One company that has been creating a stir in the ever-changing agri-business industry is Vishwas Agri Seeds private limited. The announcement of this company’s IPO has sparked enthusiasm among investors and market observers due to its strong business model and outstanding product portfolio.
The Vishwas Agri Seeds private IPO announcement is more than just a piece of news; it marks a major turning point in the company’s history. What this means for the company is that it is committed to growing and is confident in its current growth trajectory.
The impressive financial performance of the company adds intrigue to this IPO. Profit after tax (PAT) between 2022-2023, was a whopping 115.43% higher for Vishwas Agri Seeds Limited. These numbers show that the company is doing well financially and has great potential to expand in the agribusiness industry.
This article’s goal is to provide a thorough evaluation of the Vishwas Agri Seeds Private IPO and everything that it could mean for investors.
Vishwas Agri Seeds’ private IPO details
Vishwas Agri Seeds Private Limited’s IPO is a major milestone in the world of finance. March 21, 2024, marks the beginning of the IPO, which will end on March 26, 2024. Around March 27th, the final distribution will take place. The expected listing date for the company’s shares is April 1.
Vishwas agri seeds IPO lot size
The IPO is a brand-new stock offering of 30 lakh shares worth ₹26 crore. Investors have the opportunity to bid for 1,600 shares of the company at a time, with each share being valued at ₹86.
This is in accordance with SEBI vide circular CIR/MRD/DSA/06/2012 dated February 21, 2012, that standardized the lot size for the initial public offer proposal.
Vishwas agri seeds IPO reservation
There will be approximately 50% of the offering available to institutional investors and approximately 50% to retail investors.
| Particulars | Equity shares | % of the issue size |
| Market maker reservation portion | 1,52,000 | 5.07% |
| Retail individual investors | 14,24,000 | 47.47% |
| Non-institutional investors | 14,24,000 | 47.47% |
| Total | 30,00,000 |
IPO objective
- Capital expenditure for
- Furnish corporate office building
- Purchase equipment for setting up the seed testing laboratory
- Install rooftop solar monocrystalline panels
- Set up a greenhouse (Fan-pad system)
- Working capital requirement
- General corporate purpose
Also read: Working capital – the what, how, and why of business lifelines
Company details
The company was founded in 2013 in Bavla, Ahmedabad, Gujarat, and its main business is processing seeds and sending them to farmers through a network of distributors. The company sells seeds under the “Vishwas” brand name.
Groundnut, soybean, wheat, cumin, green gramme, black gramme, cotton, castol, pearl millet, maize, and research hybrid seeds for cabbage, onion, coriander, fenugreek, mustard, lucern, carrot, and watermelon are just a few of the crops offered by Vishwas Agri Seeds limited.
More than forty distinct field crops and vegetable seeds had been produced by the company as of March 31, 2023. It has a sales and distribution network that lets people in Gujarat, Maharashtra, and Rajasthan buy its goods.
Out of a total of 77 employees of the company, 18 are responsible for product marketing and sales. The revenue bifurcation of Vishwas Agri Seeds private limited provides us with a clearer understanding of the company’s revenue sources and their respective contributions.
| Particulars | September 30, 2023 | March 31, 2023 | March 31, 2022 | March 31, 2021 |
| Top 1 Customers (%) | 12.12% | 7.16% | 10.65% | 3.28% |
| Top 3 Customers (%) | 18.24% | 8.82% | 12.12% | 4.71% |
| Top 5 Customers (%) | 22.57% | 19.77% | 17.61% | 8.93% |
Statewise number of our distributors
| Sr. No. | State | No. of Distributors |
| 1 | Gujarat | 576 |
| 2 | Rajasthan | 62 |
| 3 | Madhya Pradesh | 145 |
| Total | 783 | |
Company financials
Impressive financial results have been achieved by Vishwas Agri Seeds ltd. The company’s profit after tax (PAT) between 2022-2023, was a whopping 115.43% higher.
The annual sales of Vishwas Agri Seeds private limited have shown a steady increase over the past three years. From ₹53 crores in March 2021, the sales rose to INR 64 crores in March 2022 and further increased to ₹65 crores in March 2023. This points to an upward trend in the company’s growth.
These are a few of the key financial ratios that can help decipher the financial health of the company
| Particulars | March 2023 | March 2022 | March 2021 |
| EPS (Rs.) | 16.98 | 9.49 | 4.65 |
| Gross profit margin (%) | 12.26 | 6.89 | 4.35 |
| Operating margin (%) | 12.10 | 6.70 | 4.18 |
| Net profit margin (%) | 8.17 | 3.82 | 2.16 |
| Return on networth / Equity (%) | 37.27 | 51.78 | 57.91 |
| ROCE (%) | 33.15 | 33.87 | 37.83 |
| Return on assets (%) | 9.98 | 7.37 | 5.54 |
| Current ratio (X) | 1.28 | 1.39 | 1.35 |
| Debt to equity (x) | 1.31 | 3.55 | 6.35 |
Vishwas Agri Seeds IPO promoter holding
| Sr. No. | Name of the Promoter | No. of Equityshares held | Average Cost ofAcquisition perequity share (in ₹) |
| 1 | Ashokbhai Sibabhai Gajera | 7,00,000 | 7.14 |
| 2 | Dineshbhai Madhabhai Gajera | 7,00,000 | 7.14 |
| 3 | Bharatbhai Shibabhai Gajera | 7,00,000 | 7.14 |
| 4 | Ketanbhai Lajibhai Suvagiya | 7,00,000 | 7.14 |
| 5 | Rameshbhai Lajibhai Suvagiya | 7,00,000 | 7.14 |
| 6 | Ilaben Pareshbhai Patel | 7,00,000 | 7.14 |
| 7 | Shivlalbhai Veljibhai Bhanderi | 7,00,000 | 7.14 |
| 8 | Maheshbhai Shibabhai Gajera | 7,00,000 | 7.14 |
| 9 | Babulal Lajibhai Gajera | 7,00,000 | 7.14 |
| 10 | Kalubhai Maganbhai Vekaria | 7,00,000 | 7.14 |
Before the IPO, the promoters held 100% of the shares in Vishwas Agri Seeds Private Limited. However, post-IPO, the promoter’s shareholding is expected to reduce to 70%. This change reflects the dilution of shares due to the public offering.
Company’s strengths and weaknesses
Strengths:
Integrated seed processing unit: The business’s seed processing unit, cold storage and warehouse are all housed in the same building. Consequently, operations and quality control become much more efficient.
Wide product portfolio: There is a large selection of crop seeds and hybrid vegetable seeds offered by Vishwas Agri Seeds. More than 75 different crop varieties allow them to meet a wide variety of agricultural demands.
Strong presence: Gujarat, Maharashtra, and Rajasthan are three states where the company has a strong presence.
Also read: What is a product portfolio, and how is it relevant for financial analysis?
Weaknesses:
Customer dependence: Revenue generation for the company is becoming more and more dependent on its top customers. If even one of these clients were to cut back on their orders or go elsewhere, it could be disastrous.
Industry dependence: One possible flaw is the company’s heavy dependence on the agricultural sector. Hazards such as fluctuating weather patterns and shifts in government policy pose a threat to this sector.
Further reading: The past, present, and future of the Indian agriculture industry
Bottomline
Vishwas Agri Seeds private IPO is a gateway into the thriving agri-business industry, a ticket to ride along with a company that’s sowing seeds of innovation and reaping growth.
With its robust financial performance and a promising market landscape, Vishwas Agri Seeds Private Limited stands as a beacon of potential in the investment horizon. However, don’t forget that every investment has its own risks and benefits.
