Ambo Agritec SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Nov 2022 – 24 Nov 2022
- Listing date
- 02 Dec 2022
- Face value
- ₹10 per share
- Issue price
- ₹30 per share
- Lot size
- 4,000 shares
- Total issue size
- ₹10.20 Cr
- Market cap at offer price
- ₹28.19 Cr
- Promoter holding
- 94.96% → 60.60% pre-issue → post-issue
- ISIN
- INE0N6V01016
- Registrar
- Cameo Corporate Services Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- 3, Pretoria Street, Chandrakunj Building, 2nd Floor, West Bengal
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 1,72,000 | — | — |
Application size
Minimum 4,000 shares per lot, in multiples, at ₹30
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 4,000 | ₹1,20,000 |
| S-HNI (min) | 2 | 8,000 | ₹2,40,000 |
| S-HNI (max) | 8 | 32,000 | ₹9,60,000 |
| B-HNI (min) | 9 | 36,000 | ₹10,80,000 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 3.41 | — |
| P/E (×) | 8.80 | — |
| Market cap | — | ₹28.19 Cr |
Key performance indicators
- Return on net worth
- 32.16%
- ROCE
- 36.00%
- Debt / equity
- 3.18
- PAT margin
- 1.26%
- EBITDA margin
- 3.01%
- NAV per share
- ₹10.61
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Ambo Agritec SME
Ambo Agritec Limited, incorporated in 1994 and converted to a public company in August 2022, is primarily engaged in manufacturing biscuits, outsourced manufacturing of edible oils and vanaspati, and trading of crude linseed oil and soybean meal. The company sources premium quality raw materials from local suppliers for biscuits and imports materials for edible oils and vanaspati products. Its state-of-the-art manufacturing plant is located at Mangalpur Industrial Estate, Raniganj in West Bengal. Products are marketed under brand names 'Happy Bites' for biscuits, 'Happy Heart' for edible oil, 'Ambo Gold' and 'Vanaspati 2000' for vanaspati, and 'Max Health' for Bengali specialty products. The company has a distribution network spanning multiple states and sells through online platforms like Flipkart, Big Basket, Reliance Retail, and JioMart.
Company Analysis
from RHPAmbo Agritec Limited manufactures biscuits, edible oils, vanaspati, and Bengali specialty products, operating in the food processing industry.
Ambo Agritec Limited, incorporated in 1994 and converted to a public company in August 2022, is primarily engaged in manufacturing biscuits, outsourced manufacturing of edible oils and vanaspati, and trading of crude linseed oil and soybean meal. The company sources premium quality raw materials from local suppliers for biscuits and imports materials for edible oils and vanaspati products. Its state-of-the-art manufacturing plant is located at Mangalpur Industrial Estate, Raniganj in West Bengal. Products are marketed under brand names 'Happy Bites' for biscuits, 'Happy Heart' for edible oil, 'Ambo Gold' and 'Vanaspati 2000' for vanaspati, and 'Max Health' for Bengali specialty products. The company has a distribution network spanning multiple states and sells through online platforms like Flipkart, Big Basket, Reliance Retail, and JioMart.
Objects of the Issue
- Working capital requirements ₹896.00 Lakhs p.19
- General corporate purposes ₹75.00 Lakhs p.19
- Issue related expenses ₹49.00 Lakhs p.19
- To meet the working capital requirements ₹896.00 Lakhs (87.84% of total issue size) p.59
- General corporate purposes ₹75.00 Lakhs (7.35% of total issue size) p.59
- Issue related expenses ₹49.00 Lakhs (4.80% of total issue size) p.59
- Objects of the Offer not specified in Part 3
Issue Structure
- Total Issue
- ₹1,020.00 Lakhs
- Fresh Issue
- ₹1,020.00 Lakhs (34,00,000 equity shares of face value ₹10/- each at ₹30/- per share)
- Offer for Sale
- Nil
- Price Band
- ₹30/- per equity share (fixed price)
- Lot Size
- 4,000 equity shares
- Face Value
- ₹10/- per equity share
Business Model
The company earns revenue through manufacturing and selling of biscuits, edible oils, vanaspati, and Bengali specialty products to distributors, retailers, and end consumers through physical and online channels. It also generates revenue from trading of crude linseed oil and soybean meal. The company operates on an order-by-order basis without long-term fixed contracts with customers.
Business Segments
SWOT Analysis
- • State-of-the-art manufacturing facility with modern equipment(p.18)
- • Premium quality raw materials sourced from reputed local suppliers and imported sources(p.18)
- • Established brand portfolio across multiple product categories(p.18)
- • Extensive geographical distribution network covering multiple states(p.24)
- • Established track record of 25+ years demonstrating business viability(p.91)
- • Strong management expertise with 12+ years in diverse industries(p.91)
- • Maintained strong relationships and long-term customer retention(p.92)
- • Well-defined organizational structure with qualified management team(p.92)
- • Excellent supplier relationships protecting business terms and pricing(p.92)
- • Diverse product portfolio across multiple food segments(p.92)
- • FSSAI certification indicating quality management systems compliance(p.85)
- • Established brand presence in Eastern India with multiple product lines across food categories(p.164)
- • State-of-the-art manufacturing facility with modern automated production processes(p.164)
- • FSSAI certification demonstrating food safety and quality compliance(p.164)
- • Experienced promoter with deep industry knowledge in bakery and confectionery segment(p.113)
- • Diversified product portfolio under established brand names(p.164)
- • High customer concentration risk with top 10 customers accounting for majority of revenue(p.27)
- • High supplier concentration with top 10 suppliers accounting for majority of purchases(p.27)
- • No long-term contracts with customers; dependent on order-by-order basis(p.25)
- • No long-term supplier agreements creating supply chain vulnerability(p.24)
- • Negative operating cash flows in prior periods(p.30)
- • High financial leverage and significant borrowings relative to equity(p.19)
- • Operating premises leased, not owned; subject to termination risk(p.24)
- • Pending contingent liabilities and outstanding litigation(p.23)
- • Limited geographic market reach primarily concentrated in West Bengal(p.92)
- • High dependence on limited number of suppliers(p.91)
- • High working capital intensity of business(p.59)
- • Significant reliance on top 5 customers representing 57.77% of revenue(p.91)
- • Vulnerability to agricultural output fluctuations(p.93)
- • High dependency on a few customers for significant revenue portion(p.165)
- • Significant financial indebtedness with debt-to-equity ratio of 2.74(p.159)
- • Outstanding income tax demands and indirect tax disputes indicating compliance weaknesses(p.169)
- • Plant concentration in single location (Raniganj) creating operational risk(p.164)
- • Group entities facing significant financial distress with negative net worth(p.124)
- • Growing food processing sector with increasing GVA and government support schemes(p.18)
- • Government schemes supporting food processing sector growth and employment(p.18)
- • Expansion into e-commerce channels and online retail platforms(p.24)
- • Market expansion opportunity through new distributor and retailer appointments(p.24)
- • Export market development in neighboring countries(p.27)
- • Expand into new geographical markets beyond West Bengal(p.92)
- • Leverage government initiatives in food processing sector(p.93)
- • Develop value-added products across portfolio(p.93)
- • Access growing Indian food processing market with 11% CAGR(p.75)
- • Expand into untapped Indian and overseas markets(p.93)
- • Leverage goodwill and brand recall in existing markets(p.92)
- • E-commerce expansion for direct-to-consumer sales channel(p.109)
- • Growth in edible oils and vanaspati market through diversification(p.108)
- • Expansion into overseas markets(p.108)
- • Growth potential in rural and semi-urban markets of Eastern India(p.108)
- • Increasing raw material prices adversely affecting manufacturing costs and margins(p.23)
- • Intense competition from established and emerging competitors in the food sector(p.29)
- • Disruptions in transportation and logistics infrastructure(p.25)
- • Foreign exchange fluctuation risks on export revenues(p.24)
- • Regulatory changes and compliance requirements affecting operations(p.34)
- • COVID-19 pandemic continued impact on business operations and demand(p.33)
- • Counterfeit and look-alike products threatening brand value(p.26)
- • Product quality and contamination risks affecting reputation and sales(p.26)
- • Water and electricity shortage impacting manufacturing operations(p.30)
- • Natural calamities and political instability affecting Indian economy(p.36)
- • Intense competition from large organized and unorganized players(p.93)
- • No entry barriers exposing business to new competitors(p.93)
- • Exposure to natural calamities impacting operations(p.93)
- • Rising labour wages reducing operational profitability(p.93)
- • Vulnerability to government policy changes affecting industry(p.93)
- • COVID-19 pandemic impact on operations and profitability(p.165)
- • Intense competition in food manufacturing and oil sectors(p.165)
- • Volatility in input costs and foreign exchange fluctuations(p.168)
- • Regulatory compliance risks and changing government policies(p.165)
- • Rapid technological advancement requiring continuous capital investment(p.165)
- • Natural or man-made disasters affecting manufacturing operations(p.165)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Umesh Kumar Agarwal | Promoter | 94.96% | 60.66% |
| Ambo Credit Private Limited | Promoter Group | 5.01% | 3.19% |
| Geetanjali Saberwal Agarwal | Promoter Group | 0.02% | 0.01% |
| Umesh Kumar Agarwal | Promoter | 56,93,160 shares (94.96%) | 56,93,160 shares (60.60%) |
| Ambo Credit Private Limited | Promoter Group | 3,00,000 shares (5.01%) | 3,00,000 shares (3.19%) |
| Geetanjali Saberwal Agarwal | Promoter Group | 1,200 shares (0.02%) | 1,200 shares (0.01%) |
| Umesh Kumar Agarwal | Promoter | 94.96% | 60.60% |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.