City Crops Agro
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 26 Sep 2023 – 29 Sep 2023
- Listing date
- 10 Oct 2023
- Face value
- ₹10 per share
- Issue price
- ₹25 per share
- Lot size
- 6,000 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹15 Cr
- Market cap at offer price
- ₹40.79 Cr
- Promoter holding
- 86.51% → 54.70% pre-issue → post-issue
- ISIN
- INE0M7501019
- Registrar
- Skyline Financial Services Pvt.Ltd.
- Lead managers
- Turnaround Corporate Advisors Pvt.Ltd.
- Registered office
- A-208, Titanium City Centre, Near Sachin Tower, 100 Ft Ring Road, Satellite, Gujarat
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 | 3,00,000 | — | — |
Application size
Minimum 6,000 shares per lot, in multiples, at ₹25
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 6,000 | ₹1,50,000 |
| S-HNI (min) | 2 | 12,000 | ₹3,00,000 |
| S-HNI (max) | 6 | 36,000 | ₹9,00,000 |
| B-HNI (min) | 7 | 42,000 | ₹10,50,000 |
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 (₹) | 1.13 | — |
| P/E (×) | 22.12 | — |
| Market cap | — | ₹40.79 Cr |
Key performance indicators
- Return on net worth
- 9.80%
- NAV per share
- ₹11.58
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About City Crops Agro
City Crops Agro Limited was incorporated in 2013 and operates an integrated online platform trading in products including cereals, oilseeds, pulses, and vegetables. The company is engaged in trading of fast-moving consumer goods (FMCG) related to agriculture, including seeds and agricultural produces such as rice, wheat, onions, potatoes, tomatoes, isabgol, and pulses. Additionally, the company is engaged in contract manufacturing for agricultural produce such as cucumber, onion, and castor. The company procures traded goods from suppliers and operates on an order-by-order basis with distributors and customers without long-term fixed contracts.
Company Analysis
from RHPCity Crops Agro Limited is an agricultural trading company engaged in the business of trading seeds, agricultural produces (rice, wheat, onions, potatoes, tomatoes, isabgol, pulses), and contract manufacturing of agricultural produce.
City Crops Agro Limited was incorporated in 2013 and operates an integrated online platform trading in products including cereals, oilseeds, pulses, and vegetables. The company is engaged in trading of fast-moving consumer goods (FMCG) related to agriculture, including seeds and agricultural produces such as rice, wheat, onions, potatoes, tomatoes, isabgol, and pulses. Additionally, the company is engaged in contract manufacturing for agricultural produce such as cucumber, onion, and castor. The company procures traded goods from suppliers and operates on an order-by-order basis with distributors and customers without long-term fixed contracts.
Objects of the Issue
- Working capital requirements ₹1125.00 Lakhs p.20
- General corporate purposes ₹345.00 Lakhs p.20
- Issue related expenses ₹30.00 Lakhs p.20
- To meet the Working Capital Requirements ₹1,125.00 Lakhs p.59
- General Corporate Purposes ₹345.00 Lakhs p.59
- Funding capex and general corporate purposes p.155
Issue Structure
- Total Issue
- ₹1500.00 Lakhs
- Fresh Issue
- ₹1500.00 Lakhs
- Offer for Sale
- NIL
- Price Band
- Fixed Price of Rs. 25 per equity share
- Lot Size
- 6,000 Equity Shares (minimum)
- Face Value
- Rs. 10 per equity share
Business Model
The company operates primarily as a trading business in agricultural products and seeds. It procures products from suppliers and sells them to distributors and customers on an order-by-order basis. The company also engages in contract manufacturing for certain agricultural produce. Revenue is generated through the sale of traded agricultural goods including seeds, cereals, oilseeds, pulses, and vegetables. The company does not own manufacturing facilities for most products and relies on third-party manufacturers and an integrated online platform for sales.
Business Segments
SWOT Analysis
- • Integrated online platform for agro products(p.19)
- • Diversified product portfolio in agro-inputs(p.19)
- • Contract manufacturing capability(p.19)
- • Strong revenue growth trajectory(p.35)
- • Profitability improvement(p.35)
- • Established track record and organizational stability(p.85)
- • Strong customer and supplier relationships(p.85)
- • Experienced management team(p.86)
- • Integrated business model with diversified product range(p.84)
- • Revenue growth trajectory(p.84)
- • Profitable operations with improving margins(p.84)
- • Young, experienced management team with over a decade in agriculture(p.139)
- • Integrated online platform for agricultural products(p.139)
- • Diversified product portfolio including contract manufacturing(p.139)
- • Strong financial growth trajectory(p.141)
- • No litigation or legal disputes(p.147)
- • Strong liquidity position with current ratio of 4.85(p.138)
- • Historical loan default by company(p.23)
- • Promoter credit card default history(p.23)
- • Heavy reliance on few customers(p.26)
- • Heavy dependence on few suppliers(p.26)
- • No long-term contracts with suppliers(p.24)
- • No long-term customer contracts(p.25)
- • Absence of owned cold storage facilities(p.25)
- • Promoters retain majority control post-IPO(p.32)
- • Unsecured loans from promoters repayable on demand(p.32)
- • Leased registered office premises(p.26)
- • Heavy dependence on few suppliers(p.85)
- • High concentration of revenue from top customers(p.85)
- • Limited market reach(p.87)
- • High working capital requirement(p.87)
- • Limited pricing power(p.87)
- • Small operational scale(p.86)
- • High dependency on a few customers(p.20)
- • Minimal fixed asset base and infrastructure(p.122)
- • Low working capital in absolute terms relative to operations(p.122)
- • Recently converted to public company with limited track record(p.99)
- • High proportion of receivables relative to cash(p.122)
- • India's growing agricultural sector(p.19)
- • Expansion of Indian food processing industry(p.19)
- • Projected agricultural sector growth(p.19)
- • Rising rural and urban income driving agricultural demand(p.19)
- • Adoption of advanced agricultural technologies(p.19)
- • Geographic expansion into new markets(p.61)
- • Diversification into new agricultural products(p.61)
- • Retail direct-to-consumer distribution(p.61)
- • Growing Indian agricultural sector(p.83)
- • Government support and policy tailwinds(p.79)
- • Rising demand for value-added services(p.87)
- • Expansion into new geographies and markets(p.103)
- • Growing demand in agricultural commodities post-COVID revival(p.141)
- • Contract manufacturing expansion for agricultural products(p.139)
- • Listing on SME platform to access capital markets(p.151)
- • Potential to leverage digital platform for market penetration(p.139)
- • Seasonal volatility in agro-business(p.25)
- • Weather dependency and crop failure risk(p.25)
- • Intense competition from organized players(p.26)
- • Competition from unorganized sector(p.31)
- • Geographical concentration risk(p.30)
- • Product liability and quality defect risks(p.29)
- • Regulatory compliance burden for hazardous products(p.28)
- • COVID-19 pandemic risk(p.33)
- • Indian economic slowdown risk(p.34)
- • Inflation impact on costs(p.35)
- • Changing regulatory environment(p.34)
- • Intense competition from organized and unorganized players(p.87)
- • No entry barriers enabling new competition(p.87)
- • Competitive disadvantage vs larger players(p.87)
- • Rising labor costs(p.87)
- • Government policy changes(p.87)
- • Agricultural sector volatility(p.87)
- • Monsoon and weather dependency(p.80)
- • Cyclicality and seasonality of agricultural commodities market(p.144)
- • Price volatility in agricultural inputs and commodities(p.144)
- • Regulatory and policy risks in agriculture sector(p.144)
- • Competition from existing and potential competitors(p.145)
- • External economic factors affecting agricultural trade(p.139)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Kaupilkumar Hasmukhbhai Shah | Promoter | 50.09% | — |
| Shitalben Kaupilkumar Shah | Promoter | 36.42% | — |
| Kaupilkumar Hasmukhbhai Shah | Promoter | 50.09% | 31.67% |
| Shitalben Kaupilkumar Shah | Promoter | 36.42% | 23.03% |
| Kaupilkumar Hasmukhbhai Shah | Promoter | 50.09% | 31.67% |
| Shitalben Kaupilkumar Shah | Promoter | 36.42% | 23.03% |
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.