Empyrean Cashews SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- Listing date
- 31 Mar 2022
- Face value
- ₹10 per share
- Issue price
- ₹37 per share
- Lot size
- 3,000 shares
- Total issue size
- ₹19.41 Cr
- Market cap at offer price
- ₹73.24 Cr
- Promoter holding
- 48.50% → 34.91% pre-issue → post-issue
- ISIN
- INE0GGO01015
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- Systematix Corporate Services Ltd.
- Registered office
- 1309, Lodha Supremus Powai, Saki Vihar Road, opposite MTNL Office, Maharashtra
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 | 2,64,000 | — | — |
Application size
Minimum 3,000 shares per lot, in multiples, at ₹37
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 3,000 | ₹1,11,000 |
| S-HNI (min) | 2 | 6,000 | ₹2,22,000 |
| S-HNI (max) | 9 | 27,000 | ₹9,99,000 |
| B-HNI (min) | 10 | 30,000 | ₹11,10,000 |
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 (₹) | 0.46 | — |
| P/E (×) | 80.43 | — |
| Market cap | — | ₹73.24 Cr |
Key performance indicators
- Return on net worth
- 3.44%
- PAT margin
- 3.36%
- NAV per share
- ₹13.36
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Empyrean Cashews SME
Empyrean Cashews Limited, incorporated on March 21, 2014 and converted to a public company on November 22, 2021, is engaged in processing raw cashew nuts into finished cashew kernels of different grades and flavours, along with organic manure production. The company markets its products under the brand name 'KRISHIVAL CASHEWS' and supplies to consumers across 26+ tier II and tier III towns in India. It produces organic manure from byproducts including husk and other biodegradable materials from raw cashew processing. The company primarily caters to the domestic market with a presence of more than 30 distributors across India. As of October 31, 2021, the company reported revenue of ₹2,684.59 lakhs and PAT of ₹166.69 lakhs.
Company Analysis
from RHPEmpyrean Cashews Limited is an India-based cashew processing and organic manure company that converts raw cashew nuts into finished cashew kernels under the brand 'KRISHIVAL CASHEWS' and sells organic manure derived from cashew processing byproducts.
Empyrean Cashews Limited, incorporated on March 21, 2014 and converted to a public company on November 22, 2021, is engaged in processing raw cashew nuts into finished cashew kernels of different grades and flavours, along with organic manure production. The company markets its products under the brand name 'KRISHIVAL CASHEWS' and supplies to consumers across 26+ tier II and tier III towns in India. It produces organic manure from byproducts including husk and other biodegradable materials from raw cashew processing. The company primarily caters to the domestic market with a presence of more than 30 distributors across India. As of October 31, 2021, the company reported revenue of ₹2,684.59 lakhs and PAT of ₹166.69 lakhs.
Objects of the Issue
- Working Capital Requirements ₹1,500.00 Lakhs p.20
- General Corporate Purposes ₹374.14 Lakhs p.20
- To meet the Working Capital Requirements ₹1,500.00 Lakhs p.63
- General Corporate Purposes ₹374.14 Lakhs p.63
- To meet the Issue Expenses ₹67.25 Lakhs p.68
Issue Structure
- Total Issue
- ₹1,941.39 Lakhs
- Fresh Issue
- 52,47,000 Equity Shares of face value ₹10/- each at price of ₹37/- per share aggregating ₹1,941.39 Lakhs
- Price Band
- ₹37/- per Equity Share
- Lot Size
- 3,000 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue through two primary channels: (1) Processing and sale of cashew kernels in different grades and flavours to domestic consumers through a distributor network across 26+ tier II and tier III towns, and (2) Production and sale of organic manure derived from cashew processing byproducts.
Business Segments
SWOT Analysis
- • Established brand presence across 26+ tier II & III towns in India(p.20)
- • Diversified product portfolio including cashew kernels and organic manure(p.20)
- • Growing Indian cashew market with estimated market size of ₹265Bn by Fiscal 2025(p.20)
- • India's position as second largest producer and exporter of cashew kernels globally(p.20)
- • ISO certifications for quality management and food safety(p.104)
- • Strategically located manufacturing with integrated facilities reducing costs(p.104)
- • Established brand presence across 26+ cities in tier II and III towns(p.70)
- • Distribution network with 30+ distributors across India(p.103)
- • Experienced management team with 20+ years cashew industry experience(p.123)
- • Strong promoter experience and established market presence(p.186)
- • Established brand recognition across multiple geographies(p.186)
- • Positive profitability trajectory with strong PAT growth(p.186)
- • Customer-oriented approach and cordial supplier relations(p.186)
- • Diversified customer base reducing dependence on individual distributors(p.205)
- • Heavy dependence on a limited number of key customers for majority of revenue(p.30)
- • High indebtedness with secured and unsecured borrowings of ₹1,152.43 Lakhs as of October 31, 2021(p.27)
- • Lack of formal contractual arrangements with distribution partners(p.29)
- • Non-ownership of crucial operational properties (leasehold arrangements only)(p.30)
- • Compliance failures with statutory requirements including factory and pollution control acts(p.29)
- • Outstanding income tax litigation with contingent liability of ₹25.75 Lakhs(p.30)
- • Group company losses in past years with no assurance of profitability(p.33)
- • Working capital intensive operations with high inventory holding periods(p.65)
- • Low capacity utilization at 46.75% as of October 2021(p.110)
- • Profitability margins remain modest despite recent improvements(p.106)
- • Heavy dependence on imported raw materials (70% of procurement)(p.104)
- • Significant dependence on raw cashew nut imports and price volatility exposure(p.171)
- • High debt burden with multiple unsecured borrowings at elevated interest rates(p.178)
- • Revenue decline of 35.99% in FY2021 due to COVID-19 operational disruptions(p.199)
- • High finance costs reflecting operational leverage and credit dependence(p.201)
- • Contingent liabilities against the company(p.164)
- • High supplier concentration with top 5 suppliers representing significant portion of purchases(p.206)
- • Pending income tax demand notice against the company(p.209)
- • Significant debt obligations requiring working capital and term loans(p.203)
- • Expansion into new geographical markets in India and internationally(p.32)
- • Development of new cashew product variants and packaging formats(p.28)
- • Cashew sector provides employment to over 1.5 million workers indicating growth potential(p.20)
- • Huge untapped domestic market estimated at ₹20,800 crores(p.70)
- • Growing demand for packaged and value-added cashew products(p.92)
- • Expansion of brand to nuts and nuts-based products(p.70)
- • Increasing urbanization and rising per capita incomes driving consumption(p.93)
- • Government schemes like PLI and PM-FME supporting food processing sector(p.99)
- • Expansion into new markets with existing brand infrastructure(p.186)
- • Production volume growth potential (higher volumes at lower value indicates market opportunity)(p.200)
- • Acquisition of complementary businesses to diversify operations(p.187)
- • Essential goods status enabling operations during lockdowns and disruptions(p.206)
- • Listing on NSE EMERGE platform with market making support for three years(p.230)
- • Significant competition from both organized and unorganized players with greater resources(p.24)
- • Heavy dependence on raw material imports from few countries (71% from Benin in FY2021)(p.25)
- • COVID-19 pandemic ongoing impact on operations and demand(p.23)
- • Seasonal nature of cashew procurement dependent on rainfall patterns(p.31)
- • Currency fluctuation risk affecting import costs from foreign suppliers(p.31)
- • Regulatory compliance risks including food safety and environmental standards(p.24)
- • Geographic concentration of operations in Kolhapur vulnerable to local disruptions(p.37)
- • Dependency on third-party transportation with no formal contracts(p.28)
- • Susceptibility to volatility in raw cashew nut prices and forex fluctuations(p.106)
- • Heavy competition from Vietnam, which controls 50%+ of global processing(p.95)
- • Dependence on West African suppliers; major share (71%) from Benin(p.104)
- • COVID-19 impact on supply chains and demand in HORECA segment(p.106)
- • Shortage of raw cashew supply; India imports 54% of total domestic supply(p.86)
- • Stringent factory and labour laws difficult to comply with for SMEs(p.96)
- • Raw cashew nut price volatility impacting gross margins(p.200)
- • COVID-19 pandemic impact on labour availability and supply chain(p.187)
- • Foreign exchange rate fluctuations on import-dependent operations(p.188)
- • Regulatory and policy risks including GST rate changes(p.188)
- • Exposure to COVID-19 pandemic impacts on supply chain and logistics(p.206)
- • Interest rate risk from variable-rate borrowings(p.204)
- • Liquidity risk from dependence on working capital limits for operations(p.204)
- • Seasonal variations in sales volumes affecting quarterly comparability(p.205)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Aparna Morale Bangar | Promoter | 56.99% | — |
| Nana Prakash Mhaske | Promoter | 56.99% | — |
| Anant Pandurang Kulkarni | Promoter | 56.99% | — |
| Aparna Morale Bangar | Promoter/Managing Director | 52.79% | 38.80% |
| Nana Prakash Mhaske | Promoter/Executive Director | 2.10% | 1.54% |
| Anant Pandurang Kulkarni | Promoter/Executive Director | 2.10% | 1.54% |
| Aparna Morale Bangar | Promoter | 52.76% | — |
| Nana Prakash Mhaske | Promoter | 2.06% | — |
| Anant Pandurang Kulkarni | Promoter | 2.06% | — |
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.