Nirman Agri Genetics
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 15 Mar 2023 – 20 Mar 2023
- Listing date
- 28 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹99 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹20.30 Cr
- Market cap at offer price
- ₹59.01 Cr
- Promoter holding
- 99.99% → 65.59% pre-issue → post-issue
- ISIN
- INE0OK701014
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- First Overseas Capital Ltd.
- Registered office
- Vedant Apartment, Near Reliance Shopee, Dindori Road, Panchavati, 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 | 1,04,400 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹99
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,18,800 |
| S-HNI (min) | 2 | 2,400 | ₹2,37,600 |
| S-HNI (max) | 8 | 9,600 | ₹9,50,400 |
| B-HNI (min) | 9 | 10,800 | ₹10,69,200 |
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 (₹) | 10.00 | — |
| P/E (×) | 9.90 | — |
| Market cap | — | ₹59.01 Cr |
Key performance indicators
- Return on net worth
- 96.83%
- ROCE
- 65.83%
- Debt / equity
- 0.47
- PAT margin
- 18.98%
- EBITDA margin
- 25.39%
- NAV per share
- ₹10.33
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Nirman Agri Genetics
Nirman Agri Genetics Limited was incorporated as Nirman Agri Genetics Private Limited on August 19, 2020 in Nashik, Maharashtra, and was converted to a public limited company vide special resolution dated December 05, 2022 (fresh certificate of incorporation issued January 03, 2023). The company is an organized agri-input player producing, processing and marketing high-quality hybrid seeds for crops such as corn, sunflower, cotton, paddy, bajra and grain sorghum, plus non-hybrid seeds primarily for paddy, all sold under the brand name 'Nirman Agri Genetics'; in 2022 it began marketing bio-pesticides, bio-fertilizers, micronutrients, fertilizer mixtures and plant growth regulators. Its lineage traces to the proprietary concern M/s. Nirman Agri Genetics run by promoter Pranav Kailas Bagal from 2018, which the company acquired on December 02, 2022 for Rs. 1,10,00,000 (settled by issuing 11,00,000 equity shares to the promoter). The company conducts R&D on 9 acres of farmland at Nimgul provided free of cost by promoter-group members, multiplies seed through third-party farmers supplied with foundation seed, outsources processing to four third-party plants in Maharashtra, Gujarat and Madhya Pradesh, and sells through a network of approximately 200 distributors/dealers concentrated in Maharashtra, Madhya Pradesh, Gujarat and Karnataka. It earns revenue from the sale of these agri-input products: revenue was Rs. 1,348.91 lakhs with profit after tax of Rs. 256.02 lakhs in FY 2022, and Rs. 1,804.28 lakhs with PAT of Rs. 230.44 lakhs for the seven months ended October 31, 2022.
Company Analysis
from DRHPNirman Agri Genetics Limited is an India-based agri-input company engaged in the production, processing and marketing of high-quality hybrid seeds (corn, sunflower, cotton, paddy, grain sorghum, etc.), pesticides and bio-organic products, and has recently forayed into micronutrients and bioproducts.
Nirman Agri Genetics Limited was incorporated as Nirman Agri Genetics Private Limited on August 19, 2020 in Nashik, Maharashtra, and was converted to a public limited company vide special resolution dated December 05, 2022 (fresh certificate of incorporation issued January 03, 2023). The company is an organized agri-input player producing, processing and marketing high-quality hybrid seeds for crops such as corn, sunflower, cotton, paddy, bajra and grain sorghum, plus non-hybrid seeds primarily for paddy, all sold under the brand name 'Nirman Agri Genetics'; in 2022 it began marketing bio-pesticides, bio-fertilizers, micronutrients, fertilizer mixtures and plant growth regulators. Its lineage traces to the proprietary concern M/s. Nirman Agri Genetics run by promoter Pranav Kailas Bagal from 2018, which the company acquired on December 02, 2022 for Rs. 1,10,00,000 (settled by issuing 11,00,000 equity shares to the promoter). The company conducts R&D on 9 acres of farmland at Nimgul provided free of cost by promoter-group members, multiplies seed through third-party farmers supplied with foundation seed, outsources processing to four third-party plants in Maharashtra, Gujarat and Madhya Pradesh, and sells through a network of approximately 200 distributors/dealers concentrated in Maharashtra, Madhya Pradesh, Gujarat and Karnataka. It earns revenue from the sale of these agri-input products: revenue was Rs. 1,348.91 lakhs with profit after tax of Rs. 256.02 lakhs in FY 2022, and Rs. 1,804.28 lakhs with PAT of Rs. 230.44 lakhs for the seven months ended October 31, 2022.
Objects of the Issue
- Funding additional working capital requirements Rs. 1,182.19 lakhs p.59
- Investment in Strategic Acquisition / Joint Venture Rs. 200.00 lakhs p.60
- Purchase of Computer and other hardware Rs. 50.63 lakhs p.60
- General Corporate Purposes Rs. 367.47 lakhs p.61
- Offer Expenses Rs. 230.00 lakhs p.61
Issue Structure
- Total Issue
- 20,50,800 Equity Shares of Rs. 10 each at Rs. 99.00 per Equity Share aggregating Rs. 2,030.29 lakhs
- Fresh Issue
- 20,50,800 Equity Shares of Rs. 10 each at Rs. 99.00 per Equity Share aggregating Rs. 2,030.29 lakhs (the entire Offer comprises a Fresh Issue)
- Offer for Sale
- Nil
- Price Band
- Fixed Price Offer at Rs. 99.00 per Equity Share
- Face Value
- Rs. 10.00 each
Business Model
Revenue comes from the sale of agri-input products - predominantly seeds (hybrid varieties for corn, sunflower, cotton, paddy, bajra, grain sorghum and other crops, plus non-hybrid paddy seeds) and, since 2022, bio-pesticides, bio-fertilizers, micronutrients, fertilizer mixtures and plant growth regulators - marketed under the 'Nirman Agri Genetics' brand through a network of approximately 200 distributors/dealers. Seed production is carried out with third-party farmers using foundation seed supplied by the company, and processing is outsourced to four third-party facilities.
Business Segments
SWOT Analysis
- • Multi-crop hybrid seed portfolio acts as a natural hedge against crop-shifting(p.92)
- • Experienced founder-led management team(p.92)
- • Established brand with consistently improving turnover and profitability(p.92)
- • In-house R&D capabilities backed by dedicated farmland at Nimgul(p.93)
- • Loyal distributor/dealer network plus newly added synergistic bio-products(p.93)
- • Pending legal proceedings involving Promoter and Directors(p.22)
- • High working capital requirements locked in debtors and inventories(p.24)
- • History of negative cash flows from operations(p.29)
- • Heavy dependence on a single (young) Promoter for business functioning(p.24)
- • No long-term contracts with major customers; purchase-order based revenues(p.23)
- • Revenue concentration in top 10 customers (42.87% / 48.33%)(p.25)
- • Geographic concentration of business in Maharashtra(p.27)
- • Unsecured loans from Directors recallable on demand (₹161.65 Lakhs)(p.30)
- • Moving up the value chain into higher-margin products(p.93)
- • Untapped market potential in new crops and adjacent products(p.93)
- • Geographic expansion into North, South and East India(p.93)
- • Pan-India expansion of marketing and distribution network(p.94)
- • Large and growing Indian seed market(p.76)
- • Significant headroom in paddy hybridization penetration(p.85)
- • Organic farming trend driving demand for micro-nutrients and bio-products(p.86)
- • Exposure to weather, disease and pest cycles inherent to agriculture(p.23)
- • High seasonality and monsoon-timing dependence of the agri-inputs business(p.23)
- • Potential adverse changes in seed-industry regulation (Seeds Bill 2004 / Maharashtra Seeds Regulation Bill 2004)(p.24)
- • Intense competition from resource-rich MNCs and large domestic players(p.25)
- • Demand risk from technological change and shifting consumer preferences(p.24)
- • Downturn in the Indian macroeconomic environment (entire revenue is India-derived)(p.32)
- • Rising interest rates on floating-rate indebtedness increasing cost of funds(p.27)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Pranav Kailas Bagal | Promoter | 99.96% | 65.57% |
| Kailas Bhimrao Bagal | Promoter Group | 0.007% | 0.004% |
| Avinash Bhimrao Bagal | Promoter Group | 0.007% | 0.004% |
| Rajashri Avinash Bagal | Promoter Group | 0.007% | 0.004% |
| Tushar Avinash Bagal | Promoter Group | 0.007% | 0.004% |
Leadership
Auto-extracted from the company's DRHP 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 DRHP before relying on it.