Prospect Consumer Products
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 Mar 2023 – 13 Mar 2023
- Listing date
- 20 Mar 2023
- Face value
- ₹10 per share
- Issue price
- ₹61 per share
- Lot size
- 2,000 shares
- Total issue size
- ₹7.48 Cr
- Market cap at offer price
- ₹24.95 Cr
- Promoter holding
- 88.44% → 61.94% pre-issue → post-issue
- ISIN
- INE0OKG01017
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Interactive Financial Services Ltd.
- Registered office
- 417, Sun Orbit B/h.Rajpath Club Road, Bodakdev, 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 | 62,000 | — | — |
Application size
Minimum 2,000 shares per lot, in multiples, at ₹61
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 2,000 | ₹1,22,000 |
| S-HNI (min) | 2 | 4,000 | ₹2,44,000 |
| S-HNI (max) | 8 | 16,000 | ₹9,76,000 |
| B-HNI (min) | 9 | 18,000 | ₹10,98,000 |
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 |
|---|---|---|
| Market cap | — | ₹24.95 Cr |
Key performance indicators
- ROCE
- −17.65%
- NAV per share
- ₹8.50
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Prospect Consumer Products
Prospect Commodities Limited, incorporated on January 06, 2022 and converted to a public company on January 03, 2023, acquired the running business of partnership firm 'M/s Fortune Exports' which was established in 2015. The company operates a cashew processing plant with an expanded capacity of 600 tonnes per annum (increased from 150 TPA). The partnership firm generated ₹987.89 lacs in turnover in FY 2021 with ₹784.87 lacs from agri products. The company processes raw cashew nuts (RCN) and sells finished cashew products primarily to wholesale customers in Gujarat through B2B channels. The company is engaged in importing raw materials and trading processed cashews.
Company Analysis
from RHPProspect Commodities Limited is a cashew nuts processing and trading company operating in India's agro-commodities sector.
Prospect Commodities Limited, incorporated on January 06, 2022 and converted to a public company on January 03, 2023, acquired the running business of partnership firm 'M/s Fortune Exports' which was established in 2015. The company operates a cashew processing plant with an expanded capacity of 600 tonnes per annum (increased from 150 TPA). The partnership firm generated ₹987.89 lacs in turnover in FY 2021 with ₹784.87 lacs from agri products. The company processes raw cashew nuts (RCN) and sells finished cashew products primarily to wholesale customers in Gujarat through B2B channels. The company is engaged in importing raw materials and trading processed cashews.
Objects of the Issue
- Repayment of Unsecured Loans ₹50.00 lakhs p.55
- Long-term working capital requirement ₹440.00 lakhs p.50
- General corporate purposes ₹160.00 lakhs p.56
- Repayment of borrowings
- General corporate purposes
Issue Structure
- Total Issue
- ₹747.86 lakhs
- Fresh Issue
- 12,26,000 Equity Shares at ₹61 per share aggregating to ₹747.86 lakhs
- Price Band
- ₹61 per equity share
- Lot Size
- 2,000 Equity Shares
- Face Value
- ₹10 per Equity Share
Business Model
The company operates a B2B business model, processing raw cashew nuts and selling packaged cashew products (in 10 KG tins) to wholesalers. Revenue is generated from the sale of processed cashew nuts. The company sources raw cashew nuts from suppliers in Gujarat, Vietnam, Kolam, Tuticorin and Mangalore, and currently sells exclusively to wholesale customers within Gujarat.
Business Segments
SWOT Analysis
- • Established business with decade-plus operational history through predecessor partnership firm(p.16)
- • Significant production capacity expansion demonstrating business confidence and market demand(p.16)
- • Strong growth trajectory with 107% growth in FY 2021 versus FY 2020(p.16)
- • Profitable operations with positive earnings(p.20)
- • Promoter's extensive international market knowledge and commodity trading experience(p.74)
- • Established customer relationships generating repeat orders(p.74)
- • Strategic manufacturing location with modern machinery and good logistics connectivity(p.75)
- • High quality standards and consistent after-sale service driving customer retention(p.75)
- • Registered startup with government recognition(p.135)
- • Positive net worth and net tangible assets exceed eligibility thresholds(p.138)
- • Demonstrated positive cash generation in multiple periods(p.138)
- • All necessary government approvals and registrations obtained(p.134)
- • Central food manufacturing license obtained(p.135)
- • Extreme customer concentration with top 5 customers representing 97.13% of revenue(p.21)
- • High raw material supplier concentration with top 5 suppliers accounting for 82.40% of purchases(p.21)
- • Absence of long-term agreements with customers and suppliers(p.21)
- • Leased office and factory premises with short-term tenure and no renewal guarantee(p.22)
- • Very recently converted to public limited company with potential compliance gaps(p.23)
- • Outstanding income tax litigation of Rs. 38.95 lakhs plus interest and penalties(p.26)
- • Unregistered trademark creating IP vulnerability(p.26)
- • Unsecured promoter loans of Rs. 100.18 lakhs repayable on demand(p.26)
- • Low production capacity relative to demand(p.74)
- • Working capital constraints limiting business expansion(p.74)
- • Limited geographic presence confined to Gujarat state only(p.69)
- • High dependence on few customers for entire sales(p.78)
- • Minimal creditor base concentrated in few payables(p.133)
- • No prior public market experience or trading history(p.144)
- • Very small post-issue capitalization(p.138)
- • Lead manager track record shows significant losses for prior investors(p.142)
- • All approvals held by predecessor company requiring transition(p.135)
- • Expansion beyond current single-state market to serve high demand from North India restaurant chains(p.22)
- • Increase production capacity utilization through expanded market development(p.22)
- • High unmet demand enabling rapid capacity deployment(p.22)
- • Expand capacity from 600 to 2500 tonnes per annum over five years(p.76)
- • Enter B2C segment and online retail sales with branded products(p.75)
- • Leverage existing client relationships for new business opportunities(p.74)
- • Geographic expansion to multiple states beyond Gujarat(p.74)
- • Develop branded products and enhance market presence through digital channels(p.75)
- • Diversify product portfolio with other dry fruits(p.74)
- • SME platform listing enabling future migration to main board(p.150)
- • Mandatory market-making support for three years post-listing(p.150)
- • Access to capital markets for future growth financing(p.152)
- • Raw cashew nut prices subject to seasonal fluctuations and international market volatility(p.22)
- • Agricultural seasonality creates procurement timing and forecasting risks(p.24)
- • Geographic concentration risk with entire business operations limited to Gujarat state(p.23)
- • Dependency on third-party transportation providers with exposure to fuel price hikes(p.23)
- • Natural and man-made disasters could disrupt operations(p.24)
- • India's economic growth and policy changes could adversely impact business(p.30)
- • Highly competitive business environment with numerous organized and unorganized players(p.74)
- • Price competition from domestic and international competitors(p.74)
- • Fluctuation in raw material prices due to seasonality and weather conditions(p.76)
- • Changes in customs duty and import policies affecting raw material sourcing(p.74)
- • Lead manager's past IPO performance shows significant underperformance(p.142)
- • Minimum 50 allottees requirement could result in complete refund if not met(p.149)
- • Food license validity expires August 2024 requiring renewal(p.135)
- • Regulatory change risk for SME platform operations(p.148)
- • Small capitalization restricts investor base and liquidity(p.146)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Vimal Mishra | Promoter | 42.07% | 29.46% |
| Priyanka Mishra | Promoter | 42.07% | 29.46% |
| Vimal Sureshbhai Mishra | Promoter and Managing Director | 50% | — |
| Priyanka Vimal Mishra | Promoter and Chairman | 50% | — |
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.