Proventus Agrocom
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 24 May 2023 – 26 May 2023
- Listing date
- 05 Jun 2023
- Face value
- ₹10 per share
- Issue price
- ₹771 per share
- Lot size
- 160 shares
- Issue type
- Book Building issue
- Total issue size
- ₹69.54 Cr
- Market cap at offer price
- ₹264 Cr
- Promoter holding
- 92.29% → 70.84% pre-issue → post-issue
- ISIN
- INE0ONE01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Sundae Capital Advisors Pvt.Ltd.
- Registered office
- Unit 515, 5th Floor, C Wing, 1 MTR Cabin, Atrium, Village Mulgaon, MV Road, Andheri (East), Near Acme Plaza, 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 |
|---|---|---|---|
| Anchor investor · within QIB | 0 | — | — |
| Market maker | 45,120 | — | — |
Application size
Minimum 160 shares per lot, in multiples, at ₹771
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 160 | ₹1,23,360 |
| S-HNI (min) | 2 | 320 | ₹2,46,720 |
| S-HNI (max) | 8 | 1,280 | ₹9,86,880 |
| B-HNI (min) | 9 | 1,440 | ₹11,10,240 |
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.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 4.14 | — |
| P/E (×) | 186.23 | — |
| Market cap | — | ₹264 Cr |
Key performance indicators
- Return on net worth
- 1.91%
- ROCE
- 4.00%
- Debt / equity
- 0.56
- NAV per share
- ₹216.52
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Proventus Agrocom
Proventus Agrocom Limited is an integrated health food brand with presence across the entire range of dry fruits, nuts, seeds and berries and healthy snacking products. The company was incorporated as Manthan Agrocom Private Limited on October 20, 2015, and later renamed to Proventus Agrocom Limited. It operates through subsidiaries including ProV Foods Private Limited and Proventus Retail Private Limited which retail the ProV brand products (100+ SKUs). The company sources premium quality dry fruits including almonds, cashews, walnuts, raisins and pistachios from orchards across India and abroad. The company also has subsidiaries in bulk sales (Proventus Commodities DMCC in Dubai, 100% owned) and bio-fuel briquettes processing (Pro-Nova Bio Technologies Private Limited, 51% owned). Revenue from operations was ₹31,798.26 lakhs for the nine months ended December 31, 2022, and ₹40,326.68 lakhs for FY2022.
Company Analysis
from RHPProventus Agrocom is an integrated health food brand offering dry fruits, nuts, seeds, berries and healthy snacking products across the value chain from sourcing to retail distribution under the 'ProV' brand.
Proventus Agrocom Limited is an integrated health food brand with presence across the entire range of dry fruits, nuts, seeds and berries and healthy snacking products. The company was incorporated as Manthan Agrocom Private Limited on October 20, 2015, and later renamed to Proventus Agrocom Limited. It operates through subsidiaries including ProV Foods Private Limited and Proventus Retail Private Limited which retail the ProV brand products (100+ SKUs). The company sources premium quality dry fruits including almonds, cashews, walnuts, raisins and pistachios from orchards across India and abroad. The company also has subsidiaries in bulk sales (Proventus Commodities DMCC in Dubai, 100% owned) and bio-fuel briquettes processing (Pro-Nova Bio Technologies Private Limited, 51% owned). Revenue from operations was ₹31,798.26 lakhs for the nine months ended December 31, 2022, and ₹40,326.68 lakhs for FY2022.
Objects of the Issue
- Funding working capital requirements of our Company ₹990.77 lakhs p.23
- Funding working capital requirements of our material subsidiary namely, Prov Foods Private Limited ₹2,986.29 lakhs p.23
- General Corporate Purposes ₹1,077.68 lakhs p.23
- Funding working capital requirements of our Company ₹ 990.77 lakhs p.82
- Funding working capital requirements of our material subsidiary namely, Prov Foods Private Limited ₹ 2,986.29 lakhs p.82
- General Corporate Purposes ₹ 1,077.68 lakhs p.82
Issue Structure
- Total Issue
- Up to ₹6,954.42 lakhs (9,02,000 Equity Shares)
- Fresh Issue
- Up to ₹5,179.99 lakhs (6,71,853 Equity Shares)
- Offer for Sale
- Up to ₹1,774.43 lakhs (2,30,147 Equity Shares)
- Price Band
- ₹771 per Equity Share (100% Fixed Price Offer)
- Lot Size
- 160 Equity Shares and in multiples thereof
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue through retail sales of dry fruits, nuts, seeds, berries and healthy snacking products under the 'ProV' brand through subsidiaries ProV Foods Private Limited and Proventus Retail Private Limited. It also generates revenue through bulk sales of dry fruits via its parent company (Proventus Agrocom Limited) and international bulk sales through its Dubai subsidiary Proventus Commodities DMCC. The company sources raw materials from orchards across India and abroad, processes and packages them under stringent quality controls, and sells through modern trade channels (supermarkets, hypermarkets) and e-commerce platforms.
Business Segments
SWOT Analysis
- • Integrated value chain presence from sourcing to distribution(p.22)
- • Strong brand with 100+ SKUs and rapid growth trajectory(p.22)
- • Significant revenue growth from ProV brand(p.31)
- • Stringent quality control and third-party certification(p.22)
- • Promoter experience in agro-produce industry(p.22)
- • Integrated business model across value chain from sourcing to distribution(p.241)
- • Strong brand presence with 100+ SKUs under ProV brand achieving 47.99% CAGR(p.242)
- • Direct relationships with 45+ global suppliers for sourcing(p.242)
- • Pan-India distribution network with presence across multiple channels(p.244)
- • FSSC 22000 compliant processing plant(p.242)
- • Experienced promoter team with 100+ years cumulative experience in agri-produce value chain(p.243)
- • Negative operating cash flows in recent period(p.45)
- • Heavy dependence on top 5 customers(p.37)
- • High working capital requirements with low margins(p.31)
- • Significant indebtedness and debt covenant compliance risks(p.44)
- • Ongoing Income Tax Department investigation of promoter and company(p.40)
- • Missing critical licenses and certifications(p.42)
- • High dependence on limited customer base(p.256)
- • Need for factory relocation requiring production suspension(p.243)
- • Relatively thin profit margins with profit after tax of only 0.59% of revenue(p.249)
- • Significant working capital requirements with inventory holding of 21 days(p.253)
- • Negative operating cash flow in nine months period(p.253)
- • Temporary income tax search and investigation by Income Tax Department focusing on transactions with specific entities(p.262)
- • High debt obligations and dependent financing; Company relies on credit facilities from banks with periodic renewal requirements(p.258)
- • Subsidiary's missing consent to establish documentation with pollution control authority(p.273)
- • Pending intellectual property applications with objections limiting trademark portfolio expansion(p.276)
- • Subsidiary has extended substantial short-term loans to parent company indicating liquidity strain(p.259)
- • Growing snacking market with increasing consumer preference(p.23)
- • Rising health consciousness and meal replacement trend(p.23)
- • Demographic growth in snacking driven by Gen Z and millennials(p.23)
- • Expansion into modern retail channels(p.36)
- • Direct-to-consumer e-commerce expansion(p.36)
- • Growing consumer preference for branded healthy snacking products(p.241)
- • Increasing health and wellness consciousness post-COVID(p.241)
- • Expansion in modern retail and e-commerce channels(p.244)
- • Opportunity to expand ProV brand portfolio with new product segments(p.243)
- • Shift from unpackaged to packaged dry fruits due to hygiene awareness(p.241)
- • Listing on SME platform enables growth capital access and market visibility with potential for main board migration(p.278)
- • Mandatory market making support for three years post-listing ensures liquidity and price support(p.280)
- • Strong positive net-worth across financial years supports growth financing and operational stability(p.279)
- • Volatility and disruption in raw material sourcing(p.30)
- • Weather-dependent raw material cultivation(p.33)
- • Foreign exchange volatility on imports(p.37)
- • Intense competition from larger and better-capitalized competitors(p.35)
- • Changing consumer preferences and food trends(p.32)
- • Retail channel consolidation and negotiating power of modern trade(p.36)
- • Regulatory changes in food safety and environmental compliance(p.41)
- • Raw material price volatility and commodity price fluctuations(p.244)
- • Weather and monsoon dependency affecting agricultural supply(p.256)
- • Intense competition from larger players with greater resources(p.244)
- • Foreign currency risk from significant import exposure(p.254)
- • Dependence on subsidiary ProV Foods operations and potential facility disruptions(p.243)
- • Ongoing income tax investigation creates regulatory uncertainty and potential penal liability for promoter and company(p.262)
- • Trademark infringement claim against third party demonstrates market competition and IP enforcement challenges(p.276)
- • Mandatory three-year lock-in on SME platform and migration restrictions limit exit opportunities for founders(p.293)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Durga Prasad Jhawar | Promoter | 0.18% | — |
| Deepak Kumar Agrawal | Promoter | 7.56% | — |
| Shalin Sanjiv Khanna | Promoter & Promoter Selling Shareholder | 5.34% | — |
| Shree JMD Investment Advisors LLP | Promoter & Promoter Selling Shareholder | 78.85% | — |
| Shree JMD Investment Advisors LLP | Promoter | 78.85% | 63.36% |
| Durga Prasad Jhawar | Promoter | 0.18% | 0.15% |
| Shalin Sanjiv Khanna | Promoter | 5.34% | 4.29% |
| Deepak Kumar Agrawal | Promoter | 7.56% | 6.08% |
| Durga Prasad Jhawar | Promoter | 0.18% | — |
| Deepak Kumar Agrawal | Promoter | 7.56% | — |
| Shalin Sanjiv Khanna | Promoter | 5.34% | — |
| Shree JMD Investment Advisors LLP | Promoter Group | 78.85% | — |
| Shree JMD Investment Advisors LLP | Promoter Group | 78.85% | — |
| Deepak Kumar Agrawal | Promoter | 7.56% | — |
| Shalin Sanjiv Khanna | Promoter | 5.34% | — |
| Durga Prasad Jhawar | Promoter | 0.18% | — |
| Ritu Tarun Agrawal | Promoter Group | 0.07% | — |
| Sanjeev Jagdish Khanna | Promoter Group | 0.29% | — |
| Shree JMD Investment Advisors LLP | Promoter/Selling Shareholder | — | — |
| Shalin Sanjiv Khanna | Selling Shareholder | — | — |
| Sanjiv Jagdish Khanna | Selling Shareholder | — | — |
| Manish Bhagchand Jain HUF | Selling Shareholder | — | — |
| Guruprasad Rao | Selling Shareholder | — | — |
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.