Upsurge Seeds of Agriculture SME
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 29 Jul 2022 – 02 Aug 2022
- Listing date
- 11 Aug 2022
- Face value
- ₹10 per share
- Issue price
- ₹120 per share
- Lot size
- 1,200 shares
- Total issue size
- ₹22.81 Cr
- Market cap at offer price
- ₹84.72 Cr
- Promoter holding
- 96.92% → 70.82% pre-issue → post-issue
- ISIN
- INE0CBM01019
- Registrar
- MUFG Intime India Pvt.Ltd.
- Lead managers
- Finshore Management Services Ltd.
- Registered office
- Plot No.17, Shreenathji Industrial Estate, National Highway 8-B, Kuvadva, 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 | 96,000 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹120
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,44,000 |
| S-HNI (min) | 2 | 2,400 | ₹2,88,000 |
| S-HNI (max) | 6 | 7,200 | ₹8,64,000 |
| B-HNI (min) | 7 | 8,400 | ₹10,08,000 |
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 (₹) | 9.79 | — |
| P/E (×) | 12.26 | — |
| Market cap | — | ₹84.72 Cr |
Key performance indicators
- Return on net worth
- 35.42%
- ROCE
- 36.45%
- Debt / equity
- 0.16
- PAT margin
- 5.23%
- NAV per share
- ₹21.70
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Upsurge Seeds of Agriculture SME
Upsurge Seeds of Agriculture Limited (incorporated October 30, 2017) is a seed manufacturing and marketing company operating in the Indian seed industry. The company grows, develops, processes and markets varieties of seeds for field crops and vegetables, with different variants suited to varying agro-climatic conditions across geographic regions in India. The company obtains nucleus and breeder seeds from government agricultural universities and third parties, which are delivered to farmers to produce foundation seeds. Seeds are then processed, conditioned and marketed primarily to dealers, who sell to farmers as end consumers. The promoter, Mr. Arvindkumar Jadavjibhai Kakadia, brings over 23 years of experience in seed processing and is Managing Director of Bombay Super Hybrid Seeds Limited (listed on NSE). Groundnut seeds are the largest revenue contributor, accounting for 72.90%, 83.14% and 78.64% of revenue from operations in FY2022, FY2021 and FY2020 respectively.
Company Analysis
from RHPUpsurge Seeds of Agriculture Limited is a technology-driven seeds manufacturing company engaged in growing, developing, processing and marketing of seeds for field crops and vegetables across varying agro-climatic conditions in India.
Upsurge Seeds of Agriculture Limited (incorporated October 30, 2017) is a seed manufacturing and marketing company operating in the Indian seed industry. The company grows, develops, processes and markets varieties of seeds for field crops and vegetables, with different variants suited to varying agro-climatic conditions across geographic regions in India. The company obtains nucleus and breeder seeds from government agricultural universities and third parties, which are delivered to farmers to produce foundation seeds. Seeds are then processed, conditioned and marketed primarily to dealers, who sell to farmers as end consumers. The promoter, Mr. Arvindkumar Jadavjibhai Kakadia, brings over 23 years of experience in seed processing and is Managing Director of Bombay Super Hybrid Seeds Limited (listed on NSE). Groundnut seeds are the largest revenue contributor, accounting for 72.90%, 83.14% and 78.64% of revenue from operations in FY2022, FY2021 and FY2020 respectively.
Objects of the Issue
- To meet the Working Capital requirements ₹2,130.96 lakhs p.20
- General Corporate Purpose ₹100.00 lakhs p.20
- To meet Issue Expenses ₹50.00 lakhs p.20
- To meet Working Capital requirements ₹2,130.96 lakhs p.68
- General Corporate Purpose ₹100.00 lakhs p.68
- To meet issue expenses ₹50.00 lakhs p.68
Issue Structure
- Total Issue
- ₹2,280.96 Lakhs
- Fresh Issue
- ₹2,280.96 Lakhs (19,00,800 Equity Shares of ₹10/- each at ₹120/- per share)
- Offer for Sale
- Nil
- Price Band
- ₹120/- per Equity Share (Fixed Price)
- Lot Size
- 1,200 Equity Shares
- Face Value
- ₹10/- per Equity Share
Business Model
The company earns revenue from the production, processing and marketing of seed products. Revenue from operations for FY2022, FY2021 and FY2020 were ₹7,564.41 lakhs, ₹6,261.99 lakhs and ₹1,758.16 lakhs respectively. The company sells seeds primarily to dealers who in turn sell to farmers. The company obtains raw materials (nucleus and breeder seeds) from government agricultural universities and third parties, which it delivers to selected Seed Growing Farmers to produce foundation seeds. These seeds are then processed, conditioned and marketed.
Business Segments
SWOT Analysis
- • Technology-driven seed manufacturing with product variety across field crops and vegetables(p.20)
- • Promoter has extensive experience in seed processing industry with 23+ years and manages listed company(p.31)
- • Strong revenue growth with 20.4% CAGR from FY2020 to FY2022(p.20)
- • Positive profitability trend with PAT of Rs. 396.44 lakhs in FY2022 vs Rs. 21.92 lakhs in FY2020(p.20)
- • Wide product portfolio across 40+ crop varieties with multiple seed variants(p.87)
- • ISO 9001:2015 certification demonstrating quality assurance capability(p.87)
- • Strong financial performance with consistent revenue and profitability growth(p.88)
- • Experienced promoter with 23 years in agriculture seed industry(p.87)
- • Modern processing infrastructure with 45,000+ sq ft facility equipped with advanced machinery(p.87)
- • Strong capacity utilization demonstrating operational efficiency(p.98)
- • Experienced promoter with 23+ years in agriculture industry(p.115)
- • Qualified management team with combined agriculture sector experience(p.115)
- • Technology-driven operations in seed processing(p.171)
- • Quality certifications and compliance(p.185)
- • Revenue growth trajectory(p.173)
- • Improved profitability margins(p.174)
- • Extreme dependence on groundnut seeds constituting 72.90% of revenue(p.25)
- • High customer concentration with top 10 customers accounting for 49.56% of revenue(p.25)
- • High supplier concentration with top 10 suppliers accounting for 41.28% of purchases(p.26)
- • Significant operational debt with total borrowings of Rs. 1,498.98 lakhs as at 31.03.2022(p.34)
- • Negative operating cash flow of Rs. 1,286.27 lakhs in FY2022(p.32)
- • High inventory levels at 78.47% of current assets as at 31.03.2022(p.32)
- • Reliance on third-party seed growing farmers without long-term contracts(p.26)
- • Geographic concentration with 87.99% revenue from Gujarat in FY2022(p.27)
- • Trademark under objection and not yet registered(p.30)
- • Company has limited operating history with incorporation only in 2017(p.30)
- • Promoters hold 96.92% of shares creating significant concentration risk(p.20)
- • Related party transactions constitute material portion of business(p.29)
- • Corporate governance discrepancies including filing errors and regulatory non-compliance(p.29)
- • Heavy dependence on a small number of major customers(p.98)
- • Limited geographic presence concentrated in three states only(p.88)
- • Small workforce of only 16 full-time employees limits operational scale(p.98)
- • High leverage with debt-to-equity ratio of 1.34(p.177)
- • Significant dependence on few customers(p.176)
- • Limited cash position(p.138)
- • Concentrated promoter ownership limiting public shareholding(p.126)
- • No bonus or profit-sharing plan for directors and KMPs(p.122)
- • Pending income tax litigations with demand notices(p.180)
- • Expansion into new geographic markets beyond Gujarat(p.27)
- • Product portfolio diversification beyond groundnut seeds(p.25)
- • Growing Indian seed industry with increasing agricultural inputs demand(p.20)
- • Expansion into new geographic markets with significant growth potential(p.88)
- • Development of new seed varieties to address changing farmer requirements(p.88)
- • Increasing seed replacement ratio trend driving commercial seed market growth(p.85)
- • Rising farmer awareness and willingness to pay premium for quality certified seeds(p.85)
- • Indian seed industry projected to grow at 13.6% CAGR reaching US$9.1 Billion by 2024(p.85)
- • Opportunity to establish brand presence and customer loyalty in new regions(p.89)
- • Expansion into multiple states for seed distribution(p.185)
- • Growing agricultural seed market in India(p.171)
- • Group company synergy via Bombay Super Hybrid Seeds(p.188)
- • Increased production capacity and R&D investment(p.115)
- • SME platform listing enabling capital access(p.184)
- • Seasonal nature of business causing quarterly and half-yearly revenue fluctuations(p.24)
- • Weather-dependent production and demand with crop disease and pest risks(p.26)
- • Heavy competition from both organized and unorganized sector players(p.30)
- • Raw material supply chain dependence on government universities with no long-term contracts(p.27)
- • Regulatory compliance requirements for seed quality and safety(p.28)
- • Uncertain tax treatment with varying judicial views on agricultural income exemptions(p.33)
- • Tax litigation with 2 cases against company involving Rs. 4.27 lakhs in dispute(p.21)
- • Economic slowdown risks and Indian macroeconomic uncertainty(p.38)
- • COVID-19 pandemic ongoing uncertainty with potential for future outbreaks(p.38)
- • Natural disasters and man-made disasters with uninsured losses(p.38)
- • Changing government policies and regulatory frameworks(p.39)
- • Political instability and social unrest impacting Indian economy(p.39)
- • Foreign exchange and currency volatility risks(p.38)
- • Intense competition from established and niche players in fragmented seed market(p.98)
- • Dependency on monsoon and weather conditions affecting seed production(p.83)
- • Regulatory compliance requirements across Seeds Act, Food Safety, and GST laws(p.101)
- • Risk of crop failure and damage during seed production affecting supply(p.87)
- • Global economic uncertainty and potential demand slowdown(p.81)
- • Seasonal nature of agriculture business(p.176)
- • Concentration risk in groundnut seeds product(p.171)
- • Competition from established seed companies(p.176)
- • Regulatory and compliance risks(p.171)
- • Exposure to input price fluctuations and forex risks(p.171)
- • Related party conflicts with Bombay Super Hybrid Seeds Ltd(p.188)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Arvindkumar Jadavjibhai Kakadia | Promoter | 33.92% | 24.79% |
| Mrs. Sonalben Arvindbhai Kakadiya | Promoter | 19.38% | 14.16% |
| Mr. Viken Jentilal Kakadiya | Promoter | 24.23% | 17.71% |
| Mr. Jadavjibhai Devarajbhai Patel | Promoter Group | 4.85% | 3.54% |
| Mrs. Jyotsanaben Jadavjibhai Kakadiya | Promoter Group | 4.85% | 3.54% |
| Mrs. Hetalben Rajanibhai Kakadiya | Promoter Group | 4.85% | 3.54% |
| Mrs. Sangitaben Kiritbhai Kakadia | Promoter Group | 4.85% | 3.54% |
| Mr. Arvindkumar Jadavjibhai Kakadia | Promoter | 33.92% | 24.79% |
| Mrs. Sonalben Arvindbhai Kakadiya | Promoter | 19.38% | 14.16% |
| Mr. Viken Jentilal Kakadiya | Promoter | 24.23% | 17.71% |
| Mr. Jadavjibhai Devarajbhai Patel | Promoter Group | 4.85% | 3.54% |
| Mrs. Jyotsanaben Jadavjibhai Kakadiya | Promoter Group | 4.85% | 3.54% |
| Mrs. Hetalben Rajanibhai Kakadiya | Promoter Group | 4.85% | 3.54% |
| Mrs. Sangitaben Kiritbhai Kakadia | Promoter Group | 4.85% | 3.54% |
| Mr. Arvindkumar Jadavjibhai Kakadia | Promoter and Managing Director | 33.92% | — |
| Mr. Viken Jentilal Kakadiya | Promoter and Whole Time Director | 24.23% | — |
| Mrs. Sonalben Arvindbhai Kakadiya | Promoter and Whole Time Director & CFO | 19.38% | — |
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.