Vishwas Agri Seeds
Fixed Price issueSME₹25.80 Cr issue
-1.16%
Listing gain over issue price
Issue size
₹25.80 Cr
1 lot at cut-off
₹1,37,600
Lot size
1,600shares
Open
21 Mar 2024
Close
26 Mar 2024
Allotment
27 Mar 2024
Listing
01 Apr 2024
Listing performance
Issue price
₹86
Listed at
₹85
Listing-day close
₹83.60
Latest price
₹37.20
Close on 22 Oct 2026
Listing gain
-1.16%
Return since issue
-56.74%
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 21 Mar 2024 – 26 Mar 2024
- Listing date
- 01 Apr 2024
- Face value
- ₹10 per share
- Issue price
- ₹86 per share
- Lot size
- 1,600 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹25.80 Cr
- Market cap at offer price
- ₹86 Cr
- Promoter holding
- 100.00% → 70.00% pre-issue → post-issue
- ISIN
- INE0S2E01016
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- ISK Advisors Pvt.Ltd.
- Registered office
- Near Toll Tax, S.No.460, Gangad Road, Bhayla, Bavla, 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 | 1,52,000 | — | — |
Application size
Minimum 1,600 shares per lot, in multiples, at ₹86
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,600 | ₹1,37,600 |
| S-HNI (min) | 2 | 3,200 | ₹2,75,200 |
| S-HNI (max) | 7 | 11,200 | ₹9,63,200 |
| B-HNI (min) | 8 | 12,800 | ₹11,00,800 |
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
₹86 per share
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 16.98 | — |
| P/E (×) | 5.06 | — |
| Price to book (×) | 3.20 | — |
| Market cap | — | ₹86 Cr |
Key performance indicators
Latest reported period
- Return on net worth
- 23.94%
- ROCE
- 14.60%
- PAT margin
- 10.62%
- NAV per share
- ₹26.91
- Price to book
- 3.20
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Vishwas Agri Seeds
Vishwas Agri Seeds Limited (VASL) started operations in 2009 in Gondal, Rajkot, Gujarat, processing and supplying seeds to farmers under the 'Vishwas' brand. The company closed its Gondal operations in June 2023 and commenced commercial operations at a new facility in Bhayla, Ahmedabad in July 2023, which includes a seed sorting & grading unit, warehouse, and cold storage. The company is in the process of setting up a seed testing laboratory and greenhouse (fan-pad system) at its new location. The business model involves processing quality seeds and supplying them to farmers via a distribution network of dealers. The Indian seed industry reached USD 6.3 billion in 2022 and is expected to reach USD 12.7 billion by 2028, with a CAGR of 12.43% during 2023-2028.
Company Analysis
from RHPVishwas Agri Seeds Limited processes and supplies quality seeds to farmers through its distribution network, operating in the agricultural seed sector.
Vishwas Agri Seeds Limited (VASL) started operations in 2009 in Gondal, Rajkot, Gujarat, processing and supplying seeds to farmers under the 'Vishwas' brand. The company closed its Gondal operations in June 2023 and commenced commercial operations at a new facility in Bhayla, Ahmedabad in July 2023, which includes a seed sorting & grading unit, warehouse, and cold storage. The company is in the process of setting up a seed testing laboratory and greenhouse (fan-pad system) at its new location. The business model involves processing quality seeds and supplying them to farmers via a distribution network of dealers. The Indian seed industry reached USD 6.3 billion in 2022 and is expected to reach USD 12.7 billion by 2028, with a CAGR of 12.43% during 2023-2028.
Agricultural seedsAgri-input sectorAgriculture and allied industry
Objects of the Issue
- To Furnish the Corporate Office building ₹ 400.00 lakhs p.19
- To purchase Equipment's for setting up Seed Testing laboratory ₹ 150.00 lakhs p.19
- To set-up Greenhouse (Fan-Pad System) ₹ 150.00 lakhs p.19
- To install Roof Top Solar Monocrystalline Panels (129.6KW) ₹ 60.00 lakhs p.19
- Additional Working Capital Requirement ₹ 1100.00 lakhs p.19
- General Corporate Purpose ₹ 530.00 lakhs p.19
- Capital expenditure - To Furnish the Corporate Office building ₹400.00 lakhs p.88
- Capital expenditure - To purchase Equipments for setting up Seed Testing laboratory ₹150.00 lakhs p.88
- Capital expenditure - To set-up Greenhouse (Fan-Pad System) ₹150.00 lakhs p.88
- Capital expenditure - To install Roof Top Solar Monocrystalline Panels (129.6KW) ₹60.00 lakhs p.88
- Additional Working Capital Requirement ₹1100.00 lakhs p.89
- General Corporate Purpose ₹530.00 lakhs p.89
Issue Structure
- Total Issue
- ₹ 2580.00 Lakhs
- Fresh Issue
- Upto 30,00,000 Equity Shares aggregating to ₹ 2580.00 Lakhs
- Offer for Sale
- NIL
- Price Band
- ₹ 86 per Equity Share (including a Share premium of ₹ 76 per Equity Share)
- Lot Size
- Market lot and Trading lot for the Equity Share is 1600 and in multiples of 1600 thereafter; subject to a minimum allotment of 1600 Equity Shares
- Face Value
- ₹ 10 each
Business Model
The company processes quality seeds and supplies to farmers through a dealer distribution network. Seeds are sold under the 'Vishwas' brand to dealers, who in turn sell primarily to farmers as end consumers. The company produces seeds through contractual arrangements with Seed Growing Farmers who are provided farm inputs and managed throughout the production process.
Business Segments
Sale of groundnut seeds, the largest contributor to revenue
Sale of cumin seeds, the second largest contributor to revenue
Production and selling of groundnut seeds including varieties such as Veda and Tejasvini with varying maturity periods, oil content, and disease resistance characteristics
Production and selling of cumin and coriander seeds
Production and selling of hybrid vegetable seeds including chilli, tomato, brinjal, watermelon, sweet corn, muskmelon, cabbage, cauliflower, bottle gourd, bitter gourd, ridge gourd, sponge gourd, cucumber, onion, cluster bean, cowpea, radish, pea, and bean
Production and selling of field crop seeds including wheat, soybean, pigeon pea, green gram, black gram, sesamum, and others
Production and selling of research hybrid seeds for cotton, castor, pearl millet, and maize with specific characteristics and disease resistance
Processing and supply of seeds for field crops including groundnut, soybean, wheat, cumin, green gram, black gram and other crops
Processing and supply of hybrid seeds for cotton, castor, pearl millet, maize
Processing and supply of hybrid vegetable seeds including chilli, tomato, brinjal, watermelon, sweet corn, cabbage, onion and other vegetables
Production and sale of groundnut seeds to farmers
SWOT Analysis
Strengths
- • Early-stage company with established presence in seed processing and distribution(p.18)
- • Recent capital investment in modern facilities and infrastructure(p.18)
- • Strong promoter backing and continuity with experienced management(p.18)
- • Leverage industry tailwinds with significant expected market growth(p.18)
- • Integrated seed processing facility with cold storage and warehouse(p.126)
- • Wide product portfolio with 75+ crop varieties(p.126)
- • Experienced management team from farming background(p.126)
- • Strong distributor network across western India(p.127)
- • Consistent profitability and revenue growth(p.126)
- • Established brand name in hybrid seeds market with farmer trust(p.147)
- • Modern processing facility with advanced seed treatment technology(p.222)
- • Significant storage and processing capacity(p.147)
- • Experienced promoter with farmer background providing strong distribution network(p.157)
- • Diverse product portfolio across multiple crop types and geographies(p.157)
- • Strong financial performance with improving profitability(p.215)
- • Established distribution network for high-quality seeds to farmers(p.224)
- • Strong profitability growth with PAT increasing 115% YoY(p.226)
- • Improving gross profit margins from cost management(p.226)
- • Significant revenue growth from Groundnut Seeds driven by MSP incentives(p.226)
- • Improved cash generation from operating activities(p.228)
Weaknesses
- • High dependence on groundnut and cumin seeds with significant product concentration risk(p.26)
- • Substantial reliance on few major customers creating payment and business continuity risk(p.29)
- • High working capital requirements with significant inventory and receivables concentration(p.25)
- • Significant debt burden with secured borrowings and personal guarantees from promoters(p.32)
- • Corporate guarantees provided to related company creating contingent liability exposure(p.25)
- • Conflict of interest and competition from related party entities without non-compete agreements(p.26)
- • Recent operational relocation from Gondal to Ahmedabad with capacity utilization uncertainty(p.35)
- • History of statutory compliance delays and filing lapses(p.29)
- • High dependence on few core crops (groundnut and cumin)(p.144)
- • Recent relocation from Rajkot to Ahmedabad with operational transition risks(p.125)
- • Limited geographic presence confined to western India(p.126)
- • Previously dependent on job work outsourcing for seed processing(p.143)
- • High debt-to-equity ratio indicating significant leverage(p.216)
- • Dependence on limited number of major promoter shareholders(p.173)
- • Concentration of business in limited geographic regions(p.157)
- • Short operating history with newly commissioned facility(p.157)
- • High customer concentration with top 10 customers representing 29.48% of revenue(p.230)
- • Significant supplier concentration with top 10 suppliers representing 26.08% of purchases(p.230)
- • High financial leverage with total debt to equity ratio of 1.52 pre-issue(p.232)
- • Substantial increase in unsecured borrowings from zero to ₹81 crores(p.233)
Opportunities
- • Strategic expansion plan to enhance production capacity and infrastructure(p.19)
- • Significant working capital augmentation to support growth(p.19)
- • Implementation of sustainable energy solutions to reduce operating costs(p.19)
- • Expansion of distribution network and market reach via public listing(p.19)
- • Planned expansion to Madhya Pradesh and Rajasthan markets(p.101)
- • Setup of in-house seed testing laboratory for R&D and product innovation(p.90)
- • Growing Indian seed market with strong projected CAGR(p.123)
- • Hybrid seed market growth driven by higher productivity(p.121)
- • Installation of solar panels to reduce operational costs(p.90)
- • National Seed Policy support for sector development and growth(p.150)
- • Deregulation of seeds under Essential Commodities Act creating business flexibility(p.151)
- • Expansion potential to new geographic markets and crop varieties(p.157)
- • Growing Indian agriculture sector and farmer demand for quality seeds(p.150)
- • Expansion into new geographic markets with seed dealer licenses across multiple states(p.240)
- • Capacity expansion through capital investments in sorting, grading, cold storage and warehousing(p.233)
- • Growth from government price support mechanisms for agricultural seeds(p.226)
- • Migration to main board from SME platform with potential for further capital raises(p.260)
Threats
- • Seasonal business volatility affecting revenue and cash flows(p.27)
- • Weather-dependent production risks including crop diseases and pest attacks(p.33)
- • Intense competition from both organized and unorganized players(p.35)
- • Price volatility in agricultural commodity markets affecting input costs(p.24)
- • Regulatory and policy changes affecting seed industry operations(p.34)
- • Dependence on third-party transportation with cost inflation risks(p.37)
- • Potential seed quality and product defect liability exposure(p.33)
- • Farmer contract dependence with limited enforcement under PPV&FR Act(p.31)
- • Macroeconomic headwinds including inflation, interest rate changes, and currency volatility(p.16)
- • COVID-19 pandemic and future health crisis uncertainties(p.45)
- • Seasonal and weather-dependent agricultural demand(p.123)
- • Monsoon and climate variability impact on crop yields(p.120)
- • Competitive seed market with fragmented players(p.122)
- • Government regulatory changes in seed industry(p.65)
- • Input price volatility affecting seed production costs(p.89)
- • Regulatory compliance requirements across multiple central and state laws(p.149)
- • Dependence on monsoon and agricultural commodity price volatility(p.199)
- • Competition from established seed companies and new market entrants(p.149)
- • Stringent food safety and quality standards compliance burden(p.150)
- • Input cost inflation and supply chain disruptions affecting margins(p.223)
- • Dependence on agricultural commodity prices and monsoon patterns affecting demand(p.219)
- • Agricultural regulatory risks including seed licensing requirements(p.240)
- • Competitive pressures from other seed companies and agricultural input suppliers(p.224)
- • Foreign exchange and commodity input price volatility(p.225)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Ashokbhai Sibabhai Gajera | Key Promoter / Managing Director | 10% | — |
| Mr. Bharatbhai Sibabhai Gajera | Promoter / Executive Director | 10% | — |
| Mr. Dineshbhai Madhabhai Suvagiya | Key Promoter / Executive Director & CFO | 10% | — |
| Ms. Ilaben Pareshbhai Patel | Promoter | 10% | — |
| Mr. Kalubhai Maganbhai Vekariya | Promoter | 10% | — |
| Mr. Maheshbhai Sibabhai Gajera | Promoter | 10% | — |
| Mr. Ketankumar Babulal Suvagiya | Promoter | 10% | — |
| Mr. Babubhai Laljibhai Suvagiya | Promoter | 10% | — |
| Mr. Rameshbhai Laljibhai Suvagiya | Promoter | 10% | — |
| Mr. Shivlal Veljibhai Bhanderi | Promoter | 10% | — |
| Ashokbhai Shibabhai Gajera | Promoter | 10.00% | 7.00% |
| Babulal Laljibhai Suvagiya | Promoter | 10.00% | 7.00% |
| Bharatbhai Shibabhai Gajera | Promoter | 10.00% | 7.00% |
| Dineshbhai Madhabhai Suvagiya | Promoter | 10.00% | 7.00% |
| Ilaben Pareshbhai Patel | Promoter | 10.00% | 7.00% |
| Kalubhai Maganbhai Vekaria | Promoter | 10.00% | 7.00% |
| Ketankumar Babulal Suvagiya | Promoter | 10.00% | 7.00% |
| Maheshbhai Shibabhai Gajera | Promoter | 10.00% | 7.00% |
| Rameshbhai Laljibhai Suvagiya | Promoter | 10.00% | 7.00% |
| Shivlalbhai Veljibhai Bhanderi | Promoter | 10.00% | 7.00% |
| Mr. Ashokbhai Sibabhai Gajera | Promoter | 10% | — |
| Mr. Bharatbhai Sibabhai Gajera | Promoter | 10% | — |
| Mr. Dineshbhai Madhabhai Suvagiya | Promoter | 10% | — |
| Ms. Ilaben Pareshbhai Patel | Promoter | 10% | — |
| Mr. Kalubhai Maganbhai Vekariya | Promoter | 10% | — |
| Mr. Maheshbhai Sibabhai Gajera | Promoter | 10% | — |
| Mr. Ketankumar Babulal Suvagiya | Promoter | 10% | — |
| Mr. Babubhai Laljibhai Suvagiya | Promoter | 10% | — |
| Mr. Rameshbhai Laljibhai Suvagiya | Promoter | 10% | — |
| Mr. Shivlal Veljibhai Bhanderi | Promoter | 10% | — |
| Ashokbhai Shibabhai Gajera | Promoter/Managing Director | — | — |
| Bharatbhai Shibabhai Gajera | Promoter/Executive Director | — | — |
Leadership
Mr. Ashokbhai Sibabhai Gajera · Managing Director
Mr. Dineshbhai Madhabhai Suvagiya · Executive Director & CFO
Mr. Bharatbhai Sibabhai Gajera · Executive Director
Ms. Karina Dipak Chandwani · Company Secretary and Compliance Officer
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.
Vishwas Agri Seeds IPO FAQs
What is the lot size of Vishwas Agri Seeds IPO?
The minimum lot size of Vishwas Agri Seeds IPO is 1,600 shares. One lot costs ₹1,37,600 at the cut-off price.
When does Vishwas Agri Seeds IPO open and close?
Vishwas Agri Seeds IPO opened for subscription on 21 Mar 2024 and closed on 26 Mar 2024.
What is the listing date of Vishwas Agri Seeds IPO?
Vishwas Agri Seeds IPO listed on 01 Apr 2024.