Proventus Agrocom is an integrated health food brand, present across the entire range of dry fruits, nuts, trail mix, berries, seeds, etc. Proventus Agrochem markets healthy snacks under the brand ProV. It has positioned itself as a one-stop shop for customers, operating through a business model of 'farm to home', where it generates streams of revenue from origination to distribution.
The company established its brand in 2017 and is currently selling 100+ SKUs in 15 Indian states. Proventus has a processing unit located in Mahape, Navi Mumbai.
Proventus Agrocom Limited IPO Details
The Proventus Agrocom Ltd. IPO subscription window for retail investors will open on May 24, 2023. It will remain active for two days before closing on May 26, 2023. Fresh issues aggregating up to Rs. 51.80 crore are combined with an offer for sale equity portion worth Rs. 17.74 crore for the IPO offer, aggregating up to Rs. 69.54 crore.
The IPO share price for the fixed price issue has been set at Rs. 771. Retail investors can apply for one lot of 160 shares.
Proventus Agrocom Limited IPO Objective
- The objectives of the Proventus Agrocom IPO are listed below.
- To fund the working capital requirement of the company and its subsidiary
- To meet general corporate purposes
Should you invest in Proventus Agrocom Limited?
Here are a few important reasons to consider before investing in the IPO:
- Proventus offers a wide range of healthy snacking options, including nuts, berries, seeds,and dry fruits in the packaged dry fruit segment.
- The products are offered on websites, e-commerce platforms like Amazon and Flipkart, and retail stores like Demat, More Retail, Metro, Cash & Carry, and local shops.
- The company is present across the value chain, from origination to distribution, creating multiple revenue points.
- The brand is backed by Chef Sanjeev Kapoor and KS Narayanan.
- Higher brand consciousness, growing digitization, changing lifestyles, and a greater focus on healthy and hygienic foods will drive more growth in the market.
Competitive Peers
The other player as recognised by the company in DRHP is Krishival Foods Ltd.
Noteworthy Highlights of Proventus Agrocom Ltd. The company’s revenue from operations grew at 47.99% from FY2020 to FY 2022.
Noteworthy Highlights of Proventus Agrocom Ltd.
- The company’s revenue from operations grew at 47.99% from FY2020 to FY 2022.
Proventus Agrocom Company Financials
| Particulars | Year ending in December 31, 2022 ( Rs. lakhs) | Year ending in March 31, 2022 ( Rs. lakhs) |
|---|---|---|
| Revenue from Operations | 31,789.26 | 40,326.68 |
| Profit After Tax (PAT) | 182.89 | 114.12 |
| EBITDA | 400.33 | 349.91 |
| EBITDA Margin | 0.82% | 1.16% |
Know before investing
Strengths
3It offers a diversified product portfolio, targeting different customer groups.
It is led by experienced promoters.
The company has established a scalable retail model to capitalise on industry growth.
Risks
3Deterioration in product quality can damage the brand’s reputation and business prospects.
Interruptions in the supply chain or non-availability of raw materials can hurt its performance.
The business is environmentally sensitive by nature, and any disruption due to unpredictable weather conditions can adversely affect its performance.
