Sheetal Universal was incorporated with the object of sourcing, processing and supplying agricultural commodities like peanuts, sesame seeds, spices and grains to cater to the manufacturer of peanut butter, biscuits, cakes, chocolate and food products. The company also started building its own processing line for peanuts in FY 2017. The following year, they started processing sesame seeds and spices and added high-tech machinery for cleaning, destoning, gravity separator, and colour sorting. In addition to this, the company has 2 subsidiaries, which are processors and exporters of agricultural commodities like oil seed, grains, etc.
Over the years, the company has established a regular customer base in various countries such as the Russian Federation, Indonesia, Malaysia, Vietnam, UAE, Iran, Algeria, Israel, Turkey, Egypt, etc. Sheetal Universal is a member of the Agricultural and Processed Food Products Export Development Authority and the Indian Oil Seeds and Produce Export Promotion Council.
In the past 5 years, the Indian food processing industry has grown rapidly
with an average annual growth rate of 8.3% and it is expected to reach $535 billion by 2025-26. With a market size of $866 billion in 2022, the domestic food market is projected to grow at a rough CAGR of 8.01% between 2022 and 2027, reaching $1,274 billion. With both the food and food processing markets expected to grow significantly, Sheetal Universal can have an opportunity for sustained growth in the coming years.
Sheetal Universal Ltd IPO Details
Sheetal Universal Ltd IPO Date
The dates for bidding for the Sheetal Universal IPO are December 4, 2023, to December 6, 2023.
Sheetal Universal Ltd IPO Price Band
Sheetal Universal is a fixed price IPO. The exact price is ₹70 per share.
Sheetal Universal Ltd IPO Lot Size
The Sheetal Universal Ltd IPO lot size is 2,000 shares per lot.
Sheetal Universal Ltd IPO Objectives
The company proposes to use the net proceeds from the fresh issue towards:
- Funding capital expenditures
- Working capital requirements
- General corporate purposes
- To meet public issue expenses
Peer Details
The company does not have any listed peers.
How To Check the Allotment Status of the Sheetal Universal Ltd IPO?
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Contact Details of Sheetal Universal Ltd
Registered office: Office No. 348, 2nd Floor, ISCON Mall, 150 Feet Ring Road, Rajkot - 360005, Gujarat, India.
Phone: +91 9099302638
E-mail: cs@sheetaluniversal.com
Company Financials
| Particulars (₹ in lakh) | Year Ending on March 31, 2023 | Year ending on March 31, 2022 | Year ending on March 31, 2021 |
|---|---|---|---|
| Total Income | 13,165.68 | 3,983.67 | 3,883.53 |
| Profit After Tax | 198.85 | 28.31 | 25.41 |
| Current Ratio | 1.25 | 1.41 | 1.58 |
| Return on Capital Employed | 21.59% | 6.99% | 7.28% |
Know before investing
Strengths
3The company’s processing unit is located near Rajkot in Gujarat. Gujarat is a hub of peanuts, ground nuts, seeds, sesame, and chickpea production. It is also near the major ports of Mundra, Pipavav and Kandla. Therefore, the company has a locational advantage.
The promoters of the company have around 8 years of experience in this field and they have developed strong customer relationships over this period, including abroad.
In the near future, they are planning to set up a manufacturing facility to make defatted protein powder and extract cold press oil for the domestic market and export market. These new markets can be significant opportunities for growth in the future.
Risks
3The company’s production costs depend on the price of agricultural commodities. These prices may fluctuate due to a wide variety of factors beyond their control, such as global supply and demand, supply of raw materials, weather, crop yields, and governmental regulation. This may affect the company’s profits and supply chain in the future.
Their top 10 suppliers contributed 31.28%, 43.75%, and 33.36% of their total purchases for the year ended on March 31, 2023, March 31, 2022 and March 31, 2021, respectively. This may indicate a significant degree of concentration of sources of raw material, which may pose a risk to the company’s supply chain.
The company does not have any long-term agreements with its customers. This may pose a risk to stable growth in the revenue of the company.
