Vishwas Agri Seeds Ltd started its business in the city of Gondal near Rajkot, Gujarat in year 2009. Initially started with a small-scale seed processing unit in Gondal, Rajkot. Today Vishwas Agri Seeds Limited is in the business of processing quality seeds and supplying them to farmers via their distribution network. The company sells its seeds under the brand name "Vishwas".
Their seeds processing unit is equipped with an optical sorting machine, which detects unwanted colours, subtle discolouration, size and shape defects, and foreign materials. Further, their seeds undergo a seed treatment process where seeds are processed by application of fungicide, insecticide, or a combination of both, so as to disinfect them from seed-borne or soil-borne pathogenic organisms and storage insects. As of March 31, 2023, they produced seeds for more than 40 different field crops, and vegetables. They have a presence in the states of Gujarat, Maharashtra, and Rajasthan via their sales and distribution network.
The seed industry in India has reached $6.3 billion in 2022. In the coming years, the market is set to reach $12.7 billion by 2028, exhibiting a CAGR of 12.43% during 2023-2028. An organised player like Vishwas Agri Seeds can benefit from such an expansion of the industry.
Vishwas Agri Seeds Ltd IPO Details
Vishwas Agri Seeds Ltd IPO Dates
The dates for bidding for the Vishwas Agri Seeds IPO are March 21, 2024 to March 26, 2024.
Vishwas Agri Seeds Ltd IPO Price Band
Vishwas Agri Seeds is a fixed price IPO. The exact price is ₹86 per share.
Vishwas Agri Seeds Ltd IPO Lot Size
The Vishwas Agri Seeds Ltd IPO lot size is 1,600 shares per lot.
Vishwas Agri Seeds Ltd IPO Objectives
The net proceeds from the IPO are proposed to be utilised towards the following objectives:
- Capital Expenditure to:
- Furnish the corporate office building
- Purchase equipment for setting up Seed Testing Laboratory
- Set up a Greenhouse (Fan-Pad System)
- Install Roof Top Solar Monocrystalline Panels with a capacity of 129.6KW.
- Additional working capital
- General corporate purposes.
Peer Details
The following are the listed peer companies of Vishwas Agri Seeds in India:
- Bombay Super Hybrid Seeds Limited
- Kaveri Seed Company Limited
- Upsurge Seeds of Agriculture Limited
How To Check the Allotment Status of the Vishwas Agri Seeds Ltd IPO?
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Contact Details of Vishwas Agri Seeds Ltd
Registered office: Near Toll Tax, S. No. 460, Gangad Road, Bhayla, Ahmedabad, Bavla, Gujarat, India. - 382220
Phone: +91 6535709174
E-mail: cs@vishwasagriseeds.com
IPO Financials
| Particulars | Year Ending on March 31, 2023 | Year Ending on March 31, 2022 |
|---|---|---|
| Total Revenue (in ₹ lakh) | 6,532.19 | 6,485.80 |
| Net Profit (in ₹ lakh) | 534.14 | 247.94 |
| ROCE | 23.84% | 19.99% |
| ROE | 55.88% | 72.97% |
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Strengths
2Their seeds processing unit is equipped with automated seed sorting, grading and packing machines. Their seeds processing facility includes warehousing and cold storage facilities to store seeds. It helps them meet the demand as per the sowing season.
The company offers a wide range of seeds that includes Groundnut, cotton, Wheat, Cumin, Onion, Coriander, Mustard, corn, etc. They regularly add new product variants which helps them to cater to the needs of a wide range of customers.
Risks
2Their operations are subject to high working capital requirements. Their inability to maintain an optimal level of working capital required for the business may impact their operations adversely.
The sale of Groundnut seeds is the largest contributor towards their total revenue and contributed 46.82%, 60.45% & 37.11% to their revenue from operations in Fiscal 2023, Fiscal 2022 and Fiscal 2021, respectively. This presents over-dependence on a single crop for a large part of their revenue.
