Vishwas Agri Seeds is set to launch its initial public offering (IPO) very soon. The SME will open bidding on Thursday, 21 March, and will close bidding on Tuesday, 26 March. Before we understand more details, let’s take a look at the company profile. 

About the company:

The company started its business operation in 2010 and is headquartered in Ahmedabad, Gujarat. Licensed under the “Vishwas Seeds” trademark, they offer a variety of product lines, such as hybrid seeds for vegetables and crops. 

Millions of farmers are served by Vishwas Agri Seeds Limited, which supplies 46 crops and 151 products throughout Gujarat and Rajasthan through more than 600 approved dealers and distributors.

Vishwas Agri Seeds IPO Pricing details

The IPO will issue 3 million shares (30Lakh) in total at a price of Rs 86 per share. This implies it is set to raise an amount of Rs 25.8 Cr. 

They will be issuing shares in a lot size of 1,600. Investors can bid in multiples of 1,600 in case they look to purchase more. Hence, the minimum amount required to purchase a lot would be Rs 1,37,600. 

As of now, the shares of Vishwas Agri Seeds are not trading on the grey market premium. This means you could purchase shares for a Rs 0 premium according to Investorgain, as of 19 March. 

Also Read: Pros and Cons of investing in IPO

Allotment & listing details

The allotment for the Vishwas Agri Seeds IPO will likely be done by Wednesday, 27 March. The tentative listing date would be Monday, 1 April, and it will be listed on NSE Emerge, the new initiative by NSE for SME platforms. 

The role of market maker would be assumed by Sunflower Broking. Out of the total issue, 50% has been reserved for retail investors and the remaining for other investors. 

Funding Usage

Close to Rs 4 Cr of the proceeds will be used to furnish the company’s office building. Around Rs 1.5 Cr will be used to buy equipment to set up a seed testing laboratory. 

A greenhouse (fan-pad system) will be set up with another Rs 1.5 Cr and finally rooftop solar monocrystalline panels (129.6 KW) will be installed for Rs 60 Lakhs. 

Company Financials

Here’s the financials of the company

Between March 31, 2022, and March 31, 2023, Vishwas Agri Seeds Limited’s profit after tax (PAT) rose by 115.43%, while revenue increased by 0.72%.

Disclaimer: The above content is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision.

Ever wondered if there was a simple and effective way of identifying multibagger stocks in 2024. You can learn here.