Continental Seeds and Chemicals Limited (CSCL) is a Delhi based company. This company is engaged in the business of developing, processing, grading and supplying of all kind of agricultural foundation and certified seeds and trading of Mentha Oil. CSCL’s new issue is on the stock exchanges and can be applied until 23rd of this month. Hence, let us do a quick check on the draft red herring prospectus of CSCL to check the issue details and issue price and post our Continental Seeds and Chemicals Ltd IPO Review here.
About Continental Seeds and Chemicals Ltd IPO :
- IPO Opens on – March 21, 2018.
- IPO Closes on – March 23, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 26 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – 4000 Shares.
- Minimum Order Quantity – 4000 Shares.
- Issue Size – 1,620,000 Equity Shares of Rs 10 aggregating up to Rs 4.21 Cr.
- Listing Exchange – BSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- To part finance working capital requirements of the Company.
- To meet General corporate purposes.
- To meet the expenses of the Issue.
About The Company –
- Continental Seeds and Chemicals Limited is incorporated in 1983.
- CSCL has two processing units. The first one is situated at Ram Raj Road, Bazpur, District Udhamsingh Nagar, Uttrakhand, Pin – 262401.The second one is at Village – Rahiya, Opposite Roadways work shop on Kanpur Orai Highway, Orai, District Jallaun, Uttar Pradesh.
- Continental Seeds and Chemicals Limited’s total production capacity is 7080 MT per annum out of which around 45% is currently used.
- This company has 15 employees in its payroll and it also employs temporary workers on per day wages basis.
- Continental Seeds and Chemicals Limited is engaged in the whole process of processing in varieties of seeds, foundation seed and processing of the same into certified seeds.
- This company is doing good business in trading of Mentha Oil and have impressive interference in the field having good relations with big suppliers as well as buyers.
Promoters of the company :
- Mr. Praveen Rastogi, aged 38 years, is Promoter and Managing Director of this company.
Continental Seeds and Chemicals Ltd IPO Review: After a rising profitability from financial year 2013 to financial year 2015 the profits halted at FY 2016. Though the company has managed to return back into profits on FY 2017, still the earnings per share for the FY 2017 is looking static at 1.11. The price to earnings ratio for the last financial year is at 23.42. The advantage for the investors will be the emphasis on agriculture in the last budget while the main disadvantage for this IPO will be the low EPS value. Considering the above factors our Continental Seeds and Chemicals Ltd IPO Review has a NEUTRAL view on this issue. However, risk takers can apply in CSCL issue for a long-term view.