Narmada Agrobase Limited IPO Review

Narmada Agrobase Limited IPO Review

Narmada Agrobase Limited (NAL) is incorporated in 2013. It is an ISO 9001:2015 certified company. This is mainly Gujarat based company. Their initial public offering is open for applying from yesterday, i.e, 28th March. Let me check the draft prospectus of NAL and present the Narmada Agrobase Limited IPO Review based on the issue price and company details.

About Narmada Agrobase Limited IPO :

  • IPO Opens on – March 28, 2018.
  • IPO Closes on – April 11, 2018.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 32 Per Equity Share.
  • Issue Type – Fixed Price Issue IPO.
  • Market Lot – 4000 Shares.
  • Minimum Order Quantity – 4000 Shares.
  • Issue Size – 2,340,000 Equity Shares of Rs 10 aggregating up to Rs 7.48 Cr.
  • Listing Exchange – NSE SME Exchange.
  • Draft Prospectus – Download.

Objectives of the issue:

  • To Meet Working Capital Requirement.
  • General Corporate Purpose.
  • To Meet the Issue Expenses

About The Company –

  • Narmada Agrobase Limited’s products manufactured by the company are used for the feeding of cattle which is provides a high amount of proteins and other nutrients required by the company.
  • This company’s quality products has several uses like meal can be used for fertilizers and animal feed, cotton linters which is by product cotton seed which can be used in various industries like furniture, paper, yarns, absorbent cotton etc.
  • Narmada Agrobase Limited is engaged in manufacturing and processing of cotton seed meal cake, cattle feed and soya bean meal.
  • The by-products of company’s products are also used in textiles Industry, Consumer Goods Industry, and Paper Industry.
  • Narmada Agrobase Limited manufactures and exports its products under the brand name of “Churma” and “Gaay Chhaap Narmada Pashu Aahar”.
  • This company are manufacturer and exporter of cotton seed meal, guar meal, delinted cotton seed, organic fertilizers and cattle feed under own brand name of “Churma”and “Gaay Chhaap Narmada Pashu Aahar”.
  • Narmada Agrobase Limited also hires contract labor in the factories as per requirement.

Narmada Agrobase Limited

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Promoters of the company :

  • Mr. Neerajkumar Sureshchandra Agrawal, 41 years is Chairman and Managing Director and also the Promoter of this company.
  • Mr. Suresh Chandra Gupta aged 65 years, is the Whole Time Director of this company.

Company Financials:

Narmada Agrobase Limited IPO

Narmada Agrobase Limited IPO Review:

Starting from a loss on the financial year 2014 NAL has managed to turn around and post decent profits in the years after. But the earnings per share are on the lower side at 0.85. The PE ratio is at 37.65. Hence at the issue price of Rs. 32 per equity share the issue looks aggressively priced. Our Narmada Agrobase Limited IPO Review has a NEUTRAL review on this IPO. If you want to invest in NAL, you can do so at your own risk.

Author: Ankita Chakraborty

Ankita has done her Diploma Engineering in Computer Science & Technology. She is pursuing her degree in Engineering and also well experienced in the equity market and real estate related content writing. She is the one who has developed the technical indicators section of our site.

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