Sarveshwar Foods Ltd is incorporated in 2015. This company offers procurement, storage, milling, sorting, packaging, branding and distribution of Rice. The operations of this company are based out of the Jammu Region in the State of Jammu and Kashmir. Sarveshwar Foods are going to launch their initial public offering to be listed on the stock exchanges on the first week of next month. So let us go through the DRHP of the company and consider the issue date and issue price to post our Sarveshwar Foods Ltd IPO Review for the investors.
About Sarveshwar Foods Ltd IPO :
- IPO Opens on – March 5, 2018.
- IPO Closes on – March 7, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 83 – Rs. 85 Per Equity Share.
- Issue Type – Book Built Issue IPO.
- Retail Allocation – 50%
- Market Lot – 1600 Shares.
- Minimum Order Quantity – 1600 Shares.
- Issue Size – 6,467,200 Equity Shares of Rs 10 aggregating up to Rs 54.97 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Part finance long term working capital requirement.
- Invest in subsidiary.
- General Corporate Purpose.
- Meet the expenses of the issue.
- Sarveshwar Foods Ltd is engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets.
- The product of this company which is comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice.
- Sarveshwar Foods Ltd is also along with the varied variety of conventional Basmati and non-Basmati rice their product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products.
- Sarveshwar Foods market and distributes these organic food products under its brand “Nimbark”.
- This company procures Basmati and non-Basmati paddy from Punjab, Haryana, Himachal Pradesh, Uttar Pradesh and Delhi.
- Sarveshwar Foods Ltd is selling organic products through this store viz. rice, red rice, brown rice, flours, pulses, nuts and dry fruits, spices and condiments, jaggery and sugar, breakfast cereals, edible oils, saffron, flaxseed, sesame seed.
- Mr. Rohit Gupta, aged 47 years, is the Promoter and Managing Director of this company.
Sarveshwar Foods Ltd IPO Review: The company has a very nice financial figure in terms of profitability. Their profits have increased steadily over the years starting from the financial year 2013 to the financial year 2017. The issue is fully priced at the issue price of Rs. 83 – Rs. 85 per equity share. At the issue price, the earnings per share are just above 7 and the PE ratio is between 11 to 12. Hence, our Sarveshwar Foods Ltd IPO Review has a POSITIVE view on this issue. We feel cash-rich investors may apply and can expect decent gains with a long-term view.