Soni Soya Products Limited (SSPL) is incorporated in 2014. It is Indore based company. This company has amassed a phenomenal insight into the processing of agricultural produce and in trading. SSPL’s initial public offering is open from today and investors can apply for the same. So we will present the Soni Soya Products Limited IPO Review based on the draft red herring prospectus submitted to SEBI.
About Soni Soya Products Limited IPO :
- IPO Opens on – March 28, 2018.
- IPO Closes on – April 4, 2018.
- Face Value – Rs. 10 Per Equity Share.
- Issue Price – Rs. 25 Per Equity Share.
- Issue Type – Fixed Price Issue IPO.
- Market Lot – 6000 Shares.
- Minimum Order Quantity – 6000 Shares.
- Issue Size – 1,800,000 Equity Shares of Rs 10 aggregating up to Rs 4.50 Cr.
- Listing Exchange – NSE SME Exchange.
- Draft Prospectus – Download.
Objectives of the issue:
- Fund Working Capital requirements.
- General Corporate Purposes.
About The Company –
- Soni Soya Products Limited is focussed on the business of processing and trading of organic and non-GMO (genetically modified organisms) agricultural products.
- The genetically modified organisms agricultural products likes soya, maize (corn), wheat, flax seeds and mustard, oil, rice, pulses, herbs, spices, and other grains.
- This company is registered with U.S. Food and Drug Administration pursuant to the Federal Food Drug Cosmetic Act and the FDA Food Safety Modernization Act.
- Soni Soya Products Limited is also registered with Agricultural and Processed Food Products Export Development Authority of Government of India (APEDA) to export such scheduled products as per APEDA Act, 1985.
- This company is equipped with an in-house testing laboratory to test the products.
- Soni Soya Products Limited’s customer base is spread across the globe with presence in countries like Canada, Dubai, South Korea, Sri Lanka, United States of America.
- The majority of sales revenues are through direct exports which contributed to 97.71%, 82.05% and 67.84% for March 31, 2015, 2016, and 2017 respectively.
- This company has 24 employees on its payroll.
Promoters of the company :
- Dilip Kumar Soni, aged 40 years, is the Promoter, Chairman and Managing Director of this company.
- Javed Ali, aged 28 years, is the Promoter and Whole Time Director of this company.
Soni Soya Products Limited IPO Review:
Increasing and decreasing profits are the synopsis of the financial data. So the profitability does not have any consistency. However current earnings per share are at 2.24 and the PE ratio is at 11.16 which are comparable to the industry peers. Hence, our Soni Soya Products Limited IPO Review has a NEUTRAL view on this issue.