Headquartered in Ranchi, Jharkhand, Sri Krishna Metcom Limited was incorporated in 2008. The company is engaged in manufacturing and marketing of packaged Basmati rice in different brand names. The company has recently applied for SME IPO. Sri Krishna Metcom Limited IPO review will look into the draft prospectus and present a detailed review to help investors interested in this issue.
About the issue – Sri Krishna Metcom Limited IPO review finds the details of NSE SME IPO from the DRHP submitted to NSE.
- Issue opens on – 14 September 2017
- Issue closes on – 18 September 2017
- Issue type – Fixed price issue IPO
- Issue price – Rs 55 per equity share
- Face Value – Rs 10 per equity share
- Issue size – 3,500,000 nos. of equity shares aggregating up to Rs 19.25 crores
- Market lot – A minimum of 2000 share and in multiples thereof
- Listing Exchange – NSE SME Exchange
The net proceeds from this issue will be used to – a) fulfill the working capital requirement and b) invest to increase brand image and market exposure.
About the company – Sri Krishna Metcom Limited is one of the largest company in India engaged in processing, milling and marketing Basmati and non-Basmati rice in India. Sri Krishna Metcom Limited has a large capacity for rice milling of 350 tonnes per day in the state of Jharkhand. The company also sells rice bran oil, a by product from rice milling to oil retailers and whole sellers. The company markets its packaged products under brand names of BABA, SINGHAM, PANCHKANYA and MIDDU BHAI. Their rice milling machinery is of international standards employing latest state of art Swiss Technology from Buhler’s, Switzerland.
Company Financials – Sri Krishna Metcom Limited IPO review finds the following consolidated financial statement from the draft prospectus submitted to NSE.
Conclusion – The financial statement shows that the net profit has been rising but not consistently, from fiscal 13 expect fiscal 14 when the company faced a net loss. But the cash flow statement shows the company has long and short term debt. Though most of the times positive cash flows can be seen. Sri Krishna Metcom Limited IPO review finds that investment in this IPO may give better returns if invested with a long term view.
Disclaimer – Views expressed in this review is an educated guess made on the basis of available data from open source expressed for the purpose of knowledge sharing. By no means, it should be taken as an investment advice or recommendation. Investor/ trader should invest money at their own risk.
Partha, an engineer by education, is theoratically actively following the stock and commodity markets since 1990. He is an active trader since 2003. He has received formal education in future and options and quantum analysis. He is presently working on research oriented projects using Python and data analytics.