Vishwaraj Sugar Industries IPO Review, DRHP, GMP

Vishwaraj Sugar Industries IPO

Vishwaraj Sugar Industries Limited is engaged in manufacturing of sugar and other allied products. Now, this is a Karnataka based company. So, this content is about Vishwaraj Sugar Industries IPO Review, DRHP, GMP.

Vishwaraj Sugar Industries Issue Details :

Now, let’s start with issue details.

  • IPO Opens on – September 30, 2019.
  • IPO Closes on – October 4, 2019.
  • Face Value – Rs. 10 Per Equity Share.
  • Issue Price – Rs. 775 – Rs. 780 Per Equity Share.
  • Issue Type – Book Built Issue IPO.
  • Market Lot – 240
  • Minimum Order Quantity – 240
  • Issue Size – 10,000,000 Eq Shares of Rs 10 (aggregating up to Rs 60.00 Cr).
  • Fresh Issue – 3,000,000 Eq Shares of Rs 10 (aggregating up to Rs [.] Cr).
  • Offer for Sale – 7,000,000 Eq Shares of Rs 10 (aggregating up to Rs [.] Cr).
  • Listing Exchange – BSE, NSE.
  • Draft Prospectus – Click Here

Objectives of the issue of the Company :

  • Funding working capital requirement.
  • General corporate purpose.

About The Company –

  • So, Vishwaraj Sugar Industries Limited was incorporated in 1995. Now, let’s have a look at the other information below.
  • Besides this, the other allied products manufactured by this company are Extra-Neutral Spirits, Vinegar, Rectified Spirits, Indian Made Liquor, Carbon dioxide (CO2), and Compost.
  • Vishwaraj Sugar Industries Limited also generates power from sugars byproducts for captive consumption and commercial sale.
  • Broadly, the business of this company can be divided into five categories, which are Vinegar, Indian Made Liquor (IML), Co-Generation, Distillery, and Sugar.
  • However, the products of Vishwaraj Sugar Industries Limited such as rectified spirit, ethanol, and extra neutral spirit come in the distillery product segment.
  • Now, this company has laboratories to test the quality standards of the products and reduce the wastage.
  • Therefore, every single output and residue from sugarcane juice is used by Vishwaraj Sugar Industries Limited and nothing is wasted.
  • Here, this company has produced 32,170 tonnes of sugar in the last financial year.
  • However, Vishwaraj Sugar Industries Limited began bottling of Indian Made Liquor.
  • So, this company integrated unit processes sugar canes to produce sugar and the by-products are used to generate electricity for captive use and commercial sale, manufacture rectified spirit, ENA, IML, Vinegar, Press-mud and Compost.

LOCATION :

Register Address : Bellad Bagewadi, Taluka Hukkeri,
District – Belgaum, 591305.
Tel. No. : +91 – 8333 – 251251
Fax No. : +91 – 8333 – 251322
Email : [email protected]

The promoter of Vishwaraj Sugar Industries :

  • Mr. Umesh Katti, aged 58 years, is the founding Promoter of this Company.
  • Mr. Ramesh Vishwanath Katti, aged 53 years, is a Promoter of the Company.
  • Sheela Katti, aged 51 years, is one of the Promoters of this Company.
  • Jayashree Katti, aged 47 years, is one of the Promoters of the Company.
  • Mr. Nikhil Katti, aged 34 years, is a Promoter and the Managing Director of this Company.
  • Mr. Lava Katti, aged 31 years, is a Promoter and Whole-time Director of the Company.
  • Mr. Kush Katti, aged 31 years, is a Promoter and Whole-time Director of this Company.
  • Sneha Nithin Dev, aged 32 years, is the Promoter of the Company.

The Board of Directors of this company :

  • Mr. Umesh Katti, aged 58 years, is the founding Promoter of this Company.
  • Mr. Nikhil Katti, aged 34 years, is a Promoter and the Managing Director of the Company.
  • Mr. Mallikarjun Pujar, aged 55 years, is a Whole Time Director of this Company.
  • Mr. Lava Katti, aged 31 years, is a Promoter and Whole-time Director of the Company.
  • Mr. Kush Katti, aged 31 years, is a Promoter and Whole-time Director of this Company.
  • Mr. Surendra Khot, aged 72 years, is the Non-Executive Independent Director of the Company.
  • Mr. Shivanand Tubachi, aged 67 years, is the Non-Executive Independent Director of this Company.
  • Mr. Basavaraj Hagaragi, aged 62 years, is the Non-Executive Independent Director of the Company.
  • Mrs. Pratibha Munnolli, aged 32 years, is the Non-Executive Independent Director of this Company.
  • Mr. R.V. Radhakrishna, aged 45 years, is the Non-Executive Independent Director of the Company.

Business strategies of Vishwaraj Sugar Industries :

  • Increasing operational efficiency.
  • Explore possibilities of geographical expansion.
  • Addition of new IML products.
  • Augment their fund based capacities in order to scale up business operations.

Competitive Strengths of this company :

  • Experienced Promoters and a strong Executive Team.
  • Wide range of products.
  • Integrated operations and economies of scale.
  • Strong Technological Capabilities.
  • The strategic location of the manufacturing unit.

Company Financials :

So, here are the financial details. This is one of the most vital sections in any type of IPO. Hence, in IPO review, company financial is has to have an impact on the analytical part. Now, have a look at this.

vishwaraj sugar industries ipo review

Vishwaraj Sugar Industries IPO Review :

Here, look at the above attached financial statement. There previous four years records are given. However, though among these years, some are pretty good achievements, in the FY17, 16 the profit is lower compared to other years. Now, let’s have a look at the DRHP (draft red herring prospectus) of the company. However, as of March 31, 2017, EPS (earnings per share) was 2.54. The company as not given PE ratio in their prospectus. RoNW (return on net worth) was 3.60%. NAV/Share was at 70.66 (as of FY17). Therefore, based on the data, Vishwaraj Sugar Industries IPO Review carries a NEUTRAL view.

Here, another important point is the Grey market premium which helps to analyze IPOs. So, one must wait until the IPO issue price is announced before taking a vital investment decision. However, you may go through our blog the Grey Market Premium details from our site.

However, besides the above-listed information, from the issue opening date, you can alternatively check the NSE bid details. Now, if you want, you can also go through our past article for getting a step-by-step guide on how to apply in a new issue.

Author: Ankita Sarkar

Ankita is a graduate in English language and she has also done her MBA from the Calcutta University. She has a high knack in the stock markets. She is a NISM certified Research Analyst. An experienced stock market content writer Ankita is also trading successfully on her own account.

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