Vishwaraj Sugar Industries IPO plans to raise INR 60 crore by offering 1 crore shares through offer-for-sale and fresh equity issuance. There are 40 farmers associated with the company.
They will be selling 66 lakh shares for raising ₹39.6 crore and the promoters will be selling four lakh shares to raise about ₹2.4 crore.
The promoters of the Company are Umesh Katti, Ramesh Katti, Nikhil Katti, Lava Katti, Kush Katti, Sheela Katti, Jayashree Katti and Sneha Nithin Dev.
Vishwaraj Sugar
The company is operating as an integrated sugar and other allied products manufacturing company operating from Belgaum District in the State of Karnataka which is designated as one of the “High Recovery zones” for sugar production by Government of India.
Wide product range that includes Rectified Spirits, Extra-Neutral Spirits, Indian Made Liquor, Vinegar, Compost, Carbon dioxide, etc. The company produces Potheyr for captive consumption as well as external sale. As a result, the company has five broad segments namely Sugar, Co-Generation, Distillery, Indian Made Liquor and Vinegar
The company has diversified but integrated business model. The company has Captive Power plant
Vishwaraj Sugar IPO Details
The net proceeds will be used for Working Capital Requirements, Offer related expenses and General expenses of the corporate.
- Issue Open: September 30th, 2019 – October 4th, 2019
- Issue Type: Book Built Issue IPO
- Issue Price: Rs 55-Rs 60 Per Equity Share
- Minimum Investment: INR 14,400
- Minimum Order Quantity: 240 Shares
- Equity Shares Offered (Fresh): 3,000,000 eq shares
- Offer for sale: 7,000,000 eq shares
- Listing At: NSE & BSE
- Listing Date: On or Before October 16, 2019
Should you Invest?
The company’s total income rose 15% to ₹308 crore in the year ended March 2019 and it has posted a net loss of ₹18 crore against loss of ₹4 crore on the back of high finance cost of ₹36 crore. The company had also reported the loss of Rs.0.5 crores for FY 15. The company had produced 10 lakh quintals of sugar last year and is carrying an inventory of 5 lakh quintals.
Moreover, there is no revenue growth in the last 5 years and the company has incurred losses for 3 years out of the last 5 financial years. In addition, 70% is Offer for sale, therefore the company would not get any major benefit from this IPO.
The investors may “avoid” Vishwaraj Sugar Industries IPO. You may prefer IRCTC IPO over this.
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