May 18, 2018
admin
Short Note about the Company:
Qualitative factors
We believe the following business strengths allow us to successfully compete in the industry:
A. Our leading market position in the fast-growing processed shrimp industry;
B. Our presence in the Indian shrimp feed industry;
C. Our program business model and longstanding relationships with major customers;
D. Our integrated supply chain operations comprising high volume raw shrimp procurement capabilities and
quality processing facilities;
E. Economic advantages for our exports to the United States, arising from anti-dumping duty exclusion; and
F. Experienced Management Team.
Detailed about the Industry and About the Company are given in Page bottom boxes.
The promoters :
P. Brahmanandam,
P suryavathi
Main object of the issue is:
The Offer comprises an offer for sale of Equity Shares by the Selling Shareholders.
The objects of the Offer for the Company are to achieve the benefit of listing the Equity Shares on the Stock Exchanges and for the sale of Equity Shares by the Selling Shareholders. Further, the Company expects that listing of Equity Shares will enhance its stability and brand image and provide liquidity to its existing Shareholders.
IPO Particulars:
IPO Opens on : ?
IPO Closes on 😕
Issue Type: Book Built Issue IPO
IPO Size:
Up to [●] Equity Shares aggregating up to Rs 900 Crore
Face Value: INR 2 per share
Price Band: Per Equity Share: Not declared
Minimum Order Quantity: ?
Listing will at: BSE,NSE
Shares offered to
Anchors ? Shares = INR ? Crs
QIB ? Shares = INR ?Crs
NII ?Shares = INR ?Crs
RII ?Shares = INR ?Crs (Lot size: 20 = ? Forms)
Tentative timeTable:
? – Price Band announced
? – Anchor List
? – Offer Opens
? – Offer Closes
?– Finalisation of Basis of Allotment
?– Unblocking of ASBA
?– Credit to Demat Accounts
?– Listing on NSE & BSE
Financials:
Total Income of 2016-17 INR 1625.16 Crore
Total Income of 2017-18(9M) INR 1465.18 Crore
Operating profit margin 16-17 9.93%
Operating profit margin 17-18 9M:14.74%
Earnings per Share (EPS) 16-17 INR 21.81
Earnings per Share (EPS) 17-18 (9M) INR23.60
Equity Capital as on 30.9.2017 INR Crore
Equity Capital after the IPO: ? shares Rs.?
Upper Price Band/last EPS: ?
Book Value of the Share as on 31.03.2017 INR 103.94
Upper offer price/Book Value Ratio:
Return on Net Worth: ? %
Peer Comparison:
Apex Frozen Foods Limited Total Income Rs 7,096.82mn PE Ratio69.64
Avanti Feeds Limited Total Income Rs. 27,544.73mn PERatio 51.13
The Waterbase Limited Total Income Rs.3,234.23 PERatio 113.67
Lead Managers:
Kotak Mahindra Capital Company Limited
Axis Capital Limited
ICICI Securities Limited
Registrar to the IPO:
Karvy Computershare Private Limited
Registrered Office of the Company :
Total Subscription:
on Day 1(on 00.00.2018 at 17.00 IST)
QIB : shares offered:xx Subscribed
NII : Shares offered: xx Subscribed : xx
RII : Shares offered : XX Subscribed : xx
Total : Shares offered :XX Subscribed : xx
IPO Analysis by Experts / Fund Managers
Seafood products can generally be classified as capture fisheries (comprising aquatic species from natural water bodies such as the sea, lakes, ponds, etc.) and aquaculture (comprising species cultivated in aquaculture farms under controlled conditions). Within aquaculture, species can be cultivated in marine, fresh or brackish water. Both capture fisheries and aquaculture can be sold in fresh, frozen, or in value-added form (such as prepared,
preserved or cured).
According to CRISIL Research, seafood accounted for approximately 24% share of global consumption from animal protein obtained from meat and dairy in 2016. Global demand for seafood has risen because of rising population and incomes, availability of a variety of fish, and high protein content.
Global seafood consumption also had a CAGR of 2.2%, growing to an estimated 176.7 million MT in 2017. CRISIL Research expects per capita seafood consumption to grow at 0.6%, and global seafood consumption to slow down to 1.2% CAGR over the next decade (i.e. 2017 to 2026). Growing world population, rising incomes, urbanisation, and improved distribution channels are expected to provide further cushion to global consumption growth.
CRISIL Research notes that over 2007 to 2017, per capita seafood consumption increased from 17.8 kg to 20.8 kg, and expects this to increase to 21.6 kg by 2026.
Asia has been the major consumption centre for seafood, accounting for around two-thirds share of global seafood consumption during 2017 followed by the OECD countries at 23% and Europe at 11%. China, Indonesia and India were the top three seafood consuming nations, accounting for 48% of total consumption as per provisional estimates of
Together, these three countries accounted for nearly 59% of world aquaculture production by volume. The other major aquaculture producing countries are Vietnam and Bangladesh, which together with China, Indonesia and India, account for approximately 82% of world aquaculture production by volume
There are two sources for global shrimp production, namely capture fisheries and aquaculture. Until the 1960s and 1970s, the capture of shrimp was the key source contributing to global production, until overfishing and a high bycatch ratio led to a reduction in harvests and consequently a declining share in shrimp production. On the other hand, large-scale commercial shrimp farming started gaining prominence, especially in Asia.
In the last decade, aquaculture production has overtaken capture shrimp production. In 2017, shrimp and prawn production was the highest-ever production recorded. The share of aquaculture shrimp production stood at 72% of the global shrimp production in 2017 with a CAGR of 5.5% between 2010 and 2017. This has mainly been due to the improved quality of feed, higher raw material availability, better disease management, government support
for aquaculture for shrimps, developing new markets and higher realisation for produce.
CRISIL Research expects shrimp production, in particular, to grow over the next decade. In 2017, CRISIL Research estimated shrimp production was at its highest ever recorded levels of approximately 6.0 million MT. CRISIL Research notes that growth in global shrimp production during 2010-2017 (estimated) stood at a CAGR of 4.4%. Based on the OECD-FAO 2017-2026 Report, shrimp production is expected to increase to 7.0-7.5 million MT by 2026, i.e. a CAGR of 2.0-2.5%.
After being the one of the most-traded seafood products for decades, shrimp now ranks the second in terms of value. Shrimp and prawns are mainly produced in developing countries, and much of this production enters international trade. In certain countries like China, higher domestic consumption limits exports. China, Indonesia, India, Ecuador and Vietnam are among the five leading nations for shrimp production as of 2015 (Source: FAO). While China’s shrimp production grew at a CAGR of 4.2% during 2010-2015, CRISIL Research expects China to continue its growth trajectory due to strong domestic demand. Indonesia’s production
has stagnated during 2013 to 2015, mainly due to the outbreak of disease and unsuitable weather conditions. Ecuador’s zero tariff towards exports to the EU, as part of the EU-Ecuador trade agreement, pushed up shrimp demand, leading production to grow at a CAGR of 12% during 2010-2015.