Sresta Natural Bioproducts has received Sebi nod for its IPO. Now the company will finally decide about price band, lot and timing.
Sresta Natural Bioproducts Company Details
The brand, ‘24 Mantra’, is the largest brand in the packaged organic food segment (excluding organic packaged food market beverage and packaged tea and coffee) by market share with approximately 29% market share in Fiscal 2020 . It is engaged in the business of procuring, processing, manufacturing, marketing and research and development of organic food products. It is also one of the leading Indian organic food brands in the USA with presence in 39 states across Indian Ethnic Stores and Mainstream Stores and have a presence in a total of 34 countries as of September 30, 2021.
As one of the pioneers in the organic food industry in India its mission is to promote sustainable livelihood for the farmers along with a healthy lifestyle for the consumers and contribute to a better ecology as a whole. It believes that it also play a key role in establishing a healthy ecosystem for organic farming and trade by working in collaboration with the Government of India and certain state governments and other institutions.
It has the highest acreage under organic cultivation among the B2C organic food companies in India and have an extensive sourcing relationship with farmers across 12 states in India. As of September 30, 2021, its procurement network included 34,516 farmers, 190,610 acres (includes land under organic conversion) of certified organic land across 12 states in India, 65 vendors/ companies (including certain organic certified vendors/ companies) and various aggregators.
Among the key players in the organic products market with presence in the packaged food segment, It is present across most of the segments . It offers all types of grocery staples, spices and condiments, edible oils, packaged food, beverages, meal accompaniments, etc. Some of its key ‘centre-of-plate’ products (i.e. products having usage spread across different occasions in a day) all of which
are sold under its ‘24 Mantra’ brand Through its diversified portfolio, it endeavours to be able to provide consumers with an organic alternative to cater to their food product requirements.
‘24 Mantra’ has a strong domestic as well as international presence with an omni-channel distribution network.
As of Fiscal 2021, its domestic sales accounted for 52.13% (i.e. Rs 1,626.67 million) of its revenue from operations whereas export sales accounted for 47.87% (i.e. ? 1,494.01 million) of its revenue from operations.
Its products were available across 1,791 Modern Trade Stores and 5,764 General Trade Stores and leading ecommerce channels like Bigbasket in India as of September 30, 2021 and also present overseas in a total of 958 Mainstream Stores and 964 Indian Ethnic Stores in the USA and it is also present in 33 other countries. It has also leveraged the growth and ease of operations of e-commerce platforms and currently sell its products on leading e-commerce platforms in India including Bigbasket. Its presence across varied channels and geographies helps it cater to the organic food products needs of a host of customers.
It functions under an ‘asset light’ model under which it owns three secondary processing units in India of which two are in Telangana and one in Karnataka and undertake its primary processing at third party facilities located across the country under the supervision and monitoring of its employees which provides us the flexibility to focus on marketing, distribution and sourcing quality produce.
Organic food is expected to grow at a CAGR of approximately 24% between Fiscal 2020 and Fiscal 2025 and is expected to further increase its share to 4% of the overall health and wellness market in India. The global organic food market is expected to grow at 9.4% between CY 2020 and CY 2025 reaching a value of USD 210 billion and contributing a 2.6% share to the total food market
For more information, click www.sresta.com
The Promoters of Sresta Natural Bioproducts
Rajashekar Reddy Seelam, Renuka Seelam & Balasubramanian Narayanan
Sresta Natural Bioproducts IPO Main Objects
The Offer comprises the Fresh Issue by the Company and an Offer for Sale by the Selling Shareholders.
The Net Proceeds are proposed to be utilised towards Funding the working capital requirements of the Company;
Sresta Natural Bioproducts IPO Details
Issue Type: Book Built Issue IPO
Issue : up to ? Shares /Rs (?) Crore
* Fresh Issue of (?) Sh/ Rs.50 Cr
* Offer for Sale Up to 7,030,962 Sh/ Rs. ?Cr
Face Value per share : Rs. 10
Sresta Natural Bioproducts IPO Financial & Analytical Ratios
Earnings per Share 2019-20 Rs 5.18
Earnings per Share 2020-21,Rs 5.69
Earnings per Share 2021-22 6M Rs 0.62
Book Value of the Share as on 30.9.2021 Rs 42.33
Return on Net Worth: 19-20 14.22 %
Return on Net Worth: 20-21: 13.61 %
Return on Net Worth: 20-21 6M : 1.47 %
Equity Shares prior to the IPO : 18,748,858 E Shares
Sresta Natural Bioproducts IPO Peer Comparison:
There are no listed companies in India that are engaged in a business similar to that of this Company
Sresta Natural Bioproducts IPO Lead Managers
J M Financial, Axis Capital
Registrar to Sresta Natural Bioproducts IPO
Kfin Technologies India pvt ltd
Registered Office of Sresta Natural Bioproducts
203, Pavani Annexe, Road No. 2, Banjara Hills, Hyderabad 500 034
Company Secretary & Compliance Officer : Padmasri Samaleti