Indo US Biotech IPO – Review, Allotment Status, Subscription, Price, Date & more

Indo Us Biotech IPO is a new SME IPO launching on 30th April 2018. Indo US Biotech, an agriculture seed company based in Gujarat, has come out with an IPO to collect funds worth Rs. 700 Lakhs. It has its own research station, marketing network and seed production bases. Indo US Biotech IPO will be open for subscription till 03 May 2018. The details about the IPO size, IPO offer, the sentiments about this IPO, company’s key financial indicators and other details have been discussed in this article.


Indo US Biotech IPO Review & Ratings

Indo US Biotech IPO Ratings & Review
CriteriaRatings
Industry Sentiments6.2/10
Industry Ranking6.1/10
Company Background6.2/10
Company Reputation6.4/10
Competitive Edge6.3/10
Financial Statements6.2/10
Popularity Index6.4/10
Promoters Reputation6.1/10
Retail Appetite6.5/10
Top Brokers Review6.3/10
Overall Ratings6.3/10
Star Ratings★★★☆☆

Summary of Indo US Biotech IPO

indo us biotech ipoIndo US Biotech is a specialized agriculture seed company based in Gujarat. It is not only into R&D but also in production and marketing. The Company is the recognized seed importer from National Seeds Corporation Limited. At present the company is having collection of around 4460 varieties of germplasm in various crops.

Indo US Biotech is 9001:2015 certified engaged in research plant, breeding products, processing and marketing of sales high performing open pollinated and hybrid agricultural seed varieties.  Their products are being marketed under various brands names like INDO-US 955, INDO-US 936, INDO-US 927 etc.

The company wishes to get listing benefits like visibility, brand building and hence has decided to go for an IPO. The company also plans to use this fund to improvise the working capital and to fund the general corporate expenses.

The IPO is sized at Rs, 700 odd lacs of which Rs. 37 laks have been reserved for the market makers thereby leaving Rs. 690 lacs for the public to subscribe.

Indo US Biotech has been founded by Mr. Jagdish Bhai Ajudia who belongs to a family with farming and agriculture as their family business. Currently, he holds a position of MD and Chairman of the company.

The Company has appointed Swastika Investmart Limited as their book running lead manager for this IPO. The lead managers are based out of Mumbai. The registrar to the offer is Bigshare Services Private Limited, Mumbai


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Indo US Biotech IPO Date

The IPO for Indo US Biotech opens up on Monday, April 30 2018. To Invest in this IPO please share your details.

Indo US Biotech IPO Subscription

 Subscription
Day 1 – 30 April’ 18X
Day 2  – 01 May’ 18X
Day 3   – 02 May’ 18X
Day 4   – 03 May’ 18X

The number of shares subscribed on each day will be updated herein on a daily basis, once the IPO is released.

Indo US Biotech IPO Allotment Status

After subscription process is completed, the company will initiate the allotment procedure. The details of allotments made would be updated herein once the company completes the said process.

Indo US Biotech IPO Price Band

Indo US Biotech IPO has been quoted at a premium of Rs. 41 per equity share. The offer price is Rs. 51 for each equity share. The application can be made in Rs. 1,02,000/- and the multiple of this. The offer price has been decided by the company and the lead manager in consultation with each other.

Indo US Biotech IPO Issue Size

IPO size for Indo US Biotech is Rs. 729.30 lacs. However, certain part of the same has been reserved for the market makers which constitutes Rs. 37.74 lacs. Thus, the net offer for public in general is Rs. 691.56 lacs.

Indo US Biotech IPO Equity Share Offerings

The number of shares being offered under this IPO is 14,30,000. However, this is the total offer. As mentioned above, certain offer has been reserved for market makers – thus, the net offer to public is 13,56,000 equity shares. The total offer is equivalent to 27% of the post issue paid up capital of the company.



Indo US Bio-Tech Limited – Company Overview

Indo US Biotech started its journey way back in 2004, having their own laboratory for seed testing at Junagadh. In
laboratory, it tested the proportion of Enzyme-Linked Immunosorbent Assay (―ELISA‖) available in the seeds.

ELISA tests are primarily used for the detection of proteins in the seeds which helps to fight against the diseases. In the initial stages, the company was mere engaged in the trading of all kind of seeds and mainly agriculture seeds, vegetable seeds, oil seeds etc.

During the tenure of 2004-2011, laboratory for testing seed was mainly in Nagpur, Hyderabad and Gujarat. Indo US Biotech Limited was having laboratory with all modern imported equipments, and an image in the market was set up like ―if seeds are tested and approved in the Laboratory of Indo Us, its approved/certified seed.

In the initial stage at R&D unit, company was engaged in producing different varieties of oil seeds and pulses seeds, later on company also added vegetable, spices and cereals seeds to its basket. Thus, the product profile of the company includes vegetable seeds, oil seeds, pulses seeds, cereal seeds and spices seeds.

Key members of Indo US Bio-Tech Limited:

  • Mr. Jagdish Ajudia, Managing Director
  • Ms. Priyanka Ajudia, Executive Director
  • Mrs. Maltiben Ajudia, Whole-Time Director
  • Mr. Anilkumar Patel, Independent Director
  • Mr. Dhiren Savalia, Independent Director
  • Mr. Gordhanbhai Gangani, Independent Director

Competitive strength of Indo US Bio-Tech Limited:

  • Diversified Product Portfolio
  • Well equipped Research and Development facility
  • Diversified Germplasam Portfolio
  • Established vast Domestic as well as Export market

Business strategy of Indo US Bio-Tech Limited:

  • Continued Investment in R&D activities
  • Continued Promotional Activities/Branding and Marketing Programmes
  • Offering of attractive schemes to farmer with whom company entered in agreement for contract farming
  • Broad base Distribution Network

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Indo US Biotech – Financial Statements

A ready reckoner for the key financial figures of the company from last 5 years:

Assets of the Company

Assets (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset17716816013087
Current Asset1,1161,200608476539
Total Asset1,2941,369768605626

Revenue & PAT of the Company

Revenue & Profits (in INR & Lakhs)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue2,4581,9151,9661,4861,494
Profit after Tax (PAT)6536502630

Earnings per Equity Share

Earning per Equity Share (in INR)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic4.372.424.17NANA
Diluted4.372.424.17NANA

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Indo US Bio-tech Promoters

The company was founded and promoted by Mr. Jagdish Ajudia.He possesses distinction of leading the Company. He is a son of Farmer and is having agricultural background right from the beginning. He has an experience of 28 Years in fields and agriculture seed industries.

Promoter Interest in the company

The promoter, Mr. Jagdish Ajudia, is also a shareholder and MD of the Company. Accordingly, his interest in the company lies to the extent of his remuneration, sitting fee, dividends and any other similar nature pay outs to shareholders, director or promoters.

Promoter Interest in the property of the company

Promoter does not have any interest in any property acquired by the Company in the period of two (2) years
before the release of the latest Prospectus which is 6 April 2018.


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Indo US Biotech IPO Offer Details or Issue Details

Issue of Equity Shares14,30,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 51/- each aggregating to Rs. 729.30 Lakh
Of which:
A) Issue reserved for market makers74,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 51/- each aggregating to Rs. 37.74 Lakh
B) Net issue to the public13,56,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 51/- each aggregating to Rs.691.56 Lakh
Of which:
Retail portion6,78,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 51/- each aggregating to Rs. 345.78 Lakh
Non retail portion6,78,000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 51/- each aggregating to Rs. 345.78 Lakh
Pre and Post-Issue Equity Shares
Equity Shares outstanding prior to this Offer34,24,392 Equity Shares of Rs. 10/- each
Equity Shares outstanding after this Offer48,54,392 Equity Shares of Rs. 10/- each

 


Indo US Bio-Tech IPO Issue Object

The purpose of Indo US Bio-tech IPO is to raise funds for the purpose of :

  • To meet Incremental Working Capital Requirement;
  • General Corporate Purpose; and
  • Meeting Public Issue Expenses

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Indo US Bio-tech IPO – Basis of the Offer Price

The Issue Price has been determined by the Company in consultation with the Lead Manager during the book building process. The offer price has been decided keeping in mind the below discussed qualitative and the quantitative factors. The offer price is derived as Rs. 51 i.e. 5.1 times of the face value of the share.

Qualitative factors influencing the offer price:

  • Diversified Product Portfolio
  • Well equipped Research and Development facility
  • Diversified Germplasam Portfolio
  • Established vast Domestic as well as Export market

Quantitative factors influencing the offer price:

  • Earning per share – The Company has an EPS of 3.69 on the basis of wieghted average of 3 latest financial years. The post bonus EPS is Rs. 1.57. The bonus announcement was done in December 2017.
  • Price/earning ratio – Based on the EPS of Rs. 3.69 and Rs. 1.57, the P/E ratio turns out to be 13.83 and 32.59 respectively.
  • Return on Net Worth – The weighted average RoNW for the three latest years is 14.89. The minimum RoNW after Issue needed to maintain Pre-Issue EPS for the year ended March 31, 2017 is 7.73%
  • Net Asset Value – NAV per Equity Share – The net asset value per equity share for FY 2016-17 is Rs. 26.17. Post the issue, the NAV per share would be Rs. 11.36
  • Comparison of Accounting ratios with Industry peers – The peer group includes Mangalam Seeds, Kaveri Seeds and Nath Bio-Genes.

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Indo US Bio-tech IPO Lead Managers

Lead Managers
Swastika Investmart Limited

Indo US Bio-tech IPO Registrar to offer

Registrar of the Offer
Bigshare Services Private Limited, Mumbai

Indo US Bio-tech IPO Review by Top 10 Stock Brokers

Top Stock Brokers ReviewCompany Repu-tationCompe-titive EdgeFinan-cial State-mentPopu-larity IndexPromo-ters Repu-tation
Angel Broking6.3/106.4/106.2/106.1/106.3/10
Sharekhan6.4/106.3/106.2/106.2/106.3/10
Kotak Securities6.2/106.3/106.2/106.3/106.4/10
ICICI Direct6.2/106.3/106.4/106.2/106.2/10
IIFL6.1/106.4/106.2/106.4/106.2/10
Edelweiss6.3/106.2/106.3/106.2/106.3/10
Zerodha6.4/106.3/106.2/106.3/106.4/10
5Paisa6.3/106.2/106.3/106.2/106.2/10
Karvy6.4/106.3/106.4/106.4/106.1/10
Motilal Oswal6.2/106.4/106.2/106.2/106.3/10

Indo US Bio-tech IPO Grey Market Premium

The grey market for Indo US Bio-tech has already opened. The grey market was live on 15 April 2018 itself. Lot of brokers have been dealing in this to be listed security. Also, the kostak rates i.e. grey market price is high in the trend.


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