Nekkanti Seafoods IPO – Review, Allotment Status, Subscription, Price, Date & more

Nekkanti Seafoods IPO is one of the latest IPO drafted with SEBI in March,13th 2018. In this Article, We will go through in detail regarding Nekkanti Seafoods IPO along with deep understanding of this IPO Object, Offerings, Companies Financials, Companies reputation, allotment status, Grey market pricing, release date, price & more.


Nekkanti Seafoods IPO Review & Ratings

Nekkanti Seafoods IPO Ratings & Review
CriteriaRatings
Industry Sentiments7.8/10
Industry Ranking7.5/10
Company Background7.9/10
Company Reputation7.6/10
Competitive Edge7.4/10
Financial Statements7.8/10
Popularity Index7.5/10
Promoters Reputation7.7/10
Retail Appetite7.2/10
Top Brokers Review7.2/10
Overall Ratings7.6/10
Star Ratings★★★☆☆

Summary – Nekkanti Seafoods Limited IPO

Here is a short review of Nekkanti Seafoods IPO. Nekkanti Seafoods IPO is third consecutive IPO drafted with SEBI by any Seafoods company. This IPO was drafted on March 13th 2018.

Nekkanti Seafoods limited has hired Motilal Oswal Investment Advisors limited as their Lead Managers to build their IPO offering strategy. Karvy Computershare Private Limited is acting as registrar to the offer.

Nekkanti Seafoods Limited is among the leading processors & exporters of processed frozen shrimp products with over 3 decades of operations. The company has been consistently profitable & has grown significantly with CAGR of 29.33% from fiscal 2013 to fiscal 2017.

The Companies market share in export of Shrimp Products has grown from 1.95% to 2.49% in Fiscal 2013 & Fiscal 2017.


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Nekkanti Seafoods IPO Date

IPO issue date has not been released yet.

Nekkanti Seafoods IPO Subscription

 Subscription
Day 1X
Day 2X
Day 3X
Day 4X
Day 5X

The IPO issue date has not been announced yet, once the IPO is issued, Subscription status will be updated on daily basis.

Nekkanti Seafoods IPO Allotment Status

The allotment status of Nekkanti Seafoods IPO will be out after 3-4 weeks on IPO subscription.

Nekkanti Seafoods IPO Price Band

The price band of the IPO has not been disclosed yet, this will be revealed before 1 week of the issue.

Nekkanti IPO Issue Size

The issue size of the IPO is around INR 750 crore.

Nekkanti IPO Equity Shares Offerings

Nekkanti Seafoods have not disclosed the number of shares they will offer to the public yet. This will be released post approval from SEBI.


Nekkanti Seafoods Limited – Company Overview

Nekkanti Seafoods limited is one of the largest exporters of Processed Shrimp products in the country. The company is based out of visakhapatnam. In 1985, the company started in operations from kakinada. As of the date of this Draft Red Herring Prospectus, the company owns and operates three processing facilities located along the
coastal belt of Andhra Pradesh.

Some of the key members of the company:

  • Neekanti Seetha Ramachandra Murty (Chairman & Whole-time Director)
  • Nekkanti Venkat Rao (Managing Director & CEO)
  • Nekkanti Mahesh (Joint MD & Whole-time Director)

The products provided by Nekkanti Seafoods are:

Shell-on Products – It include head-on shell-on shrimps & headless shell-on shrimps. This products accounts for 9.71% of total revenue of Nekkanti.

Peeled Products – These are ready to cook range of shrimps. This products accounts for 80.39% of their total revenue.

Cooked Products – These are ready-to-cook range of shrimps. They account for 7.85% of total revenue generated by Nekkanti Seafoods.

Breaded & other Products – These shrimps are value added products that involve additional processing such as coating with breadrumbs, Frying etc. They account for 2.05% of their total revenue.


Nekkanti Seafoods Limited – Financial Statement

Let’s check have a detailed look at their financial stability:

Asset of the Company

Assets (in millions)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Non-Current Asset15661138590510434
Current Asset213393812851212423
Total Asset3699207618741722857

Revenue & PAT of the Company

Revenue & Profits (in millions)
 Mar’17Mar’16Mar’15Mar’14Mar’13
Total Revenue84027798694158713001
Profit after Tax (PAT)555297476329119

Earnings per Equity Share

Earning per Equity Share
 Mar’17Mar’16Mar’15Mar’14Mar’13
Basic8.184.397.024.861.76
Diluted8.184.397.024.861.76

The Shrimp Processing company has shown massive growth in terms of revenue & PAT in last 5 years. The company has grown by approx 5x. This growth is quite phenomenal.


Nekkanti Seafoods Limited Promoters

The company is promoted by 2 individuals & 1 HUF. The Promoters of the company are:

  • Nekkanti Seetha Ramachandra Murty
  • Venkata Lakshmi Nekkanti
  • Nekkanti Seetha Ramachandra Murty (HUF)

Interest of Promoters

Interest of Promoters in the Promotion of the Company

The Promoters are interested in the Company to an extent of their shareholding and/or directorship in the Company and the dividend declared, if any, by our Company.

Interest of Promoters in the Property of our Company

Promoters do not have any interest in any property acquired by our Company within two years preceding the
date of the Draft Red Herring Prospectus or proposed to be acquired by our Company as on the date of filing of the draft Red Herring Prospectus or in any transaction for acquisition of land, construction of buildings and supply of
machinery. However, our Promoters have leased certain of their properties to our Company.

Interest of Promoters in Intellectual Property

The Companies Promoters are not interested in any intellectual property rights used by our Company.


Nekkanti Seafoods Limited IPO Offer Details or IPO issue Details

Check the details below for detailed understanding of the Nekkanti Seafoods IPO offer:

Fresh IssueUp to [●] Equity Shares aggregating up to 2,500 million
Offer for Sale by:
Venkata Lakshmi NekkantiUp to 4,265,000 Equity Shares
Nekkanti Seetha Ramachandra Murty (HUF)Up to 1,800,000 Equity Shares
Atluri SreeramUp to 557,070 Equity Shares
Nekkanti Venkat RaoUp to 489,660 Equity Shares
Nekkanti RajeswariUp to 212,900 Equity Shares
Atluri SirishaUp to 144,300 Equity Shares
Nekkanti Subba RayuduUp to 141,930 Equity Shares
Nekkanti MaheshUp to 137,200 Equity Shares
Atluri Murali KrishnaUp to 94,620 Equity Shares
Nekkanti AnjanaUp to 74,520 Equity Shares
Meka DurgaUp to 70,970 Equity Shares
Atluri Venkata LakshmiUp to 11,830 Equity Shares
The Offer consists of:
A. QIB PortionEquity Shares
Of which:
Anchor Investor Portion*Up to [●] Equity Shares
Net QIB Portion (assuming Anchor Investor Portion is fully subscribed)[●] Equity Shares
Of which:
Mutual Fund Portion[●] Equity Shares
Balance for all QIBs including Mutual Funds[●] Equity Shares
B. Non-Institutional PortionNot less than [●] Equity Shares
C. Retail PortionNot less than [●] Equity Shares

Equity Share of QIB, Non-Institutional Portion & Retail Portion has not been specified yet. This will be specified once red herring prospectus is approved by SEBI.


Nekkanti Seafoods IPO Issue Object

Following are the objects of Nekkanti Seafoods IPO issue:

  • Funding the working capital requirements of our Company
  • General Corporate Purposes like Strategic Initiatives, Corporate Branding, Operating Expences etc.

Nekkanti Seafoods Limited IPO – Basis of Offer Price

The offer price of Nekkanti Seafoods limited is determined by the company in consultation with BRLM. The face value of equity shares are Rs.2. The various quantitative & qualitative factors which will affect the offer price of Nekkanti Seafoods IPO are:

Qualitative Factors:

Here are the following business strengths provides competitive advantage in the Industry:

  • Their position as a leading shrimp processor and exporter
  • Strategically located processing facilities
  • Strong product mix with focus on value-added products
  • Strong relationships and established customer base
  • Consistent track record of financial performance
  • Experienced and dedicated management team

Quantitative Factors:

  • Basic and Diluted Earnings Per Share (“EPS”) is Rs.17.49
  • Price/Earning (“P/E”) ratio in relation to Price Band
  • Industry P/E ratio i.e. Industry Composite P/E is 59.53%
  • Return on Net Worth (“RoNW”) from Mar,31st 2017 to Dec, 31st 2017 is 35.63%
  • Minimum Return on Total Net Worth after Offer needed to maintain Pre-Offer EPS
  • Net Asset Value per Equity Share from Mar,31st 2017 to Dec, 31st 2017 is Rs.49.10
  • Comparison with Listed Industry Peers
  • The Offer Price will be X times of the face value of the Equity Shares
  • Average Cost of Acquisition per Equity Share by our Promoters and Selling Shareholders

Nekkanti Seafoods IPO Lead Managers

Lead Managers
Motilal Oswal Investment Advisors Limited

Nekkanti Seafoods Limited IPO Registrar of the offer

Registrar of the Offer
Karvy Computershare Private Limited

Nekkanti Seafoods IPO Review by Top 10 Stock Brokers

Here is what stock brokers & their research analyst has to say about the IPO:

Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
Angel Broking7.0/107.5/107.0/107.3/107.5/10
Sharekhan7.1/107.6/107.8/107.5/107.7/10
Kotak Securities7.3/107.5/107.9/107.5/107.6/10
ICICI Direct7.3/107.3/107.2/107.4/107.4/10
IIFL7.5/107.5/107.2/107.0/107.5/10
Edelweiss7.5/107.5/107.1/107.3/107.6/10
Zerodha7.4/107.4/107.0/107.1/107.5/10
5Paisa7.1/107.6/107.8/107.5/107.3/10
Karvy7.4/107.3/107.7/107.6/107.5/10
Motilal Oswal7.1/107.5/107.9/107.3/107.4/10

Nekkanti Seafoods IPO Grey Market Premium

The Grey Market Premium of Nekkanti Seafoods IPO has not been released yet. It will release 2 weeks before the IPO issue date. The Kostak Rates will also go live before 2 weeks of IPO release date.


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Nekkanti Seafoods IPO News

News 1 – Nekkanti Sea Foods files draft papers with Sebi to raise Rs 7.5 bn via IPO


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