Vishwaraj Sugar Industries IPO / VSL IPO – Allotment, Subscription, GMP & DRHP

Let’s have a detailed review of the company and analytics of the Vishwaraj Sugar Industries IPO release date, IPO offer price, subscription, VSL IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.


Vishwaraj Sugar Industries IPO Review & Ratings

Vishwaraj Sugar Industries IPO Ratings & Review
CriteriaRatings
Industry Sentiments 6.3/10
Industry Ranking 6.3/10
Company Background6.1/10
Company Reputation6.4/10
Competitive Edge6.4/10
Financial Statements6.5/10
Popularity Index6.2/10
Promoters Reputation6.3/10
Retail Appetite 6.2/10
Top Brokers Review6.3/10
Overall Ratings 6.3/10
Star Ratings★★★☆☆

Summary of Vishwaraj Sugar Industries IPO or VSIL IPO

Vishwaraj Sugar Industries IPOVishwaraj Sugar Industries Limited  is 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. The Company operate a single location sugar unit having licensed crushing capacity of 11,000 TCD The Issue comprises of a Public Issue of 100,00,000 Equity shares of face value of Rs.10.00 each fully paid  up.

Our income from the sugar business formed approximately 76%, 66% and 67% of our total net sales in the F. Y. 2019, F. Y. 2018 and F. Y. 2017, respectively; Income from the co-generation business formed 7%, 6% and 5% of our total sales in the F. Y. 2019, F. Y. 2018 and F. Y. 2017, respectively; Income from the Distillery business formed 4%, 3% and 11% of our total sales in the F. Y. 2019, F. Y. 2018 and F. Y. 2017, respectively; whereas, Income from the IML business formed 8%, 18% and 15%of our total sales in the F. Y. 2019, F. Y. 2018 and F. Y. 2017, respectively.

Our revenue from operations for the last 3 years i.e. F. Y. 2016-17, 2017-18 and 2018-19 were Rs. 32,184.21 lakhs, Rs. 25,928.30 lakhs and Rs. 30,679.58 lakhs. Our Company reported losses in 2 of the 3 above periods, mainly due to high sugarcane price and competitive sugar prices. Our net profits / loss for F. Y. 2016-17, 2017-18 and 2018-19 were Rs. 606.25 lakhs, Rs. (426.67) lakhs and further Rs. (1,761.99) lakhs respectively.

The Promoter of this company are Mr. Umesh Katti ,Mr. Ramesh Katti ,Mrs. Sheela Katti, Mrs. Jayashree Katti ,Mr. Nikhil Katti, Mr. Lava Katti ,Mr. Kush Katti and Mrs. Sneha Nithin Dev. The lead manager to the issue is ARYAMAN FINANCIAL SERVICES LIMITED and the Registrar to this issue is  BIGSHARE SERVICES PRIVATE LIMITED .


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    Vishwaraj Sugar Industries IPO Date

    The opening and the closing date of VSL IPO is Sep 30, 2019 – Oct 4, 2019.


    Vishwaraj Sugar Industries IPO / VSL IPO Subscription

    Day / DateQIBNIIRIITotal Subscription
    1st Day – Sep 301.00x0.47x0.01x0.30x
    2nd Day – Oct 11.00x1.15x0.12x0.62x
    3rd Day – Oct 31.00x1.64x0.25x0.88x
    4th Day – Oct 41.00x1.76x0.63x1.12x
    Shares Offered or Net Issue1,000,0004,000,0005,000,00010,000,000

    The shares subscribed by the public will be updated herein.


    Vishwaraj Sugar Industries IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.

    Basis of Allotment FinalizationOct 11, 2019
    Refunds InitiationOct 14, 2019
    Credit of Shares to Demat AccountOct 15, 2019
    Share Listing DateOct 16, 2019

    Vishwaraj Sugar Industries IPO Price Band

    The face value of each share is Rs 10, but the price band of the IPO is Rs 55 – Rs 60. 


    Vishwaraj Sugar Industries IPO Equity Share Offering

    100,00,000 Equity Shares of Rs 10/- each but price band of the IPO is Rs 55 – Rs 60, aggregating up to Rs 60.00 Crores.

    • Offer for sale is 7000000 equity shares
    • Fresh issue is 3000000 equity shares

    The shares are listed at both BSE and NSE. The market lot or the minimum order quantity is 240 equity shares.


    Vishwaraj Sugar Industries Limited- Company Overview

    Vishwaraj Sugar Industries Limited  is 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. The Company operate a single location sugar unit having licensed crushing capacity of 11,000 TCD . In the year 2001, the company commenced operations of manufacture of Distillery products such as Ethanol, Rectified Spirit and Extra Neutral Spirit. In the year 2006, the Company implemented backward integration and began commercial operations for Sugar manufacture from sugarcane, along with Co-Generation capabilities.

    During the year 2008, the company began bottling of Indian Made Liquor. Currently their integrated unit processes sugarcanes to produce sugar and the byproducts are used to generate electricity for captive use and commercial sale, manufacture rectified spirit, ENA, IML, Vinegar, Press-mud and Compost.

    The Company is promoted by Mr. Umesh Katti , Mr. Ramesh Katti  etc who are the guiding force behind the growth and strategic decisions of the Company.

    Competitive Strengths of Vishwaraj Sugar Industries Limited :

    • Experienced Promoters and strong Executive Team .
    • Wide range of products .
    • Integrated operations and economies of scale .
    • Strong Technological Capabilities.
    • Strategic location of manufacturing unit

    Business strategies of Vishwaraj Sugar Industries Limited:

    • Increasing operational efficiency .
    • Explore possibilities of geographical expansion .
    • Addition of new IML products
    • Augment our fund based capacities in order to scale up business operations .

    Vishwaraj Sugar Industries Limited  – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    Amount (in INR & Lakhs)
    31-Mar-1931-Mar-1831-Mar-1731-Mar-1631-Mar-1531-Mar-1431-Mar-13
    Total Assets71,954.9662,418.6356,810.86  61,110.52 62,527.0157,494.81 50,353.25
    Total Revenue30,787.5526,893.1128,401.74  33,564.6627,624.85 27,836.44 41,414.92
    Total Expense34,3675.56  33,756.75 27,368.58  33,152.05 28,031.5725,451.75 39,551.45
    Profit After Tax(1,761.99)(426.67)877.89  441.46(321.65) 2,317.05 1,840.14

    Earnings per Equity Share (in Lakhs)

    31-Mar-1731-Mar-1631-Mar-15
    Basic & Diluted2.541.28-0.93

    From the above statements, one could find that the Vishwaraj Sugar Industries Limited  may perform well.


    Vishwaraj Sugar Industries IPO – Promoters

    The Promoter of this company are:

    1.  Mr. Umesh Katti 
    2. Mr. Ramesh Katti 
    3. Mrs. Sheela Katti 
    4. Mrs. Jayashree Katti 
    5. Mr. Nikhil Katti 
    6. Mr. Lava Katti 
    7. Mr. Kush Katti

    List of Related Parties (Key Managerial Personnel)

    • Vishwanath Hiremath

    Interest in promotion of the Company

    Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Vishwaraj Sugar Industries IPO Offer Details or Issue Details

     Particulars No. Of Equity Shares
     Equity Shares Offered Up to 1,00,00,000 Equity Shares, aggregating up to Rs. [●] Lakhs
     Of which:
     Reserved for Market Makers At least 10,00,000 Equity Shares
     Net Issue to the Public ;

    Fresh Issue

    Offer for Sale

    Up to 30,00,000 Equity Shares, aggregating up to Rs. [●] Lakhs 

     Up to 70,00,000 Equity Shares, aggregating up to Rs. [●] Lakhs

     Of which: QIB At least 10,00,000 Equity Shares
     Retail Investors Portion Not less than 50,00,000 Equity Shares
     Non-Retail Investors PortionNot less than 40,00,000 Equity Shares
     Equity Shares outstanding prior to the Issue3,45,56,000 Equity Shares
     Equity Shares outstanding after the Issue3,75,56,000 Equity Shares

    Vishwaraj IPO Issue Object

    These are the IPO Issue Objectives:

    (a) Funding Working Capital Requirement

    (b) General corporate purpose.


    Vishwaraj Sugar Industries / VSL IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    • Experienced Promoters and strong Executive Team
    • Wide range of products
    •  Integrated operations and economies of scale
    •  Strong Technological Capabilities
    •  Strategic location of our manufacturing unit
    •  Cordial and strong relationships with sugarcane farmers
    •  Captive Power plant and exportable capacitya

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-19(5.10) (8.33)%61.20 
    31-Mar-18 (1.23)(1.86)% –
    Mar-171.752.61%70.66
    31-Mar-161.28
    31-Mar-15-0.93
    • Industry P/E Ratio:
    ParticularsP/E ratio
    Average8.3
    Highest37.0
    Lowest2.6
    • Competitive Peers:
    ParticularsFace Value (in Rs.)EPS     (In Rs.)P/E RatioRONW (%) NAV (In Rs.)
    Ugar Sugar Works Ltd.  12.0815.7422.810.2
    Dwarikesh Sugar Industries Ltd 188.365.0177.215.2
    Balrampur Chini Mills Ltd 124.266.0442.765.6
    Dhampur Sugar Mill Ltd1036.426.0440.799.7

    Vishwaraj Sugar Industries IPO Lead Managers

    Lead Managers
    ARYAMAN FINANCIAL SERVICES LIMITED
    60, Khatau Building, Ground Floor,
    Alkesh Dinesh Modi Marg, Fort, Mumbai – 400 001.
    Tel No.: +91 – 22 – 6216 6999; Fax No.: +91 – 22 – 2263 0434
    Email: ipo@afsl.co.in; Website: www.afsl.co.in
    Investor Grievance Email: feedback@afsl.co.in
    SEBI Registration No.: INM000011344
    Contact Person: Mr. Pranav Nagar

    Vishwaraj Sugar Industries IPO Registrar to offer

    Registrar to the Offer
    BIGSHARE SERVICES PRIVATE LIMITED
    1st Floor, Bharat Tin Works Building, Opp. Vasant Oasis,
    Makwana Road, Marol, Andheri (E), Mumbai – 400 059.
    Tel: +91 – 22 – 6263 8200; Fax: +91 – 22 – 6263 8299
    Email: ipo@bigshareonline.com; Website: www.bigshareonline.com
    Investor Grievance Email: investor@bigshareonline.com
    SEBI Registration No.: INR000001385
    Contact Person: Mr. Ashok Shetty

    Other Details:

    • Statutory Auditor –  M/S. Gojanur & CO, Chartered Accountants
    • Peer Review Auditor – M/s. NSVR & Associates, Chartered Accountants
    • Bankers to the Company –   THE BELAGAVI DISTRICT CENTRAL CO-OPERATIVE BANK LTD, BELLAD-BAGEWADI URBAN SOUHARDA SAHAKARI BANK.

    Vishwaraj Sugar Industries IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking6.5/106.6/106.6/106.4/106.4/10
    Sharekhan7.7/106.4/107.7/106.1/106.2/10
    Kotak Securities6.7/107.7/106.7/107.7/106.3/10
    ICICI Direct7.6/106.3/106.2/106.5/106.5/10
    IIFL6.4/106.7/107.7/106.4/106.7/10

    Vishwaraj Sugar Industries IPO Grey Market Premium

    The VSL IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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      Vishwaraj Sugar Industries IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)

      News 2 – Red Herring Prospectus (Download RHP PDF)


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