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|
|Top Brokers Review||6.3/10|
Summary of Vishwaraj Sugar Industries IPO or VSIL IPO
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 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 / Date||QIB||NII||RII||Total Subscription|
|1st Day – Sep 30||1.00x||0.47x||0.01x||0.30x|
|2nd Day – Oct 1||1.00x||1.15x||0.12x||0.62x|
|3rd Day – Oct 3||1.00x||1.64x||0.25x||0.88x|
|4th Day – Oct 4||1.00x||1.76x||0.63x||1.12x|
|Shares Offered or Net Issue||1,000,000||4,000,000||5,000,000||10,000,000|
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 Finalization||Oct 11, 2019|
|Refunds Initiation||Oct 14, 2019|
|Credit of Shares to Demat Account||Oct 15, 2019|
|Share Listing Date||Oct 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:
|Amount (in INR & Lakhs)|
|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)
|Basic & Diluted||2.54||1.28||-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:
- Mr. Umesh Katti
- Mr. Ramesh Katti
- Mrs. Sheela Katti
- Mrs. Jayashree Katti
- Mr. Nikhil Katti
- Mr. Lava Katti
- 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.
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|
|Reserved for Market Makers||At least 10,00,000 Equity Shares|
| Net Issue to the Public ;|
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 Portion||Not less than 40,00,000 Equity Shares|
|Equity Shares outstanding prior to the Issue||3,45,56,000 Equity Shares|
|Equity Shares outstanding after the Issue||3,75,56,000 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 EPS||RONW (%)||NAV (Rs.)|
- Industry P/E Ratio:
- Competitive Peers:
|Particulars||Face Value (in Rs.)||EPS (In Rs.)||P/E Ratio||RONW (%)||NAV (In Rs.)|
|Ugar Sugar Works Ltd.||1||2.08||15.74||22.8||10.2|
|Dwarikesh Sugar Industries Ltd||1||88.36||5.01||77.2||15.2|
|Balrampur Chini Mills Ltd||1||24.26||6.04||42.7||65.6|
|Dhampur Sugar Mill Ltd||10||36.42||6.04||40.7||99.7|
Vishwaraj Sugar Industries IPO 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: [email protected]; Website: www.afsl.co.in
Investor Grievance Email: [email protected]
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: [email protected]; Website: www.bigshareonline.com
Investor Grievance Email: [email protected]
SEBI Registration No.: INR000001385
Contact Person: Mr. Ashok Shetty
- 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 Review||Company Reputation||Competitive Edge||Financial Statement||Popularity Index||Promoters Reputation|
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)
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