Sresta Natural Bioproducts Limited’s brand, ’24 Mantra,’ is the most popular in the packaged organic food category with a market share of around 29 percent in Fiscal 2020(except organic processed food market drink and packaged tea and coffee). Sresta Natural Bioproducts IPO will hit the stock market in May 2021.
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About Sresta Natural
Rajashekar Reddy Seelam, one among their Promoters, incorporated them in 2004. They work in the fields of organic food procurement, processing, production, advertising, and research & development.
As of September 30, 2021, they are also among the india’s Largest organic food names in the United States, with a footprint in 39 states throughout Indian Ethnic Stores and Mainstream Outlets, and a total of 34 nations.
As being among India’s early pioneers in the organic food business. Their purpose is to promote a sustainable living for farmers as well as a healthier diet for people, all while helping to improve the environment as a whole.
They feel that they also play an important part in developing a healthy organic farming ecosystem.
Network
Regarding the B2C organic food firms in India, Sresta Natural Bioproducts have the most acreage under organic cultivation and have significant sourcing relationships with producers in 12 states.
Their procurement chain comprised 34,516 farmers, 190,610 acres of certified organic land (containing land under organic conversion) throughout 12 Indian states, 65 vendors/companies (including certain organic registered vendors/companies), and different aggregators as of September 30, 2021.
They are active in most of the categories among the top players in the organic goods market with a foothold in the packaged food category.
They sell everything from supermarket essentials to spices and condiments to edible oils, packaged foods, beverages, and meal accompaniments.
Business Model
They operate on a ‘asset light’ model, in which they hold three secondary manufacturing plants in India, two of which are in Telangana and one in Karnataka.
They outsource their basic production to third-party establishments throughout the nation under the review and control of their workforce, allowing them to focus on advertising, delivery, and supplying high-quality produce.
Organic food is predicted to grow at a CAGR of over 24% over Fiscal 2020 and Fiscal 2025, increasing its contribution of the total health and wellness sector in India to 4%.
Throughout CY 2020 and CY 2025, the worldwide organic food industry is predicted to increase by 9.4%, achieving a valuation of USD 210 billion.
Sresta Natural Bioproducts IPO
Sresta Natural Bioproducts Limited, headquartered in Kachchh has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 50 crore & 7,030,962 equity shares on 08 January 2022.
The offer includes a fresh issue of INR 50 crore and there is offer for sale (OFS) of INR 7,030,962 equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.
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IPO
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 30-Sep-21 | 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | ||
| Total Assets | 221.08 | 193.57 | 169.53 | 158.93 | |
| Total Revenue | 161.12 | 314.37 | 266.42 | 208.21 | |
| Profit After Tax | 1.14 | 10.39 | 9.46 | (3.47) | |
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 5.69 | 5.67 | 3 |
| Financial Year 2020 | 5.18 | 5.17 | 2 |
| Financial Year 2019 | (1.93) | (1.93) | 1 |
| Weighted Average | 4.25 | 4.24 | |
| 30 Sep. 2021 | 0.62 | 0.62 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
The following are a few qualitative variables that go into determining the Offer Price:
- With their research and development efforts, they have become a market leader and one of the innovators in India’s fast growing organic foods business, with a varied and innovation-driven product category.
- An omni-channel supply chain supports a pan-India footprint and leading position.
One of the most well-known Indian organic food brands in the United States, with supplies to 34 nations. - Special purchasing access to farmers inside their network further strengthens their large-scale and effective supply chain system, which is an entry barrier.
- Asset-light concept with geographically situated production plants and end-to-end quality management of the entire supply chain.
- Executive leadership team and skilled promoters.
Sresta Natural Bioproducts Peer Comparison
There are no publicly traded firms in India whose company and scale of activities are exactly equal to theirs.
Sresta Natural IPO Details
| IPO Opening Date | May 2021 |
| IPO Closing Date | May 2021 |
| Issue Type | Book Building |
| Face Value | 10 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Amount | – |
| Listing At | BSE, NSE |
| Issue Size | – |
| Fresh Issue | 50 Crore |
| Offer for Sale | 7,030,962 equity shares |
Sresta Bioproducts IPO Date
Sresta Natural Bioproducts IPO opening date is May 2021, and the closing date is May 2021. The Sresta Natural Bioproducts issue may list in May 2021.
| IPO Opening Date | May 2021 |
| IPO Closing Date | May 2021 |
| Basis of Allotment Date | May 2021 |
| Initiation of Refunds | May 2021 |
| Credit of Shares to Demat Account | May 2021 |
| IPO Listing Date | May 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 10 | Minimum 1 lot based on availability |
Sresta IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Sresta Natural IPO.
Sresta Natural Bioproducts IPO GMP
Sresta Natural IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:
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Sresta Natural Bioproducts IPO Review
Sresta Natural IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Sresta Natural Bioproducts IPO is good or bad.
Sresta Natural IPO Risk
- They rely on a steady supply of organic farm produce to run their business.
- For initial processing of organic raw materials, they rely on third-party establishments.
- They are unable to guarantee that their product combination will continue to be successful in the future.
- The effect of the COVID-19 epidemic on their company and operating results will continue to be unexpected and unpredictable.
- Their business is reliant on the ’24 Mantra’ brand, and any unfavourable coverage or failure to maintain and strengthen their brand could have a detrimental impact.
- Several statutes compel them to seek licences and approvals, as well as obtain independent certification and recognition for their organic food items.
- Their exports account for a substantial amount of their revenue.
Other Threats
- Their failing to handle their inventories and accurately forecast future demand for their items may have a negative impact on their business.
- The advent of modern trade channels such as hypermarkets, supermarkets, and online retailers may have a negative impact on their pricing power.
- They demand a large amount of working capital.
- They do not have long-term or exclusive agreements with retail stores or e-commerce platforms to sell their items.
- Their company is involved in ongoing legal actions. Any negative conclusion in such legal processes could have a negative impact on their business.
- Their finance arrangements, as well as the Amendment and Termination Agreement, contain restrictive covenants that may impair their ability to manage their firm.
Growth
They have previously created procedures to increase the shelf life of diverse items without using any synthetic preservatives, and granulated constituents of Ayurvedam teas to facilitate grinding and packing utilizing high-speed tea bag packing equipment.
Their R&D team has also assisted in reducing crystallisation in the jaggery blocks and therefore enhancing the shelf life of the finished product by introducing easy drying and vacuum packaging.
Their market position, and also the expanding demand for their ’24 Mantra’ brand, has bolstered their position and contributed to the Company ‘s entire commercial success.
Brand Footprints
Their products were available in an approx of 7,555 outlets in India as of September 30, 2021, including 1,791 Modern Trade Stores like Metro, More Retail, and other renowned mainstream superstores in India, and 5,764 General Trade Stores in 556 city areas and towns throughout 26 states and three union provinces, with a solid existence in metro and tier I cities.
Sresta Bioproducts IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Sresta Natural IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| May 2021 | 1 | |||||
| May 2021 | 2 | |||||
| May 2021 | 3 |
Management
They are led by a seasoned executive and administrative personnel with vast experience in their sector. Rajashekar Reddy Seelam, their Promoter and Managing Director, is among India’s early pioneers in the organic food sector.
He has been honoured by the Society for Millets Research and ICAR-Indian Institute of Millet Research for his contributors in the segment of Best Millet Entrepreneur (organic foods) from the Telangana state for the year 2016-2017.
Balasubramanian Narayanan, the firm’s Promoter and Whole-Time Director and Chief Executive Officer, has worked for F&B firms such Godrej Agrovet Limited, Tropicana Beverages Company, and Effem India Private Limited. Both of these individuals have been with their firm for numerous years and have extensive knowledge in this field.
Promoters
- Rajashekar Reddy Seelam
- Renuka Seelam
- Balasubramanian Narayanan
Promoter’s Holding
| Pre Issue Share Holding | 23.63% |
| Post Issue Share Holding |
Sresta Natural IPO Prospectus
Contact Details
Sresta Natural Bioproducts Limited
203, Pavani Annexe,
Road No. 2, Banjara Hills,
Hyderabad 500 034,
Telangana, India
Tel: +91 40 4005 6381
E-mail: [email protected]
Website: www.sresta.com
Registrar
KFin Technologies Private Limited
Selenium Tower B, Plot No. 31 and 32, Financial District
Nanakramguda, Serilingampally
Hyderabad, Rangareddi 500 032
Telangana, India
Tel: +91 40 6716 2222
Toll free no.:1800 345 4001
E-mail: [email protected]
Website: www.kfintech.com
Lead Manager(s)
- Axis Capital Limited
- JM Financial Limited
We hope we are able to answer all your questions about Sresta Natural IPO. If you don’t have a Demat account, open it now with Zerodha best trading app of India.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
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FAQ
Sresta Natural IPO Opening Date?
Sresta IPO will open in May 2021.
Sresta Bioproducts IPO Listing Date?
Sresta Bioproducts IPO will list in May 2021.
Sresta Natural Bioproducts IPO GMP Today?
Sresta Natural IPO Grey Market Premium is INR 0 .
Sresta Bioproducts IPO Allotment Date?
Sresta Natural IPO basis of allotment will be in May 2021.
Lot size for Sresta IPO?
Lot size for Sresta Natural IPO is 0.
