Upsurge Seeds of Agriculture Limited IPO (Upsurge Seeds of Agriculture IPO) Details
Incorporated in 2017, Upsurge Seeds of Agriculture Limited (USA) is a seeds manufacturing company engaged in business of growing, developing, processing and marketing of variety of seeds for a range of field crops and vegetables. The company has a processing unit, which is equipped with modern technology and is spread across an area of more than 45,000 sq. feet, situated at Kuvadva, Rajkot.
The company sells its seeds under the brand name “USA seeds”. As of March 31, 2022, Upsurge Seeds of Agriculture Limited has produced seeds for more than 40 different field crops and vegetables and have operations across India covering Gujarat, Maharashtra, and Rajasthan with more than 75 varieties of Crops.
The company’s product portfolio includes crop seeds for Groundnut, Wheat, Cumin, Green Gram, Black Gram and vegetable seeds for Onion, Coriander Seeds, Fenugreek etc.
Competitive Strengths:
- Wide Range of Seeds and its Variants
- Quality Assurance
- Customer Satisfaction
- Experienced Promoter supported by dedicated Management team
- Proven track record of robust financial performance
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth | Reserves and Surplus |
|---|---|---|---|---|---|
| 31-Mar-20 | 835.39 | 1763.73 | 21.92 | ||
| 31-Mar-21 | 1811.8 | 6290.31 | 85.31 | ||
| 31-Mar-22 | 4087.49 | 7577.15 | 396.44 | ||
| Amount in ₹ Lakhs |
Objects of the Issue
The company intends to utilize the proceeds of the Issue to meet the following objects:
- To meet the Working Capital requirements.
- General Corporate Purpose.
- To meet Issue Expenses.
Upsurge Seeds of Agriculture IPO Details
| Upsurge Seeds of Agriculture IPO Date | Jul 29, 2022 to Aug 2, 2022 |
| Upsurge Seeds of Agriculture IPO Face Value | ₹10 per share |
| Upsurge Seeds of Agriculture IPO Price | ₹120 per share |
| Upsurge Seeds of Agriculture IPO Lot Size | 1200 Shares |
| Issue Size | 1,900,800 shares of ₹10 (aggregating up to ₹22.81 Cr) |
| Fresh Issue | 1,900,800 shares of ₹10 (aggregating up to ₹22.81 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | NSE SME |
| Retail Shares Offered | 50% of the net offer |
| NII (HNI) Shares Offered | 50% of the net offer |
| Company Promoters | Mr. Arvindkumar Jadavjibhai Kakadia, Mr. Viken Jentilal Kakadiya and Mrs. Sonalben Arvindbhai Kakadiya are the company promoters. |
Upsurge Seeds of Agriculture IPO Timeline (Tentative Timetable)
Upsurge Seeds of Agriculture IPO opens on Jul 29, 2022, and closes on Aug 2, 2022. The Upsurge Seeds of Agriculture IPO bid date is from Jul 29, 2022 10.00 A.M. to Aug 2, 2022 5.00 P.M. The Cut-off time for UPI Mandate confirmation is 12 P.M. on the next day of issue closing day.
| Event | Date |
|---|---|
| Upsurge Seeds of Agriculture IPO Opening Date | Jul 29, 2022 |
| Upsurge Seeds of Agriculture IPO Closing Date | Aug 2, 2022 |
| Basis of Allotment | Aug 5, 2022 |
| Initiation of Refunds | Aug 8, 2022 |
| Credit of Shares to Demat | Aug 10, 2022 |
| Upsurge Seeds of Agriculture IPO Listing Date | Aug 11, 2022 |
Upsurge Seeds of Agriculture IPO Lot Size
The Upsurge Seeds of Agriculture IPO lot size is 1200 shares. A retail-individual investor can apply for up to 1 lots (1200 shares or ₹144,000).
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Minimum | 1 | 1200 | ₹144,000 |
| Maximum | 1 | 1200 | ₹144,000 |
Upsurge Seeds of Agriculture IPO Promoter Holding
| Pre Issue Share Holding | 96.92% |
| Post Issue Share Holding | 70.82% |
Upsurge Seeds of Agriculture IPO Review
USAL has posted boosted bottom line for FY22 which is helping its IPO pricing to be around 22 P/E. Based on this ratio, the issue is fully priced. It placed shares at Rs. 60 in January 2022 and now mulls doubt the price from new investors. Of late many players have emerged in this segment raising cut-throat competition. The second IPO from a group company in a similar business raises concern. Considering all these, cash surplus/risk seekers may consider parking funds with a long-term perspective.
