Prospect Commodities deals in agricultural products. Despite the fact that it is a new company, the promoter has several years of expertise in the logistics industry and is running a partnership firm that mostly deals with the import and export of various agricultural commodities.
The company began importing cashew husks from Vietnam in 2018 and selling them to other tanning companies. In 2021, they established a cashew processing company with a capacity of 150 metric tons per year. It made 987.98 lakhs in revenue, with farm products accounting for 784.87 lakhs. The corporation increased by 107% between 2020 and 2021.
Prospect Commodities Ltd. IPO Objective
The company proposes to use the funds for the following objectives:
- Repayment of unsecured loans
- To fund long-term capital requirements
- General corporate expenses
- And, meeting public issue expenses
Why should you invest in Prospect Commodities Ltd. IPO?
Here are your top reasons to invest in the Prospect Commodities Limited IPO.
- The company has increased its capacity from 150 metric tons per year to 600 metric tons per year.
- They have extensive experience trading agricultural products and have solid commercial contacts with both internal and external partners.
- They serve the entire Indian market, despite the fact that they exclusively sell cashews in Gujarat.
- They have a solid product quality monitoring and after-sale services policy.
Know before investing
Strengths
- Quality assurance and constantly meeting the quality standards demanded by clients.
- They have a robust sales channel for the smooth operation of their B2B business.
- They are focusing on geographical expansion and entering the B2C category.
Risks
- The company is struggling with low production capacity and working capital constraints.
- Prices are affected by changes in customs duties in importing countries.
- The company faces competition from other manufacturers offering lower prices.
Prospect Commodities Ltd. Noteworthy highlights
- Prospect Commodities Limited has acquired the former partnership firm’s complete operation, including all liabilities and assets.
- The company operates on a B2B model, selling to wholesalers in Gujarat.
- To satisfy rising demand, they raised installed capacity from 150 to 600 metric tons per year.
Prospect Commodities IPO FAQs:
Q1. What is Prospect Commodities Ltd. IPO?
Ans. Prospect Commodities Ltd. SME, has filed a DRHP to raise ₹7.48 crore by selling 12,26,000 equity shares at a price of ₹61 per share.
Q2. When will Prospect Commodities Ltd. IPO allotment be available?
Ans. The basis of the allotment date is March 15, 2023.
Q3. What will be the Prospect Commodities Ltd. IPO lot size?
Ans. One lot of Prospect Commodities Ltd. IPO has 2000 shares.
Q4. When will Prospect Commodities Ltd. IPO open for subscription?
Ans. The IPO will open on March 8, 2023.
Q5. What minimum lot size can retail investors subscribe to?
Ans. Retail investors can apply for a minimum of one lot.
Q6. When will Prospect Commodities Ltd. list on exchanges?
Ans. The listing date of Prospect Commodities Ltd. on BSE SME is March 20, 2023.
Q7. What would be the listing gains on the Prospect Commodities Ltd. IPO?
Ans. Listing gain is the difference between the IPO’s opening and offer prices. The listing gain is influenced by changing investors’ interests, global parameters, and short and long-term outlooks.
Q8. I have finished the application process for Prospect Commodities Ltd. IPO, but the funds are not yet debited. What is the reason?
Ans. The bank initially blocks the amount you bid for an IPO. It will debit the money when the shares are allotted or unblock the amount after the UPI mandate expiration date.
Q9. How do I approve the UPI mandate request for Prospect Commodities Ltd. IPO?
Ans. Login to your UPI handle and approve the payment mandate to complete the IPO application process.
Q10. Can I submit more than one application for the public issue of Prospect Commodities Ltd. using one PAN?
Ans. You can submit only one application using one PAN card.
Q11. What is the minimum order quantity for Prospect Commodities Ltd. IPO?
Ans. The minimum size of the application will be one lot of 2000 shares.
