Sresta Natural Bioproducts Ltd., a Hyderabad-based organic food manufacturer, has filed preliminary filings with SEBI to fund Rs 500 crore via an initial share offering. The initial public offering (IPO) consists of a fresh issue of equity shares worth up to Rs 50 crore and a sale of up to 70.30 lakh equity shares by the selling shareholders.
With a market share of 29% in the packaged organic food category in FY 2020, Hyderabad-based Sresta Natural Bioproducts is the owner of the most well-known brand, “24 Mantra.” Its business is to buy, process, produce, sell, and create organic food products. It is also one of the biggest Indian organic food brands in the United States, with a presence in 39 states across Indian Ethnic Stores and mainstream stores. It will also be available in 34 other countries and on major e-commerce platforms, such as
Bigbasket in India by 2021. It sells a wide variety of grocery items, including packaged foods, beverages, meal fixings, spices and condiments, and edible oils. Among B2C organic food enterprises in India, the company cultivates the largest land for organic farming and maintains close contact with farmers in 12 different states. The company’s supply chain includes 34,516 farmers, 190,610 acres of certified organic land spread over 12 Indian states, 65 vendors and companies, and multiple aggregators.
Sresta Natural Bioproducts IPO Objectives:
Here are a few quick reasons why BIBA is going public:
- Funding the working capital requirements of our Company.
- Repayment or pre-payment in full or part of certain outstanding unsecured or secured borrowings availed by our company
- General corporate purposes.
Sresta Natural Bioproducts IPO Financials
| Particulars | FY21 | FY20 | FY19 |
|---|---|---|---|
| Revenue | 31.21 | 26.23 | 20.55 |
| EBITDA | 2.49 | 2.37 | 0.62 |
| PAT | 1.04 | 0.95 | -0.35 |
| Total Assets | 19.36 | 16.95 | 15.89 |
| Share Capital | 1.83 | 1.83 | 1.82 |
| Total Borrowings | 5.26 | 4.45 | 4.90 |
| Net cash generated from operating activities | 2.05 | 16.49 | 11.40 |
| Net cash from investing activities | -0.13 | 0.59 | -6.71 |
| Net cash flow from financing activities | -1.48 | -15.28 | -8.02 |
| Net change in cash and cash equivalents | 0.44 | 1.79 | -3.32 |
Sresta Natural Bioproducts IPO Key Points
Strengths:
- Market leader and one of the pioneers in the rapidly growing organic foods industry in India, with a diversified and innovation-driven product portfolio through research and development efforts
- Pan-India presence and market leadership fostered by an omni-channel distribution network
- One of the leading Indian organic food brands in the USA, with exports to a total of 34 countries
- Asset-light model with strategically located processing facilities and end-to-end control over the integrated supply chain with a focus on quality
Risks:
- The inability to procure adequate amounts of organic agricultural produce from farmers, aggregators and organically certified vendors or companies at competitive prices or at all may have an adverse effect
- Any disruption of operations at such third-party facilities or termination of agreements for primary processing of the organic raw material by third party facilities could affect the business
- Inability to meet the tastes, preferences or consistent quality requirements of the customers or to accurately predict and successfully adapt to changes in market demand
- The organic food industry in India is in nascent stage and the lack of awareness among Indian consumers and farmers regarding organic food products makes them vulnerable to misconceptions around organic farming
- The improper handling, processing or storage of the products or raw materials, or spoilage of and damage of such products or raw materials
Sresta Natural Bioproducts IPO FAQs :
Q1. What is Sresta Natural Bioproducts’ Initial Public Offering?
Ans. The Sresta Natural Bioproducts IPO comprises a fresh issue of equity shares worth Rs. 50 crore and an Offer for Sale of up to 70.30 lakhs equity shares by the existing shareholders.
Q2. When will allotments for the Sresta Natural Bioproducts IPO become available?
Ans. Sresta Natural Bioproducts IPO will finalize the allotment by <>.
Q3. What will the IPO lot size for Sresta Natural Bioproducts be?
Ans. Each Sresta Natural Bioproducts IPO lot has <> shares.
Q4. When will Sresta Natural Bioproducts IPO be available to buy?
Ans. The IPO of Sresta Natural Bioproducts will be open for subscription from <>.
Q5. What is Sresta Natural Bioproducts’ smallest lot size available to retail investors?
Ans. The minimum market lot size for the Sresta Natural Bioproducts IPO is <> shares.
Q6. Which exchanges will Sresta Natural Bioproducts list on?
Ans. Sresta Natural Bioproducts shares will be listed on both BSE as well as the National Stock Exchange (NSE).
Q7. What is the IPO size of Sresta Natural Bioproducts?
Ans. The IPO size of Sresta Natural Bioproducts is Rs 50 crore.
Q8. How will I get my Sresta Natural Bioproducts stock?
Ans. Following allotment, the Sresta Natural Bioproducts shares will be credited to the Demat account.
Q9. Can I use one PAN to submit multiple applications for the public issue of Sresta Natural Bioproducts?
Ans. No, you cannot use the same PAN to make multiple applications for this Sresta Natural Bioproducts IPO or any other public offering.
Q10. Is it necessary to give immediate approval to a UPI mandate request?
Ans. Yes, immediately approving a UPI mandate request is preferable. Accepting it as soon as you receive it is much better.
Q11. Who owns Sresta Natural Bioproducts?
Ans. Mr Rajashekar Reddy Seelam is the owner of Sresta Natural Bioproducts.
