Sarveshwar Foods Ltd IPO

Sarveshwar Foods Ltd

Sarveshwar Foods Ltd Incorporated in 2015, but the business was founded by the late Shri Mulamal Ji in 1890, and his son the late Shri Isher Dass Gupta took it into the second quarter of the last century. The group further expanded under the vision of the current chairman, Shri Suraj Prakash Gupta (Papaji), who gave it a new direction. Currently owned and managed by the fourth generation of the family and supported by a team of able professionals.

With over 100 years of experience in sourcing and processing of traditional Basmati rice Sarveshwar Foods Ltd is engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets. They offer procurement, storage, milling, sorting, packaging, branding and distribution of Rice.

Company’s product portfolio comprises of Basmati and non-Basmati rice of various kinds including white raw rice, steam rice, broken rice, brown rice and parboiled rice. Along with
the varied variety of conventional Basmati and non-Basmati rice their product portfolio also includes organic Basmati and non-Basmati rice including range of other organic products. They markets and distributes these organic food products under its brand “Nimbark”.

Company is selling organic products through this store viz. rice, red rice, brown rice, flours, pulses, nuts & dry fruits, spices & condiments, jaggery & sugar, breakfast cereals, edible oils, saffron, flaxseed, sesame seed. Sarveshwar’s operations are based out of the Jammu Region in the State of Jammu and Kashmir.


On performance front, Sarveshwar Foods Ltd has (on a consolidated basis) posted turnover/net profits of Rs. 241.37 cr. / Rs. 7.40 cr. (FY14), Rs. 262.50 cr. / Rs. 7.97 cr. (FY15), Rs. 355.19 cr. / Rs. 5.43 cr. (FY16) and Rs. 419.89 cr. / Rs. 12.81 cr. (FY17). For first half of current fiscal ended on 30.09.17 it has reported net profit of Rs. 7.93 cr. on a turnover of Rs. 259.39 cr. For last three fiscals, SFL has posted an average EPS of Rs. 7.09 and an average RoNW of 18.94%. Based on last three years’ average EPS asking price is at a P/E of around 12. Issue is priced at a P/BV of 1.98 on the basis of its NAV of Rs. 43.03 as on 30.09.17. If we annualize latest earnings and attribute it on fully diluted post issue equity then asking price is at a P/E of around 13 against its peers trading at 60 (LT Foods), 27 (KRBL) and 19 (Chamanlal Setia) as on 28.02.2018.

Issue Detail:

»»  Issue Open: Mar 5, 2018 – Mar 7, 2018
»»  Issue Type: Book Built Issue IPO
»»  Issue Size: 6,467,200 Equity Shares of Rs 10 aggregating up to Rs 54.97 Cr
»»  Face Value: Rs 10 Per Equity Share
»»  Issue Price: Rs 83 – Rs 85 Per Equity Share
»»  Market Lot: 1600 Shares
»»  Minimum Order Quantity: 1600 Shares
»»  Listing At: NSE SME

One can apply this sme for short to long term.

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