SME IPO: TBI Corn, backed by prominent investor Ashish Kacholia, submits draft IPO documents

SME IPO: TBI Corn, backed by prominent investor Ashish Kacholia, submits draft IPO documents

According to the corn milling firm, the proceeds of the offering will be used for both DRHP-mandated increased working capital requirements and the expansion of the current unit.

Moneycontrol has been informed by sources that TBI Corn shares are expected to be priced between Rs 90 and Rs 93 per share.

In order to earn money via a public offering, TBI Corn Limited (TBICL) has submitted a draft red herring prospectus (DRHP) to SEBI. TBICL plans to sell up to 50,00,000 additional equity shares.

The shares would be released at a price range of around Rs 90-93 per share, according to sources who spoke with Moneycontrol. At the higher price range, the firm plans to raise Rs 45 crore.

The list of investors in TBICL includes the name of important investor Ashish Kacholia, according to the DRHP document.

Concerning TBI Corn Ltd. (TBICL):

TBICL (previously known as "The Best India") is promoted by Yogesh Laxman Rajhans. In 2000, Best India was formed.

TBICL is a significant participant in the milling of maize. TBICL is an Indian company based in the Sangli region of Maharashtra that produces premium corn/maize grits and associated goods. TBICL provides a range of goods that are made without the use of chemical additives or preservatives and are free of genetically modified organisms. These items include clean and fat-free corn grits/meals, corn flakes, stone-free broken maize and corn flour, and turmeric fingers.

Items under dispute:

According to the DRHP, the proceeds from the new issuance will be used for working capital requirements that are incremental as well as for the growth of the current unit.

According to the filing data, TBI Corn plans to instantly address the demands of its overseas clients, moving its attention away from local demand. To keep up with the rising demand, current units must be expanded. aridGrowing worldwide population and shifting food consumption habits are driving growth in the milling business. In response to the increased demand for convenient and ready-to-eat food items, the extruded snack business makes extensive use of dry milled maize products.

financial circumstances

Operating revenue for TBI Corn was Rs 70.37 crore for the six months that ended in September 2023 and Rs 115.47 crore for the six months that ended in March 2022–March 2023. The profit for the six months ending in September 2023 was Rs 6.67 crore, compared to Rs 6.37 crore for the months ending in March 2022 to March 2023.

EBITDA was recorded at Rs 11.10 crore for the April 23–September 23 period and Rs 11.37 crore for the June 22–March 23 period. The reported profit margin was 9.48%, while the EBITDA margin was 15.78%. the time frame of April 23–September 23. Between June 22 and March 23, the profit margin was 5.52 percent, while the EBITDA margin was 9.85 percent.

As of September 2023, the debt-to-equity ratio was at 0.46. RoE stands for 16.82%.

danger

The top ten clients, whose sales of Rs 23.24 crore and Rs 55.26 crore, respectively, accounted for about 33.19 per cent and 39.75 per cent of the total revenues earned on September 30, 2023, and March 31, 2023, constitute the basis for the operations. correspondingly. The top five states—Maharashtra, Gujarat, Tamil Nadu, Karnataka, and Madhya Pradesh—are what determine domestic sales.

The issue's primary managers are Ekadrishta Capital and Swastika Investmart. It is suggested that the shares sold in this offering be listed on the NSE's SME platform.