IPO Details
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About Mahamaya Lifesciences Ltd IPO
The IPO of Mahamaya Lifesciences Ltd consists of a fresh issue and an offer for sale. The fresh issue consists of up to 56,38,800 equity shares, while the offer for sale comprises up to 5,40,000 equity shares. It’s a 100% book-built offer.
Objectives of Mahamaya Lifesciences Ltd IPO
- Purchase of equipment for existing formulation plant
- Funding capital expenditure towards setting up of a new technical manufacturing plant
- Construction of warehouse building and purchase of machinery
- Funding working capital requirement of the company
- General corporate purposes
Mahamaya Lifesciences Ltd IPO Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to up to 56,38,800 equity shares |
Offer for Sale | Up to 5,40,000 equity shares |
EPS in ₹ for FY 24 | 3.80 |
Mahamaya Lifesciences Ltd IPO Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Investors | Not less than 15% of the net offer |
Retail Individual Investors | Not less than 35% of the net offer |
Industry Outlook
The overall Indian pesticide industry is estimated to increase at a CAGR of around 8% during the period 2023-29, on account of an upward growth expected in the international market and a likely increase in domestic usage of pesticides in India. While the demand for India's pesticides is likely to remain high, India aims to strengthen the process of backward integration for industry.
It is worth mentioning that the Indian pesticide industry remained resilient even during the pandemic year (2021-22) as exports from the Indian pesticide industry increased by a healthy 22% to 648 thousand tonnes and grew by 37.7% to ₹365 billion on a y-o-y basis.
Company Information
Mahamaya Lifesciences Ltd specialises in the manufacturing of pesticide formulations and supply bulk formulations catering to both Indian agrochemical companies, as well as multinational corporations (MNCs). It began its journey by focusing on import and registration of vital pesticide molecules (Technical) that were not produced domestically in India.
Mahamaya Lifesciences Ltd imported these molecules after a lot of product research and worked on registering them with the Central Insecticides Board and Registration Committee (CIBRC) under the Department of Agriculture, Government of India. After successful registration, it marketed these molecules both as technical and as value-added end-use formulations for both domestic manufacturers and MNCs.
Mahamaya Lifesciences Ltd Strengths
Capability to Introduce Vital products for Indian Agriculture
The company is leveraging its strength in identifying products and markets ahead of the curve and registering them thereby gaining an early mover advantage. This strategy provides it with a market edge of 4-5 years compared to competition.
With the vast experience of promoters, it’s able to identify and introduce vital products into the market as Technical and Formulations. The products that were not manufactured in India are imported after registration by generating necessary data as required by CIBRC.
Development of Export Opportunities of Products
Over the past decade, the company has made investment in registering its products with trusted partners globally. Currently, it has active registration countries like in the Dominican Republic, Egypt, Ethiopia, Jordan, UAE, and Turkey.
Many companies prefer partners who can supply high quality products along with data support for registration of the product in their respective countries. To meet this demand, the company is investing in generating data that can be utilised across multiple markets, giving it a competitive advantage over other exporters.
Cordial Relationships with Suppliers of Raw Materials
The company has built cordial relationships with its manufacturers for technical and bio-stimulants. For other raw materials required for formulations, it works with suppliers in India with whom it maintains good business relationships. This enables it to negotiate favourable commercial terms for its raw materials supplies.
Risks of Mahamaya Lifesciences Ltd IPO
- High Customer Concentration
Mahamaya’s top ten customers constituted 79.18%, 83.14%, 71.12% and 73.09% of its sales for the period ended September 30, 2024 and for the financial year ended March 31, 2024, March 31, 2023, March 31, 2022 respectively. Absence of large number of customers, dependence on few customers and creating a customer concentration risk which may have an adverse impact on its business operations and financial performance.
- Absence of Long-term Agreements
The company has not entered into long-term agreements with its customers for purchasing its products nor for the supply of raw materials with their suppliers. It’s subject to uncertainties in demand/supply and there is no assurance that these customers and suppliers will continue to purchase its products or sell raw materials to it or that they will not scale down their orders. This could impact the business and financial performance of the company.
- Increase in Prices of Raw Materials
Raw materials constitute a significant percentage of the company’s total expenses. Any increase in prices and any decrease in the supply would materially adversely affect the company’s business. Also, any increase in raw material prices that the company cannot pass on to customers could have a significant negative impact on its business.
All Financial Information about Mahamaya Lifesciences
Comparison with peers
| Company Name | Total Income (in ₹ crores) | EPS | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|---|
Mahamaya Lifesciences Ltd | 162.8275 | 3.80 | 21.16 | 17.95 |
Nova Agritech Ltd | 252.5092 | 4.2 | 14.64 | 21.45 |
Bhagiradha Chemicals & Industries Ltd | 410.3264 | 1.75 | 4.46 | 397.59 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- Registrar: KFin Technologies Ltd
- Book Running Lead Manager: Oneview Corporate Advisors Pvt Ltd
Business Model
Mahamaya Lifesciences Ltd is focused on developing and expanding biological crop care products including bio stimulant formulations, plant growth regulators, bio fertilizers, as well as new age bio-fermented insecticides, fungicides and herbicides all designed to be low in toxicity and eco-friendly. The company also invests in registration of new molecules, which, once approved and registered, are distributed within India.
Company Growth Trajectory
The total income of Mahamaya Lifesciences Ltd grew from ₹90.1559 crores in FY 22 to ₹162.8275 crores in FY 24. Its EBITDA margin grew from 6.64% in FY 22 to 8.20% in FY 24. Since its inception in 2002, the company has expanded from the sale of technical to companies, to establishing its own manufacturing facility/plant for formulations in December 2021, located at Dahej, Gujarat.
Ability to develop brands, establish distribution networks across various geographies (consisting of more than 300 dealers spanning across 6 states as of Sept 30, 2024) and core values focused on achieving sustainability through innovative approaches have aided the company’s growth over the years.
Market Position
Incepted in 2002, Mahamaya Lifesciences Ltd markets its own branded products across states such as Punjab, Haryana, Rajasthan, Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, and Telangana through a well-established dealer network. Internationally, it exports its products to countries including the Dominican Republic, Turkey, Egypt, and the UAE.
Mahamaya Lifesciences Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 162.8275 | 137.3991 | 90.1559 |
Profit Before Tax (in ₹ crores) | 7.1172 | 5.0961 | 3.7212 |
Profit / (Loss) for the Year | 5.2186 | 3.7506 | 2.7233 |
EPS in ₹ | 3.80 | 2.73 | 1.98 |
EBITDA | 13.35 | 8.913 | 5.98 |
Mahamaya Lifesciences Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 7.1172 | 5.0961 | 3.7212 |
Net Cash Flow From / (Used in) Operating Activities (in ₹ crores) | (22.5706) | 1.1242 | 2.1615 |
Net Cash Flow From / (Used in) Investing Activities (in ₹ crores) | (2.0907) | (2.8512) | (3.2531) |
Net Cash Flow From / (Used in) Financing Activities (in ₹ crores) | 24.3490 | 2.3550 | 1.3772 |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 1.0889 | 1.4012 | 0.7732 |
How to Check Allotment Status of Mahamaya Lifesciences Ltd?
1. Visit the Registrar’s Website
- Visit the official website of KFin Technologies Ltd and choose ‘IPO Allotment Status’ under ‘Investors’
- Click on any of the links
- Select the IPO from ‘Select IPO’ dropdown
- Enter either Application Number, Demat Account or PAN
- Enter captcha and click on Submit to know the status
2. Check on the Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investor Services' tab. Under 'Investors Services', click on 'Status of Issue Application'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Choose the Issue Type
- Select the Issue Name from dropdown
- Put in either your application number or PAN number
- Check the box ‘I’m not a robot’
- Click on ‘Search’ to know allotment status
How to Apply for Mahamaya Lifesciences Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Mahamaya Lifesciences IPO FAQs
Where can I read more about Mahamaya Lifesciences business?
You can read more about Mahamaya Lifesciences and its IPO from the company’s red herring prospectus (RHP) here.
What is the Mahamaya Lifesciences Ltd IPO?
The IPO of Mahamaya Lifesciences Ltd comprises a fresh issue and an offer for sale of up to 56,38,800 and 5,40,000 equity shares, respectively.
When will the IPO of Mahamaya Lifesciences Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the Director of Mahamaya Lifesciences Ltd?
Krishnamurthy Ganesan is the Director of Mahamaya Lifesciences Ltd.
From where can I read more about the IPO of Mahamaya Lifesciences Ltd?
You can read more about the IPO of Mahamaya Lifesciences Ltd from the company’s draft red herring prospectus here.
