IPO Details
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Schedule of Meir Commodities India Ltd
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About Meir Commodities India Ltd IPO
A 100% book-built offer, the IPO of Meir Commodities India Ltd comprises a fresh issue and an offer for sale. Fresh issue is up to 52,94,118 equity shares while the offer for sale is up to 35,29,412 equity shares.
Objectives of Meir Commodities India Ltd IPO
- Funding working capital requirements of the company
- General corporate purposes
Meir Commodities India Ltd Valuation
| Detail | Information |
|---|---|
Upper Price Band | TBA |
Fresh Issue | Up to 52,94,118 equity shares |
Offer for Sale | Up to 35,29,412 equity shares |
EPS in ₹ for FY 24 | 3.44 |
Meir Commodities India Ltd Share Offer and Subscription Details
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the offer |
Non-institutional Bidders | Not less than 15% of the offer |
Retail Individual Bidders | Not less than 35% of the offer |
Industry Outlook
The Indian sugar industry is no longer just a producer of food and sugar but also a producer of ethanol, which is central to the attainment of the energy transition goals of the government, through blending in petrol and the potential use of ethanol in the production of Biodiesel and Sustainable Aviation Fuel.
India holds a prominent global position as the largest consumer and second largest producer of sugar, influencing global markets significantly with approximately 15% share in global consumption and 20% in production.
Company Information
Incorporated on May 11, 2018, Meir Commodities India Ltd is presently engaged in the domestic and export trading of B2B agriculture-based commodities, with a primary focus on sugar, khandsari and sugar allied products.
The company has been operating as an intermediary in the supply chain, bridging the gap between producers, such as sugar mills and other distributors. In Fiscal 2024, the company emerged as the fourth largest exporter of Khandsari both by value and volume accounting for a share of 4.20% by value and 11.70% by volume exported from India.
Strengths of Meir Commodities India Ltd
One of the established trading players with presence in UAE and Sri Lanka
Meir Commodities India Ltd believes that it’s one of the established agricultural based commodity trading company having presence in India, in UAE and in Sri Lanka, which allows it to strategise and switch over exports/imports from one commodity to another in accordance with regulatory landscape, change in demand or inconsistency in pricing for any commodity during any season.
Diverse product portfolio
The company caters to both domestic and international markets by offering a wide range of products, including sugar and allied products, khandsari, rice, pulses, spices and other agricultural commodities. This diversified product range allows it to cater to a broad spectrum of customers’ needs, both domestically and internationally, ensuring business continuity and resilience. By addressing demand across multiple categories, the company endeavors to mitigate the risks associated with reliance on a single product or market segment.
Supply chain efficiency
The company believes it has developed an efficient supply chain infrastructure, which serves as a cornerstone of its business operations. Its cordial relationships with sugar mills, agricultural producers, and logistic partners enable it to source, store, and distribute commodities seamlessly across domestic and international markets. By maintaining direct engagement with producers, it ensures consistent access to high-quality products while reducing dependence on intermediaries. This approach enhances its operational control, minimises supply disruptions, and supports the timely delivery of goods to customers.
Risks of Meir Commodities India Ltd IPO
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Dependence on few products for revenues: Meir Commodities India Ltd derives the majority of its revenue from trading of sugar, khandsari and sugar allied products and therefore vulnerable to a range of risks associated with the sugar industry.
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Reliance on limited customers for revenue from operations: The company’s revenue from operations is dependent upon a limited number of customers and the loss of any of these customers or loss of revenue from any of these customers could have a material adverse effect on its business, financial condition, results of operations and cash flows.
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Regulatory risks: The company’s trading operations in agricultural commodities including sugar are subject to the regulatory framework established under the Essential Commodities Act, 1955 (“ECA”), which empowers the Government of India to regulate and control the production, supply, distribution, and trade.
All Financial Information about Meir Commodities India
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | EPS | Return on Net Worth (in %) | NAV Per Share (in ₹) |
|---|---|---|---|
Meir Commodities India Ltd | 3.44 | 12.44 | 27.66 |
Sakuma Exports Ltd | 0.27 | 8.28 | 20.58 |
Uma Exports Ltd | 3.01 | 5.36 | 56.17 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- IPO Registrar: KFin Technologies Ltd is the registrar of Meir Commodities India Ltd IPO.
- Book Running Lead Manager: Smart Horizon Capital Advisors Private Limited is the IPO’s book running lead manager.
Business Model
Meir’s diverse product portfolio encompasses a range of agricultural commodities, including sugar and allied products, khandsari, rice, pulses, spices, and other agricultural products. The majority of its products are sold domestically through sale to third-party distributors, who further distribute them down the supply chain. In addition to catering the domestic market, it also undertakes export of sugar, khandsari and rice to Central Asia, Middle East, Asia-Pacific, Africa, Turkey and Europe.
Company Growth Trajectory
The company’s EBITDA margin recorded a marginal increase from 2.28% in FY 22 to 2.60% in FY 24. After establishing its presence in Mumbai, the company secured collaboration with Marex Financial, UK, which allowed it to expand its trading and research portfolio in sugar, allied products and other agriculture commodities. During the 2020-2023 period, the company exported sugar to China, Singapore, Canada, etc., which marked its first step towards becoming a global player.
Market Position
In Fiscal 2024, Meir Commodities emerged as the fourth largest exporter of Khandsari both by value and volume accounting for as share of 4.20% by value and 11.70% by volume exported from India. It has developed its presence in the global trade network, successfully exporting its products to over 15 countries including UAE, Turkey, Singapore, United Kingdom, etc.
Meir Commodities India Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 9215.355 | 15852.096 | 10045.459 |
Profit Before Tax (in ₹ crores) | 133.179 | 336.984 | 214.575 |
Profit After Tax (in ₹ crores) | 78.693 | 247.602 | 155.150 |
EPS in ₹ | 3.44 | 8.25 | 5.17 |
Meir Commodities India Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 133.179 | 336.984 | 214.575 |
Net Cash Flow from Operating Activities (in ₹ crores) | (16.404) | (85.395) | 223.549 |
Net Cash from / (used in) Investing Activities (in ₹ crores) | (971.047) | (45.828) | (67.181) |
Net Cash from / (used in) Financing Activities (in ₹ crores) | 1051.606 | 30.360 | (86.730) |
Cash and Cash Equivalent at the End of the Year | 80.824 | 8.929 | 109.792 |
How to Check Allotment Status of Meir Commodities India Ltd IPO?
1. Visit the Registrar’s Website
Visit the official website of KFin Technologies Ltd and click on any one of the links under ‘IPO Allotment Status’. Select the IPO. Put in your application number, Demat or PAN. Enter captcha and click on ‘Submit’.
2. Check on Bombay Stock Exchange Website
The Bombay Stock Exchange (BSE) also has an IPO allotment status page. Go to www.bseindia.com and find the 'Investors' tab. Under 'Investors', click on 'IPO'. This will take you to the IPO allotment status page. On the BSE IPO page, follow these steps:
- Select 'Equity' from the dropdown menu
- Choose 'Meir Commodities India Ltd' in the next dropdown
- Enter your application number
- Enter your PAN
- Click on ‘Search’ to know the allotment status
3. Verify on the National Stock Exchange Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Meir Commodities India Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'.
On the NSE IPO Bid Verification page, enter:
- Application number
- PAN
Click on ‘Submit’ to know the allotment status.
How to Apply for Meir Commodities India 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.
- Step 4: Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Step 5: 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.
Meir Commodities India Ltd IPO FAQs
What is the Meir Commodities India Ltd IPO?
The IPO of Meir Commodities India Ltd consists of a fresh issue and an offer for sale of up to 52,94,118 and 35,29,412 equity shares.
What are the bidding dates for the Meir Commodities India Ltd IPO?
The bidding dates of the Meir Commodities India Ltd IPO are yet to be announced.
Who is the MD of Meir Commodities India Ltd?
Rahil Irfan Iqbal Shaikh is the MD of Meir Commodities India Ltd.
From where can I read more about Meir Commodities India Ltd IPO?
You can read more about Meir Commodities India Ltd from the company’s draft red herring prospectus here.
