NFP Sampoorna Foods IPO

About NFP Sampoorna Foods IPO

The IPO of NFP Sampoorna Foods Ltd comprises a fresh issue of up to 24,41,115 equity shares. There’s no offer for sale in this IPO. It’s a 100% book-built issue. The price band of the issue is TBA and the lot size is TBA.

The IPO opening date is TBA. The closing date is TBA. The credit of shares to the demat account will take place on TBA. The listing date is TBA. The initiation of refunds will take place on TBA. The allotment date is TBA.

Objectives of NFP Sampoorna Foods IPO

• Funding of working capital requirements of the company
• General corporate purposes
• Issue expenses

Industry Outlook

India is among the largest cashew-producing countries in the world. The cashew industry has large economic significance as it employs more than 10 lakh people on farms and factories in rural areas. The cultivation of cashews in India covers a total of 0.7 million hectares of land, and the country produces over 0.8 million tonnes (MT) annually.

Also, India exports cashews to over 60 countries spread across different parts of the world. In FY23, in volume terms, India's cashew exports to UAE stood at 17.21 million kg, growing by 3.54% from 16.6 million kg of exports recorded in the previous year.

The Government of India and the cashew export promotion council have undertaken several initiatives for the ease of exports and growth of the cashew industry. As non-financial assistance to exporters, many trade delegations, buyer-seller meets, fairs, development workshops, and research and development data are provided. The cashew market size is estimated at USD 7.82 billion in 2024, and is expected to reach USD 9.20 billion by 2029, growing at a CAGR of 3.31% during the forecast period (2024-2029).

Company Information

NFP Sampoorna Foods Limited is engaged in processing raw cashew nuts into finished cashew kernels of various grades, with a presence in various states. It mainly procures raw cashew material by way of import from Africa. It focuses on the quality of its products to increase its presence across the country. The company is primarily engaged in the processing and trading of cashew nuts. It’s in the business of trading cashew into B2B and B2C markets and sells cashew to the wholesalers and consumers.

Risks of NFP Sampoorna Foods IPO

• Dependence on Manufacturing Facilities

The company’s business is dependent and will continue to depend on its manufacturing facilities, and it’s subject to certain risks in its manufacturing process. Any slowdown or shutdown in its manufacturing operations or strikes, work stoppages or increased wage demands by its employees that could interfere with its operations could have an adverse effect on its business, financial condition and results of operations.

• No Own Corporate Office and Warehouse

The company operates from leased and rented premises, with its corporate office and warehouse. Any termination or non-renewal of these agreements may require it to vacate the premises and identify alternative locations, which could result in loss of business and revenue.

• Inability to Procure Quality Raw Material

The main raw material required is Raw Cashew Nuts (RCN) for its products. The RCN is agro based and is subject to price fluctuations as a result of seasonality, weather, demand in local and international markets and other factors. If it’s unable to procure quality raw material in a timely manner, its business, results of operations and financial conditions may be adversely affected.

Anchor Investor Bidding Date TBA

IPO Registrar and Book Running Lead Managers

• IPO Registrar: Skyline Financial Services Pvt Ltd
• Book Running Lead Manager: 3Dimension Capital Services Ltd

Business Model

In the business of trading cashew into B2B and B2C markets, NFP Sampoorna Foods Ltd sells cashews to wholesalers and consumers. It has been importing the RCN (Raw Cashew Nut) directly from farms of Africa. It's procuring the best quality raw cashew nuts at the best competitive rates to provide crispiest and crunchiest cashew to every household in the country.

Company Growth Trajectory

The revenue of operations of NFP Sampoorna Foods Ltd grew from ₹7.4869 crores in FY 22 to ₹16.7468 crores in FY 23. Its EBITDA margin during the same period increased from 0.57% in FY 22 to 4.65% in FY 23, while PAT margin grew from -0.85% to 2.48%. Quality assurance coupled with established client relationships has helped the company grow over the years.

Market Position

Established in 2019, NFP Sampoorna Foods Ltd, the company adheres to stringent quality control measures and has obtained certifications such as ISO 9001:2015 and ISO 22000:2018, underscoring their dedication to quality management and food safety. These certifications validate its commitment to delivering superior cashew products that meet international standards and meet customer expectations. It mainly procures raw cashew material by way of import from Africa.

How to Check Allotment Status of NFP Sampoorna Foods IPO?

1. Visit the Registrar’s Website

• Visit the official website of Skyline Financial Services Pvt Ltd
• Click on ‘Public Issue’ from ‘Investors’ dropdown
• Choose ‘Company Name’
• Enter DPID/Client ID or Application Number or PAN Number
• Click on ‘Search’ to know the status

2. Check 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 NFP Sampoorna Foods Ltd. 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:

• Company name from dropdown
• Application number
• PAN

Then click 'Submit' to know the allotment status.

How to Apply for NFP Sampoorna Foods IPO?

To apply for this IPO:

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: 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.