Sanjeevani Agrofoods IPO

About Sanjeevani Agrofoods IPO

Sanjeevani Agrofoods Limited IPO is an IPO of up to 52,80,000 equity shares. It consists of an offer for sale of up to 12,33,600 equity shares and a fresh issue of up to 40,46,400 equity shares. The lot size and price range of the IPO are TBA. The listing of the shares will take place on TBA. The shares will be allotted on TBA. The credit of shares to the demat account will take place on TBA, and the initiation of refunds will take place on TBA.

Objective of Sanjeevani Agrofoods IPO

• Capital Expenditure: This involves expenditure in relation to the upgradation of the registered office of the company.
• Branding, Positioning, Marketing and Advertising Expenses: This expense relates to branding and marketing of their brands 'Sanjeevani Organics' and 'Barsana Magic'.
• Working Capital Requirements: This refers to the funds needed to cover day-to-day operating expenses, such as salaries, rent, utilities, and inventory.
• General corporate purposes.

Industry Outlook

Fast-moving consumer goods (FMCG) is the fourth-largest sector in the Indian economy. There are three main segments in the sector: food and beverages, which accounts for 19% of the sector; healthcare, which accounts for 31% of the share; and household and personal care, which accounts for the remaining 50% share.

The Indian government aspires to achieve a nine percent increase in milk production, allowing India to account for 33 percent of global milk production. The government is stimulating milk production by increasing the profitability of dairy farming. To do so, the government is allocating $132 crore over five years (2021-2026) to facilitate the growth of the dairy sector through special schemes and programmes. The India Fiscal Year (IFY) (April-March) 2023-2024 budget allocates to India’s Department of Animal Husbandry and Dairying (DAHD) $5.28 crores. There has been a 40 per cent increase over the preceding year.

In India, the government has been promoting organic farming in the country since 2015-16 through the schemes of Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for Northeastern Region (MOVCDNER). Both schemes stress on end-to-end support to farmers engaged in organic farming, i.e. from production to processing, certification and marketing, and post-harvest management support, including processing.

Company Information

Sanjeevani Agrofoods Limited is based in the foothills of the Himalayas. The company started with selling agricultural produce, later they ventured into organic farming. Their primary objective is to promote organic and natural agriculture and guide farmers through training and certification. They encourage the concept of sustainable and low-cost farming by providing the farmers with seeds and training to use various bio-manures, bio-pesticides, and composting methods. This procedure lifts the burden of upfront costs of seeds and other inputs off the farmers and enables them to produce high-quality, certified organic products. They pay all the fees associated with acquiring the necessary organic certifications, which enables them to purchase the harvested crops and herbs at a premium market price for their associated processing units. Their trained field staff are stationed at these cluster sites to train farmers, and to oversee procurement directly from farmers at the procurement centre located within each cluster.In 2017, the company also emphasised its focus on organic dairy products along with the existing Organic Agriculture segment. This strategic move allowed itto excel in the Organic Dairy segment, ultimately achieving USDA (United States Department Of Agriculture) certification as an organic dairy company.

Risks of Sanjeevani Agrofoods IPO

• They depend on third-party facilities for processing their organic raw materials and will continue to depend on them moving forward. Any disruptions at these facilities, particularly because they lack formal agreements, could have a detrimental effect on their business, operations, and financial stability.

• The supply of organic agricultural produce is influenced by seasonal factors, weather conditions, diseases, and pests, which may not align with the seasonal demand for their products. These discrepancies can negatively impact their business, financial condition, operational results, and future prospects.

• They generate a substantial portion of sales from their operations from exports outside India. Any adverse developments affecting their operations in these regions could have an adverse impact on their revenue and results of operations.

How To Check Allotment Status of Sanjeevani Agrofoods IPO?

You can check the allotment status of shares either on the website of the Bomaby Stock Exchange (BSE) or on the website of the registrar Bigshare Services Private Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Sanjeevani Agrofoods Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the Bigshare Services Private Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Sanjeevani Agrofoods Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Sanjeevani Agrofoods 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.