IPO Details
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About Seedworks International Ltd IPO
The IPO of Seedworks International Ltd is a 100% book-built offer. The IPO has no fresh issue but only an offer for sale up to 51,970,282 equity shares of face value of ₹2 each.
Objectives of Seedworks International Ltd IPO
The selling shareholders will be entitled to the entire proceeds of the offer after deducting their respective portion of the offer expenses and relevant taxes thereon. The company will not receive any proceeds from the offer and all proceeds will be received by the selling shareholders.
Seedworks International Ltd IPO Valuation
Seedworks International Ltd IPO Share Offer and Subscription Offer
| Investor Category | Shares Offered |
|---|---|
QIBs | Not more than 50% of the net offer |
Non-institutional Bidders | Not less than 15% of the net offer |
Retail Individual Bidders | Not less than 35% of the net offer |
Industry Outlook
The global seed industry has grown at a CAGR of 2.8% from 2018 and is estimated to be valued at USD 49.2 billion in 2024. The growth in the industry is attributed to increasing demand of food with growing population, trend of using branded seeds over saved seeds, companies expanding their global footprints and innovations in the seed technologies. Further the industry is forecasted to reach USD 68 Billion by 2030 with a CAGR of 5.5%.
Company Information
Seedworks International Ltd is a seed research and development company engaged in research, production and marketing of hybrid seeds for rice, cotton, pearl millet, mustard, vegetables and fruits and open-pollinated variety (OPV) seeds for rice, wheat and mustard.
It’s the second fastest growing Indian seed company in terms of revenues between Fiscal 2021 and Fiscal 2024 with a CAGR of 11.98%. The company is ranked third in cotton seeds, fourth in hybrid rice, and fourth in pearl millet seeds, each in terms of volume of seeds sold in India in Fiscal 2024.
Strengths of Seedworks International Ltd
Second Fastest Growing Seed Company in India, with Demonstrated History in Expanding Crop Portfolio and Commanding a Leading Position in Key Crop Categories across India, the Philippines and Nepal
Seedworks International Ltd is the second fastest growing seed company in India in terms of revenues between Fiscal 2021 and Fiscal 2024, amongst the peers. The company has over the years established leadership positions in key product categories. It’s ranked third in cotton seeds, fourth in hybrid rice, and fourth in pearl millet seeds, each in terms of volume of seeds sold in India in Fiscal 2024.
Robust Research and Development Capabilities Backed by Advanced Technology Infrastructure and Collaborations
The company’s R&D-driven approach, combined with its extensive experience and strategic collaborations, positions it uniquely to overcome potential barriers in the seeds industry. High entry barriers include long development cycles, with typical cycles for R&D, product development and testing spanning six to seven years, and need for a substantial and diversified germplasm pool.
Differentiated Products with Deep Farmer Connect Resulting in Strong Brand Equity
The company’s differentiated products with superior attributes have led to strong brand equity with farmers. Seed quality, superior traits and brand play a crucial role as farmers, being very discerning customers, tend to stick to the same seed suppliers if they are happy with a particular product.
Risks of Seedworks International Ltd
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Exposure to Weather Conditions, Crop Diseases, and Pest Attacks: The company’s business is sensitive to weather conditions, crop diseases and pest attacks. Any adverse conditions, diseases or pest attacks may adversely impact its product portfolio, which could have an adverse impact on its business prospects, results of operations, financial condition and cash flows.
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Dependence on Grower Farmers and Risks in Network Management: The company relies on its network of grower farmers to provide it with hybrid seeds for our production process, and an inability to effectively manage this network may have an adverse effect on its business, operations and cash flows.
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Seasonality of Business and Fluctuations in Financial Performance: The company’s business is seasonal in nature and its results of operations and cash flows may fluctuate on a quarterly or seasonal basis.
All Financial Information about Seedworks International
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company | Revenue from Operations (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) | NAV per Share (in ₹) |
|---|---|---|---|---|
Seedworks International Ltd | 522.688 | 0.40 | 5.74 | 7.28 |
Kaveri Seed Company Ltd | 1148.405 | 54.58 | 23.04 | 240.29 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Managers
- Registrar: KFin Technologies Ltd
- Book Running Lead Managers: Equirus Capital Private Limited, DAM Capital Advisors Ltd and SBI Capital Markets Ltd
Business Model
Seedworks International Ltd is a seed research and development company. It’s into research, production and marketing of hybrid seeds. Its product offerings are an outcome of its R&D pipeline, with 10 field crops and 28 vegetable hybrids in advanced stages of commercialisation, as of September 30, 2024.
Company Growth Trajectory
The company’s revenue from operations jumped from ₹457.158 crores in FY 22 to ₹522.688 crores in FY 24. Its total income grew from ₹460.837 crores in FY 22 to ₹527.170 crores in FY 24.
Seedworks International Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crore) | 527.170 | 489.930 | 460.837 |
Restated Profit Before Tax (in ₹ crore) | 14.667 | 12.475 | 34.430 |
EPS in ₹ | 0.40 | 0.44 | 2.00 |
Seedworks International Ltd Balance Sheet
| Parameters | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Restated Profit Before Tax (in ₹ crore) | 14.667 | 12.475 | 34.430 |
Net Cash Flow From Operating Activities (in ₹ crore) | 100.383 | 18.178 | (10.940) |
Net Cash Flow Used in Investing Activities (in ₹ crore) | (51.626) | (5.940) | (4.072) |
Net Cash Flow Generated from / (used in ) Financing Activities (in ₹ crore) | (23.297) | (7.806) | 1.955 |
Cash and Cash Equivalents at the End of the Period (in ₹ crore) | 48.676 | 23.216 | 18.784 |
How to Check Allotment Status of Seedworks International Ltd IPO?
- Visit the Registrar’s Website
Visit the official website of KFin Technologies Ltd and click on any one of the links. Choose the IPO name followed by application number, Demat account or PAN. Enter captcha and click on Submit to know the status.
- 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:
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Select 'Equity' from the dropdown menu
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Choose 'Seedworks International Ltd' in the next dropdown
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Enter your application number
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Enter your PAN
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Click 'Search’ to know allotment status
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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 Seedworks International 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
Then click 'Submit' to know the allotment status.
How to Apply for Seedworks International Ltd?
- 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.
Seedworks International Ltd IPO FAQs
What is the Seedworks International Ltd IPO?
The Seedworks International Ltd IPO comprises only an offer for sale of up to 51,970,282 equity shares. It is a 100% book-built offer with no fresh issue.
When will the IPO of Seedworks International Ltd go live?
The exact dates of the IPO are yet to be announced.
Who is the MD and CEO of Seedworks International Ltd?
Dr. Venkatram Vasantavada is the MD and CEO of Seedworks International Ltd.
From where can I read more about the IPO of Seedworks International Ltd?
You can read more about the IPO of Seedworks International Ltd from the company’s draft red herring prospectus here.
