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Proventus Agrocom Limited IPO

7 Mins 24 May 2023 0 COMMENT

Proventus Agrochem Limited is an integrated health food brand founded in 2015. The brand, as a natural progression across the value chain, has positioned itself as ‘ProV’ with an aim to capture market share in the dry fruits, nuts and staple category.

Products

Proventus offers its services as a co-packer to a variety of large institutions with a daily capacity of packing 1,00,000 packages of agri produce. The company aims filling in the large vacuum prevailing in the “healthy snacking” space in India especially in the dry fruits, nuts, seeds and berries category. It provides a one stop shop of whole sale products, secondary processed goods and packaging - farm to shelf

Business Model

The company aims at creating expertise in healthy food products and build the revenue stream by moving across the value chain from origination to distribution and creating an integrated business model - from “farm to homes”.

Proventus ventured into the Retail space with its own brand ProV in 2016, looking at selling staples across a variety of retail channels - with a focus on e-com platforms, brick and mortar via distributors, a direct-to-consumer distributor network and finally with its developing network of retail Stores - current being in APMC, Navi Mumbai.

The company has achieved upwards of 1.5 lakh MT of monthly ProV sales in under 2 years of launch covering 5 brand categories across 12 commodities crossing over 65+ SKUs.

IPO details

IPO subscription dates: May 24 to May 26, 2023

Price: Rs. 771 per share

Lot size: 160 shares (i.e., Rs. 1,23,360)

IPO Objective

  • Funding working capital requirements of the company and its material subsidiary namely, Prov Foods Private Limited
  • General corporate expenses

Company Financials

Particulars

For year ended Dec 31, 2022

For year ended March 31, 2022

For year ended March 31, 2021

Net worth (in lakhs)

6,167.31

5,966.75

5,844.50

Total Borrowings (in lakhs)

3,061.13

3,444.05

2,940.72

Total Revenues (in lakhs)

31,909.63

40,434.57

30,173.92

Basic/Diluted earnings per share

7.64

4.59

7.56

 

Strengths

  • Diversified product portfolio focused on various consumer segments and markets. As of February 28, 2023, the company’s diversified product portfolio included more than 100 SKUs across all our product segments.
  • The brand has extensive distribution network, arrangement with reputed chain stores and growing e-commerce channel. it is present in over 15 states in India.
  • It has an established and stable sourcing base with import from 8 countries across the globe and having relationship with more than 45 growers and / or suppliers themselves.
  • Optimised processes well to avoid wastage, thus saving cost efficiently.
  • Experienced promoters and management team.

Major Business-Related Risk

  • Inadequate or interrupted supply and price fluctuation can directly affect the business.
  • Any significant interruption in continuing operations of our production or cold storage facilities could have a material adverse effect on the business.
  • Any natural calamities or major seasonal change could impact the quality and quantity.
  • They have experienced negative cash flows from operating, investing and financing activities in the past.
  • They do not own their registered office and other business premises.

How to apply for a Quick IPO on ICICIdirect?

  • Select IPO

Go to the IPO section, select the IPO you want to apply for from the list, and click on ‘Apply’.

  • Fill in the required details

Fill in the number of shares you want to buy. To apply at maximum price, check the cut-off price box and amount is auto-calculated. If you want to apply at some other price within the price band, then you can enter the price manually by clicking on the “Add bid” option.

  • Confirm your request

Click on proceed to confirm the order. You can view the placed order under “Order book”. If you are applying using UPI, check the A/C and UPI details before clicking on proceed. You will get a UPI link through which the payment can be made.

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