JAIPUR : Shree Ram Proteins Ltd. is a leading manufacturer of cotton linter, animal feed, cottonseed oil and cottonseed oil cake, tapping markets to raise Rs. 17.33croreto Rs. 19.90 crorethrough SME IPO, which is going to open on 23rd January, 2018 and will close on 25thJanuary, 2018. The company is going to list on NSE Emerge.
The issue price band has been fixed at Rs.27-31 per share and the minimum lot size is at 4000 shares. The objective of the issue is to use the proceeds for working capital purpose.Shree Ram Proteins current manufacturing capacity of cotton seeds is at 450 tons per day and is currently operating at 300 tons per day. Post infusion of the proceeds from IPO, the company is going to operate at its full capacity.
The company manufactures four products catering to animal feed, edible oil and exportmarkets. The company has state of the art fully integrated and automated plant at Rajkot on 16 acres of land, which is sufficient for future expansion plans of the company.
The company’s products are sold across India, Gujarat, Maharashtra, Rajasthan and Punjab are the largest markets. There is still tremendous potential for the company to expand in to other States especially in Southern markets of the country. The company exports its products to China, Japan, Taiwan, Netherlands, South Korea and S. Arabia.
During the current year cotton sown in the country was at 111.55 lakh hectares, as against 92.33 lakh hectares in thelast year, an increase of 21 per cent in the acreage. So, there is plenty of cotton produced in our country for the availability of cotton seed.
Gujarat is the second largest producer of cotton after Maharashtra. India is expected to remain the world’s largest producer in FY18 with an estimated output of 6.1 MT at a growth rate of 6%.
Commenting on the development Mr. LailitkumarVasoya, Managing Director said that, “the biggest opportunity for us is geographical expansion, increasing volumes to existing large customers across our product segments. We are currently working on forward integration in all four products we are currently manufacturing. We are going to add value to all our products and take them to next level for higher realisation which would lead to high profitability”
Shree Ram Proteins has declared revenues of Rs. 157.80 core for the financial year 2017.