Vishwas Agri Seeds Lists at a Discount at Rs 85 per share on NSE

Vishwas Agri Seeds Limited specialises in processing and supplying seeds to farmers through its extensive distribution network, debuted on the Indian stock market today.

The stock of Vishwas Agri Seeds Limited opened at Rs 85 per share on the NSE SME, indicating a discount of 1.16% compared to the final issue price of Rs 86 per share. The market capitalisation on the NSE stands at Rs 85.15 crore.

IPO Proceeds

The objective of the net issue is to raise funds for various purposes. These include capital expenditure for furnishing the corporate office building, purchasing equipment for setting up a seed testing laboratory, establishing a greenhouse with a fan-pad system, and installing rooftop solar monocrystalline panels (129.6 KW). Additionally, funds will be allocated towards meeting additional working capital requirements and general corporate purposes.

Business Overview

Incorporated in 2013, Vishwas Agri Seeds Limited specializes in processing and supplying seeds to farmers through its extensive distribution network. Operating under the brand name “Vishwas,” the company offers a diverse product portfolio encompassing crop seeds for Groundnut, Soybean, Wheat, Cumin, Green Gram, Black Gram, Research Hybrid seeds for Cotton, Castol, Pearl Millet, Maize, hybrid vegetable seeds such as Chilli, Tomato, Brinjal, Watermelon, Sweet Corn, Cabbage, Onion, Coriander Seeds, Fenugreek, Mustard, Lucerne, Carrot, and more. Vishwas Agri Seeds Limited’s commercial operations, including its seed processing unit, warehouse, and cold storage facility, are situated in Bavla, District: Ahmedabad, Gujarat.

Subscription details

On March 26, 2024, the final day of the IPO window, the IPO witnessed an impressive response, with a subscription rate of 12.21 times. The public issue received remarkable interest, with the retail category being subscribed 11.57 times, while the NII category reached a subscription rate of 12.80 times respectively.

The IPO price was Rs 86, with a face value of Rs 10 per share and a lot size of 1600 shares. The total size of the company’s IPO was Rs 25.80 crore, and the final share issue price was fixed at Rs 86 each.

Conclusion

The crucial question that arises in everyone’s mind is whether to hold onto the shares or book profits. Investors who applied for listing gains have been disappointed, as the stock is listed at a discount of over 1% on the listing day itself, and hence can choose to close the open position. On the other hand, investors with a higher risk appetite may opt to hold the shares for the medium to long term, which could prove to be beneficial.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.