City Crops Agro LTD IPO GMP Today: A Progress in Agricultural Trading
In the vibrant landscape of initial public offerings (IPO), the City Crops Agro LTD IPO GMP Today emerges as a distinguished player, embodying the spirit of innovation and growth in the agricultural sector. This article delves into the intricacies of this landmark event, underscoring its significance for investors and the industry alike.
Contents
- The IPO Overview: A Window of Opportunity
- City Crops Agro LTD IPO GMP Today Details
- Investment Insights: Navigating the Grey Market Premium (GMP)
- Leadership and Vision: Steering Towards Success
- Business Model: A Blend of Tradition and Innovation
- Empowering Farmers: The Ethical Edge
- Financial Analysis: A Closer Look
- The Promising Future: What Lies Ahead
The IPO Overview: A Window of Opportunity
City Crops Agro’s IPO marks a momentous occasion, offering a fresh issue of 60 lakh shares, amounting to ₹15.00 crores. With an IPO price of ₹25 per share, it opens avenues for investors to be part of a journey that redefines agricultural trading. The subscription period, from September 26 to September 29, 2023, witnessed a robust response, culminating in a listing on BSE SME on October 10, 2023.
City Crops Agro LTD IPO GMP Today Details
Here is the table summarizing the details of City Crops Agro Ltd IPO:
| Detail | Information |
|---|---|
| IPO Bidding Period | September 26, 2023 to September 29, 2023 |
| Listing Date | October 10, 2023 |
| Face Value | ₹10 per share |
| Price | ₹25 per share |
| Lot Size | 6000 Shares |
| Total Issue Size | 6,000,000 shares (aggregating up to ₹15.00 Cr) |
| Fresh Issue | 6,000,000 shares (aggregating up to ₹15.00 Cr) |
| Issue Type | Fixed Price Issue IPO |
| Listing At | BSE SME |
| Share Holding Pre Issue | 10,316,760 |
| Share Holding Post Issue | 16,316,760 |
| Market Maker Portion | 300,000 shares |
| Market Maker | Mnm Stock Broking |
The Grey Market Premium (GMP) of City Crops Agro IPO, a critical indicator, reflects the heightened anticipation and confidence among investors. It provides an early glimpse into the potential market performance, underscoring the company’s robust fundamentals and promising future.
Minimum and Maximum Investment by Retail Investors and HNI
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 6000 | ₹150,000 |
| Retail (Max) | 1 | 6000 | ₹150,000 |
| HNI (Min) | 2 | 12,000 | ₹300,000 |
City Crops Agro IPO Promoter Holding
- Promoters: Mr. Kaupilkumar Hasmukhbhai Shah and Mrs. Shitalben Kaupilkumar Shah
- Share Holding Pre Issue: 86.51%
- Share Holding Post Issue: 54.70%
About City Crops Agro Limited
- Incorporation: 2013
- Business: Trading agricultural products (seeds, Rice, Wheat, Onions, Potato, Tomato, Isabgol, Pulses), contract manufacturing of Cucumber, Onion, Castor.
- Agricultural Land: Approximately 47.31 acres
- Location: Ahmedabad, Gujarat
- Employees: Over 8
City Crops Agro IPO Financial Information (Restated Standalone)
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
|---|---|---|---|
| Assets | ₹246.99 L | ₹1,298.96 L | ₹1,402.71 L |
| Revenue | ₹348.90 L | ₹1,775.69 L | ₹2,462.50 L |
| Profit After Tax | ₹4.32 L | ₹48.41 L | ₹117.08 L |
| Net Worth | ₹5.08 L | ₹1,077.14 L | ₹1,194.25 L |
| Reserves and Surplus | ₹4.08 L | ₹45.50 L | ₹162.57 L |
| Total Borrowing | ₹0.51 L | ₹5.01 L | ₹2.01 L |
Key Performance Indicators (KPI)
- Market Cap: ₹40.79 Cr
- P/E (x): 22.03
- Post P/E (x): 34.72
- EPS (Rs): 1.13
- RoNW: 9.80%
Objects of the Issue (City Crops Agro IPO Objectives)
- To meet the working capital requirements of the company.
- General Corporate Purposes.
- To meet the Issue Expenses.
City Crops Agro IPO Review
- Reviewer: Dilip Davda
- Summary: The company trades in agricultural products with third-party contracts. It operates in a highly competitive and fragmented segment. It has performed on an average basis. Based on FY23 earnings, the issue is greedily priced. Suggestion: Skipping this pricey bet.
City Crops Agro IPO Subscription Status (Bidding Detail)
| Category | Subscription (times) |
|---|---|
| Other | 2.15 times |
| Retail | 4.78 times |
| Total | 3.47 times |
Leadership and Vision: Steering Towards Success
Under the proficient guidance of Maulikaben Ashokkumar Shah, the management achieved commendable success. Post the COVID-19 period in December 2020, the company strategized to broaden its distributor network, leading to the inclusion of Kaupilkumar Hasmukhbhai Shah and Shitalben Kaupilkumar Shah on the team. Subsequently, in January 2021, Maulikaben Anantkumar Shah and Jigar Ashok Hebra stepped down from their positions on the Board.
Business Model: A Blend of Tradition and Innovation
At the heart of City Crops Agro is a business model that elegantly combines traditional agricultural trading with innovative practices. The company’s engagement in trading products like seeds, Rice, Wheat, and more, alongside its venture into contract manufacturing, highlights its versatile approach. This blend ensures stability and growth, making it an attractive proposition for investors.
Empowering Farmers: The Ethical Edge
City Crops Agro’s commitment to empowering local farmers is commendable. By sharing yields with farmers working on contractually leased land, the company not only ensures quality produce but also supports the farming community. This ethical approach adds a layer of trust and reliability, enhancing the company’s appeal.
Financial Analysis: A Closer Look
An analysis of City Crops Agro’s financials reveals a company poised for growth. The IPO’s purpose to meet working capital requirements and general corporate purposes is a strategic move to fuel expansion and sustain momentum. The company’s prudent financial planning, evidenced by its efficient use of resources and investments, speaks volumes of its potential for long-term success.
The Promising Future: What Lies Ahead
The City Crops Agro IPO is not just an investment opportunity; it’s a gateway to being part of a company that’s set to redefine agricultural trading. With a vision firmly rooted in innovation and sustainability, City Crops Agro is on a trajectory to not only enhance shareholder value but also contribute significantly to the agricultural sector.
Frequently Asked Questions:
What was the IPO price for City Crops Agro Ltd?
The IPO price was set at ₹25 per share.
What are the main objectives of City Crops Agro’s IPO?
The objectives include meeting working capital requirements, general corporate purposes, and covering issue expenses.
How does City Crops Agro support local farmers?
The company shares part of the yield with farmers working on leased land, contributing to the local farming community.
What differentiates City Crops Agro in the market?
Its blend of traditional trading and innovative contract manufacturing, coupled with ethical practices, sets it apart.
What is the significance of the Grey Market Premium (GMP) for this IPO?
The GMP offers insights into investor sentiment and potential market performance.
Conclusion:
The City Crops Agro Ltd IPO represents a unique blend of opportunity, innovation, and ethical business practices. It’s not just an investment in a company but a stake in a future that promises growth, sustainability, and a profound impact on the agricultural sector. As City Crops Agro forges ahead, it stands as a beacon of progress, inviting investors to be part of a journey that’s set to leave an indelible mark in the realms of agriculture and trade.
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