Sameera Agro & Infra LTD IPO: Review, Valuation, Date & GMP

Sameera Agro And Infra IPO  - Complete Overview

Sameera Agro and Infra Ltd, initially known as Sameera Homes, started in 2002 with a focus on building and development projects. They've expanded into farming, changing their name to reflect this new venture. Now, Sameera Agro and Infra Ltd is involved in both building quality homes and agricultural activities.

In the construction sector, they specialise in creating various structures, including apartments, townships, multi-storeyed complexes, gated communities, bridges, flyovers, industrial parks, water works, and gas pipelines. Their expertise is evident from successfully completing significant projects across India.

In 2021, they entered the agricultural space, processing and distributing farm products like lentils, beans, and grains. Based near Hyderabad, they aim to expand their presence in Andhra Pradesh. The company, led by Mr. S. S. Murthy, has a history of developing residential areas with flexible payment plans, emphasising quality and customer satisfaction. This diversification showcases their commitment to innovation and growth in both construction and agriculture.

 

Sameera Agro And Infra IPO Overview

Sameera Agro And Infra IPO date is slated to be open for subscription from December 21, 2023, to December 27, 2023. This NSE SME IPO follows a Fixed Price Issue IPO.

Sameera Agro And Infra IPO price is fixed at Rs. 180 per share. The upcoming NSE SME IPO will be listed on January 1, 2024..

The total issue size of this IPO amounts to Rs.62.64 CR. Within this total issue, 50% is issued to retail investors, and 50% is issued to other investors.

 

 

Sameera Agro And Infra IPO timetable (Tentative)

Events	Date
IPO Opening Date	21 December 2023
IPO Closing Date	27 December 2023
IPO Allotment Date	28 December 2023
Refund initiation	29 December 2023
IPO Listing Date	1 January 2024

 

Sameera Agro And Infra IPO Details

IPO Opening & Closing Date	21 December to 27 December 2023
Face value	Rs. 10  per share
Issue Price	Rs. 180 per share
Lot Size	800  Shares
Price of 1 lot	Rs. 1,44,000
Total Issue Size	3,480,000 Shares (aggregating up to Rs. 62.64 Cr)
Fresh issue	3,480,000 Shares (aggregating up to Rs. 62.64 Cr)
Listing at	NSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Kfin Technologies Limited

 

 

Sameera Agro And Infra IPO Lot Details

Application	Lot	Shares
Minimum Lot Investment (Retail)	1 Lot	800
Maximum Lot Investment (Retail)	1 Lot	800
Minimum Lot Investment (HNI)	2 Lot	1600

 

Sameera Agro And Infra IPO Reservation

Retail Shares Offered	50%
Other Shares Offered	50%

 

Company Financial

The company has experienced growth in total assets, total revenue, and net worth from FY 22 to FY 23 (Sep 30). The profit after tax (PAT) increased, along with a rise in reserve & surplus, while total borrowings remained consistent.

(Amount in Lakhs)

Period	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Total Assets	6,053.48	5,808.94	4,022.60
Total Revenue	9,436.52	13,881.83	10,533.56
PAT	692.19	1,003.73	274.17
Net worth	2,569.66	1,877.47	873.74
Reserve & Surplus	1,726.68	1,034.49	452.25
Total Borrowings	323.12	323.12	323.12

 

Revenue Breakup Product-Wise

Sameera Agro And Infra Limited generates substantial revenue from Toor Daal, Urad Daal, and Moong Daal, with no reported revenue from Corn/Maize and Paddy.

(in %age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Toor Daal	4057.70	5,969.18	4002.75
Urad Daal	3255.60	5,136.28	4318.76
Moong Daal	2123.22	2,776.37	2212.04
Corn/ Maize	0.00	0.00	0.00
Paddy	0.00	0.00	0.00

 

Geography-Wise Revenue Breakup

Sameera Agro And Infra Limited receives significant revenue from both Andhra Pradesh and Telangana.

(in %age)

Particulars	Sep 30, FY 23	Mar 31, FY 23	Mar 31, FY 22
Andhra Pradesh	3,727.42	4,858.64	3,686.74
Telangana	5,709.10	9,023.19	6,846.81
Total	9,436.52	13,881.83	10,533.55

 

 

The Objective of the Issue

The company intends to use the net proceeds for the following objectives.

• Construction of Ongoing Project.
• Construction of new Multiplex.
• To meet the existing Working Capital requirement for the agro-business. 
• General Corporate Expenses.

 

Promoters and Management of Sameera Agro And Infra IPO

1. Mr. Satya Murthy Sivalenka
2. Mrs. Kameswari Satya Murthy Sivalenka

Pre-issue Promoter Shareholding	97.49%
Post-issue Promoter Shareholding	69.00%

 

Sameera Agro And Infra IPO Lead Managers

• First Overseas Capital Limited

 

Peers of Sameera Agro And Infra IPO

Sameera Agro And Infra Limited shows a more favorable valuation compared to its peer, JK Agri Genetics Ltd, based on undisclosed financial metrics.

Name of the Company	Face value (Rs. per Share)	P/ E	EPS (Basic) (Rs.)
Sameera Agro And Infra Limited	10	15.11	11.91
JK Agri Genetics Ltd	10	-16.26	-23.29

 

Evaluation

The IPO is priced in the range of Rs 180 per share.

Evaluation of P/E Ratio:
- Considering the FY23 EPS of Rs 11.91 from the last year, the resulting P/E ratio is 15.11x.
- Taking into account the weighted EPS of Rs 8.61 for the last three years, the P/E ratio amounts to 20.90x.

Consequently, the IPO Price range at a P/E of 15.11x to 20.90x. is considered slightly overvalued.

 

Dividend Policy

The company hasn't paid dividends in past fiscal years. Whether we can pay them in the future depends on factors like profits, past dividend trends, capital needs, legal restrictions, and other relevant considerations evaluated by our Board.

 

 

IPO's Strengths

Strong Brand and Customer Focus: Our brand thrives on customer satisfaction, from inquiries to possession. Post-sale engagement builds goodwill and boosts sales, especially in Hyderabad and Secunderabad.

Experienced Leadership: Led by seasoned promoters, our team's 25+ years of real estate expertise drives strategic project identification and market anticipation.

Influence on Location and Quality: Projects like Savera and Sez Greens are known for quality, shaping desirable destinations in Hyderabad and Secunderabad.

Affordable Residential Offerings: Our apartments cater to small and medium-income groups, offering affordable options from 600 to 1800 sq ft. Ongoing projects in Dharmaram Village focus on cost-effective housing.

Cordial Relations and Satisfaction: Our approach builds strong relations with customers and contractors, ensuring repeat business and efficient project execution for customer satisfaction.

Growing Agri Product Demand: Aligned with the trend, our agri products see increased demand, presenting growth opportunities in the expanding agri product consumption landscape.

 

IPO's Weaknesses

Agro Business Impact: Our financial stability heavily depends on Agro business, a major revenue source. Adverse factors affecting Agro demand or market position pose significant business risks, impacting revenue and reputation.

Geographical and Supply Chain Vulnerability: Revenue concentration in Telangana and Andhra Pradesh poses risks to regional events. Supply chain disruptions in Agro products may impact operations and financial conditions.

Seasonal and Project Challenges: Seasonal variations in Agro business and the risk of project delays contribute to unpredictability. Deviations from plans can impact costs, revenues, and overall profitability.

Labour and Transportation Risks: Reliance on contract labour poses work stoppage risks. Dependency on third-party transportation introduces uncertainties, affecting supply chains.

Working Capital and Customer Concentration: Efficient working capital management is critical, with a focus on debtors and inventories. Customer dependence poses risks; losing significant clients could materially impact financial results.

Supplier Dependency Concerns: Relying on a few suppliers introduces risks of delays or inadequacies, potentially affecting business operations and profitability.

 

IPO GMP Today

The GMP of Sameera Agro And Infra IPO has not started yet.

 

Conclusion

Sameera Agro And Infra Limited, with a history dating back to 2002, brings a blend of construction and agricultural activities. The company, now entering the IPO market, has showcased its commitment to quality construction projects and has ventured into the agro-business. While the IPO is priced at Rs. 180 per share and carries certain strengths like a strong brand and experienced leadership, it faces challenges such as dependence on the agro sector and geographical vulnerabilities. Investors should carefully evaluate the risks and prospects before considering participation.

 

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

 

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