The Initial Public Offering(IPO) for the week is-
Upsurge Seeds of Agriculture Limited-
Upsurge Seeds of Agriculture limited is a technology-driven seeds Company that is in the business of growing, developing, processing, and marketing a variety of seeds for a number of crops and vegetables. It is involved in seed processing where the improved genetic material of the breeder seed is grown and multiplied into foundation seed, which is grown and multiplied into commercial seeds and then sold in the market for crop production. There are a number of seeds being sold for each crop depending on the suitability of seeds for varying agro-climatic conditions like the availability of water, crop duration, and soil attributes across different geographic regions in India. The breeder seeds are genetically pure seeds produced from basic nucleus seed stock and procured from state government agricultural universities like Mahatama Phule Krishi Vidyapeeth, Rajasthan Agricultural Research Institute, and Indian Agricultural Institute.
The company enters into a seed production agreement with the farmers for leasing their land to develop and produce the foundation and commercial seeds. The farmer is engaged to carry out agricultural operations over the leased land but the ownership of the entire crop is retained by the company. The farmers are compensated for producing the seeds and for the expenses such as land preparation, irrigation, sowing, fertilization, weeding, pest control, harvesting, and thrashing. These grown commercial seeds are processed at the processing unit equipped with modern technology and are spread across an area of 45,000 sq. feet at Kuvada, Rajkot.
The company sells its seeds under the brand name “USA seeds” and is accredited with ISO 9001:2015. It produces seeds for more than 40 different crops and vegetables and has operations across India covering Gujarat, Maharashtra, and Rajasthan with more than 75 varieties of crops. The product portfolio of the company includes crop seeds for groundnut, wheat, cumin, green gram, black gram, and vegetable seeds for onion, coriander seeds, and fenugreek.
The promoters of the company are Mr. Arvindbhai Jadavjibhai Kakadia, Mr. Viken Jentilal Kakadiya amd Mrs. Sonalben Arvindbhai Kakadia. The objects of the issue are to meet working capital requirements and the listing would enhance the brand image of the company.
The company had revenues of Rs 17.58 crore with a net profit of 21.92 lakh (Year ended March 31, 2020), revenues of Rs. 62.61 crores with a profit of Rs. 85.31 lakh (Year ended March 31, 2021), and revenue of Rs. 75.64 crores with a net profit of Rs. 3.96 crores (Year ended March 31, 2022).