Srinagar – Sarveshwar Foods Pvt. Ltd., a leading rice exporter from Jammu & Kashmir, announced its plans to enter the capital market with an Initial Public Offering (IPO) on Saturday. According to the company’s CEO, Mr. Rohit Gupta, the IPO will comprise 6,467,200 equity shares with a face value of Rs 10 each (RS – Relative Strength: Price Strength Index).
Sarveshwar is engaged in the processing and marketing of both Basmati and non-Basmati rice—branded as well as non-branded—for domestic and international markets. Among the company’s financial experts present at the event were J&K Jain, Dr. Gayatri Tandon (a senior official), and Mr. Asit S. Mehta, CEO of Asit C. Mehta Investment Intermediates Ltd.
Mr. Gupta stated that the funds raised through the proposed public issue will be used to partly finance working capital requirements, invest in the subsidiary company, cover issue-related expenses, and support general corporate purposes. He further noted that one-third of the IPO proceeds will be allocated to commercial development and organic agriculture, while two-thirds will be used to settle the company’s existing debts.
According to Gupta, the issue will be offered through the Book Built process, in which 50% of the net issue will be allocated to retail investors and the remaining 50% to non-retail investors on a proportionate basis. “The equity shares are proposed to be listed on the SME Platform of the National Stock Exchange of India (NSE),” he added.
Sarveshwar Foods Pvt. Ltd., established in 2004 and headquartered at Gummat in Jammu & Kashmir, is primarily engaged in the processing and marketing of various rice varieties in both domestic and international markets. Gupta added that the company currently operates through two rice milling and processing units, one located at Seora and the other at SIDCO.
In addition to conventional and organic branded and non-branded rice, the company also deals in other organic products such as dried fruits, pulses, lentils, flours, oats, spices, flaxseeds, and more. The company holds ISO 22000:2005 certification, along with BRC & HACCP, valid APEDA registration, and wholesale certifications such as USFDA & GFSI from Costco.
M/S Sarveshwar Foods, Jammu, is set to launch the state’s upcoming public offering. Gupta said that 8,500 farmers in Jammu and Kashmir have benefited from the rice–wheat and organic farming projects, and the number of farmers adopting organic agriculture will continue to grow, as approximately one-third of the IPO funds will be directed toward the development of commercial operations and organic farming. Along with the company’s strong historical performance and future projects, two-thirds of the IPO funds will be used to repay the company’s debts.
Gupta stated that the company has successfully converted over 9,000 kanals of conventional agricultural land into organic farmland. These farmers have been certified under the National Programme for Organic Production (NPOP) and the National Organic Program (NOP) for meeting organic farming standards set by the International Federation of Organic Agriculture Movements (IFOAM).
“For the six-month period ending September 30, 2017, and for the financial year 2017, our consolidated revenues stood at Rs 2,571 million and Rs 4,178 million, respectively, while the adjusted profit after tax was Rs 79.29 million and Rs 129.64 million, respectively. Additionally, export revenues for the six-month period and the financial year were Rs 204 million and Rs 438 million, while domestic sales amounted to Rs 1,328 million and Rs 3,741 million,” he added.
