Aelea Commodities Limited is engaged mainly n processing and trading cashews. Aelea Commodities IPO plans to raise Rs 51.00 crores. The issue is entirely a fresh issue of 53.69 lakh shares.
IPO opens
July 12, 2024
IPO Closes
July 16, 2024
IPO Size (Rs.)
₹51.00 Cr
IPO Size (shares)
5,368,800 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹91 to ₹95 per share
Minimum Lot
1200 Shares
Listing At
BSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Ekadrisht Capital Private Limited
Registrar
Maashitla Securities
Market maker
Ss Corporate Securities
About Aelea Commodities :
Company was originally incorporated as Private Limited, on November 05, 2018.
It is engaged in the processing and trading of cashews, while also actively engaged in the trading of a diverse range of commodities such as Sugar, Pulses, Soybean, Rice, Wheat Flour, and more.
In the realm of cashews, they have successfully established a presence in both B2B and B2C segments, allowing them to cater to the nuanced requirements of both wholesale clients and individual consumers. On the other hand, they trade in products like Sugar, Pulses, Soybean, Rice, Wheat Flour, etc., is exclusively conducted through B2B channel.
Company engages in importing Raw Cashew Nuts (RCN) from diverse African nations, including Benin, Tanzania, Burkina Faso, Senegal, and Cote d’Ivoire, necessitating substantial quantities and tying up working capital funds. They specialize in trading RCN and Cashew Kernels for consumption. Additionally, it trades in by-products from sugar mills, such as Bagasse.
In the financial year 2022, the Company undertook a significant corporate initiative by establishing a cashew processing plant in Surat with a operational capacity of 40 metric tons per day.
The Promoters of company are Hozefa S Jawadwala, Satyanarayan Patro, Ashok Patel, Firoz Gulamhusein Hathiyari, Rashida Hozefa Jawadwala, Sonali Malla, Sumita A Patel, and Farida Firoz Hathiyari.
Financials:Aelea Commodities IPO
Particulars/ Rs Lacs
May 31, 2024
2024
2022
2021
Total Revenue
2,755.63
14,237.26
10,894.74
10,275.75
Profit after Tax
280.36
1,222.32
191.22
1,063.11
Share Capital
1,500.00
1,500.00
5
5
Net worth
2,373.07
2,330.60
1,652.72
1,623.22
Net Asset Value –
15.82
15.54
11.02
10.82
Total borrowings^
4,120.36
4,077.32
3,327.40
2,130.76
Post issue Share Capital
2032
FV
10.0
IPO price
95.0
EPS Fy24
6.0
PE Fy24
15.8
Market cap in Lacs
19,304
Market cap / Sales
1.36
Anchors: Aelea Commodities IPO
Aelea Commodities IPO: Salient Points
In the upcoming period, the company intends to set facility to transform Cashew Nut Shell Liquid (CNSL) into Cardanol (distilled CNSL) and Residol.
There is rising global demand for sustainable and green fuels and CNSL-derived products. A
Company is positioned to initiate a project for the production of high-calorific-value Bio Charcoal from the residual Cashew Nut Shell Mass post-CNSL extraction. This Bio Charcoal holds potential for further processing into Activated Carbon.
Net proceeds use:
Particulars
Amount
Setting up of new manufacturing unit and Installation of Plant & Machinery thereon
2,553.33
Funding of capital expenditure requirements of our Company towards Plant & Machinery and installation cost thereon.
591.66
General Corporate Purposes
[●]
Key financial performance
Key Financial Performance
As on May 31, 2024
For the year ended March 31
2024
2023
2022
Revenue from Operations (1)
2,755.63
14,237.26
10,894.74
10,275.75
EBITDA (2)
380.64
1,846.89
520.66
856.02
EBITDA Margin (%) (3)
13.81%
12.97%
4.78%
8.33%
PAT
280.36
1,222.32
191.22
1,063.11
PAT Margin (%) (4)
10.17%
8.59%
1.76%
10.35%
Return on equity (%) (5)
5.92%
30.75%
5.98%
55.55%
Return on capital employed (%) (6)
5.72%
31.94%
11.34%
28.91%
Debt-Equity Ratio (times) (7)
0.85
0.89
0.99
0.70
Net fixed asset turnover ratio (times) (8)
0.78
3.98
3.43
5.14
Current Ratio (times) (9)
1.48
1.51
1.27
1.30
It is operating at capacity utilisation of 95%.
98% of sales is B2B.
Current installed capacity : 40 MT/D is being expanded to to 140 MT/D . Additionally 50 MT/D of CNSL Oil..
Management says that 140 MT/D capacity will be utilised by FY26 and they will require more capacity post that as per their interaction with clients.
They have shown following Peers:
Krishival Foods, Stock P/E 53.6, mcap to sales 5.02
Prospect Commodities; Stock P/E 40.7, mcap to sales 2.90.
Aelea Commodities IPO is coming at a PE ratio of 15.8x (FY24 Earnings and mcap to sales of 1.6x.
Company is moving from a commodity trader to a processor which entails value addition.
I intend to apply in Aelea Commodities IPO subject to availability of funds. Looks well placed in view of planned expansion and valued fairly wrt. peers.
Ekadrisht Capital Private Limited is the Lead Manager with a fair but limited record. Past issues handled by them include TBI Corn Limited,Indian Emulsifier Limited.
GMP as reported on social media has been Rs. 65 (68%)
SME IPOs are quite volatile and new retail investors need to exercise considerable caution in my view.
This post is exploratory and educational purposes only. Please do your own diligence before investing in SME IPOs like this.
Standard disclaimer: I am not a SEBI registered analyst and above analysis is for educational purpose only. Iam a postgraduate in engineering & Management . I have in the past cleared some exams like NISM-Series-V-A: Mutual Fund Distributors Certification, NISM-Series-X-A: Investment Adviser (Level 1) Certification and NISM-Series-X-B: Investment Adviser (Level 2) Examination. This post is my view on the subject matter and is only academic and exploratory in nature. It is not meant to influence investment decisions of investors. I may have bias/vested interest in covered Stock/Mutual Funds/NCD etc. due to my own investment or leaning. Further my understanding of the areas on which I write may be imperfect or incomplete and data could be wrong due to limited time and resources at my disposal. Do check the data from company’s RHP and exchanges before making any decision. Please do your own due diligence as stock market/MF investments have high degree of inherent risk.
