TBI Corn Limited is a manufacturer and exporter of Corn Meal Grits. TBI Corn IPO envisages to raise Rs 44.94 crores. The issue is entirely a fresh issue of 47.81 lakh shares.
IPO opens
May 31, 2024
IPO Closes
Jun 04 2024
IPO Size (Rs.)
₹44.94 Cr
IPO Size (shares)
4,780,800 shares
Breakup
Fresh issue only
Face Value:
₹ 10
IPO Price in Rs :
₹90 to ₹94 per share
Minimum Lot
1200 Shares
Listing At
NSE SME
QIB
~50 %
NII Quota
~15%
Retail Quota
~35%
Lead Manager
Swastika Investmart Ltd Ekadrisht Capital Private Limited
Registrar
Kfin Technologies Limited
Market maker
Ss Corporate Securities.
About TBI Corn Limited:
Our Company was earlier known as “The Best India”. The Best India was incorporated in the year 2000, and over the years, it has established its goodwill in the Corn industry.
Afterwards the Partnership firm converted into Limited company and the name of the firm was also change to TBI Corn Limited.
Company, is an ISO 9001:2015 and ISO 22000:2018 certified company, and a prominent player in the corn milling industry.
Located in the Sangli district of Maharashtra, India, they specialize in the production of good- quality Corn / Maize Grits, flour and other related products.
The founding partners, Mr. Yogesh Laxman Rajhans with 2 other partners started the company.
Financials: TBI Corn IPO
Particulars/ Rs Lacs
9m Dec 2023
22-6-22 to 31-3-23
1-4-22 to 21-6-22
2021-22
2020-21
Revenue from operations
10,104.61
11,547.52
2,382.96
10,028.55
6,696.33
Profit After Tax
766.45
637.16
48.93
45.16
23.93
Share Capital
1,337.76
0.56
999.76
683.24
512.42
Net worth
4,067.70
1,678.05
999.76
683.24
512.42
Earnings Per Share – Diluted
18.63
11,365.72
872.81
805.53
426.82
NAV per Equity Shares
30.41
29,933.17
17,833.93
10
10
Total Borrowings
5,137.13
4,038.83
2,313.99
2,549.48
2,300.94
Post issue Share Capital
1816
FV
10.0
IPO price
94.0
EPS Fy23
3.8
PE Fy23
24.9
EPS Fy24 (annualized)
5.6
PE Fy24 (annualized)
16.7
Market cap in Lacs
17,070
Market cap / Sales
1.23
Anchors: TBI Corn Limited
TBI Corn Limited: Salient Points
TBI stands for “The Best of India”.
The Net Proceeds are proposed to be utilized in the manner set forth below:
S. No.
Particulars
Amount(₹ in) Lakhs
1.
To Meet Incremental Working Capital requirement.
1,700.00
2.
Expansion of Existing Unit
1,680.00
PRODUCT WISE REVENUE BREAKUP
S. No.
Particulars
For the period ended December 31st, 2023
31st March, 2023*
31st March, 2022
31st March, 2021
22.06.2022 to31.03.2023
01.04.2022 to21.06.2022
%
Amount
%
Amount
%
Amount
%
Amount
%
Amount
1.
Corn Grits
29.68
2,999.12
32.13
3,710.01
17.96
428.03
27.63
2,770.92
29.81
1,996.11
2.
Corn Bran
23.08
2,332.56
25.62
2,959.02
19.44
463.13
28.23
2,830.95
30.48
2,041.01
3.
Broken Maize
14.94
1,509.23
13.89
1,604.06
18.47
440.05
16.13
1,618.09
14.49
970.15
4
Processed Indian Yellow Maize
13.74
1,388.22
12.47
1,440.01
24.01
572.04
13.88
1,391.55
12.84
860.01
5.
Corn Flour
4.96
501.26
3.95
456.03
6.57
156.59
3.86
386.85
3.14
210.05
6.
Corn Flakes
7.05
712.44
6.96
804.18
4.15
98.89
5.30
531.32
5.38
360.17
7.
Corn Germ
3.63
366.66
2.37
273.15
2.17
51.74
2.10
210.5
1.34
90.01
8.
Others
2.92
295.12
2.61
301.06
7.24
172.49
2.88
288.37
2.52
168.82
Total
100
10,104.61
100
11,547.52
100
2,382.96
100
10,028.55
100
6,696.33
Mainly products for Food industry and byproducts for animal feed.
GEOGRAPHICAL REVENUE BREAKUP
Particulars
For the period ended December 31st, 2023
31st March, 2023*
31st March, 2022
31st March, 2021
22.06.2022 to31.03.2023
01.04.2022 to21.06.2022
Exports Revenue
1,471.04
3,082.23
683.03
2,026.13
916.71
Indigence Revenue
8,633.57
8,465.29
1,699.93
8,002.42
5,779.62
Total Revenue
10,104.61
11,547.52
2,382.96
10,028.55
6,696.33
Peers: None
Some renowned investors have invested in the company at Rs. 75 some months back.
Their products are mainly supplied to extruded snack industry. In India the clients include ITC, Balaji Foods, Haldiram etc.
TBI has good expertise in procurement of raw material “maize’ at the right price.
Company is going for expansion at Sangli, Maharashtra and later also move to new areas like M.P. and Mumbai.
It has successfully expanded into international markets, serving countries in the Gulf, Sri Lanka, Malaysia, Brunei, Vietnam, South Korea, and soon, Europe and the US. Major exports are to Gulf nations.
In India Maharashtra accounts for large portion of sales.
65% of clients have been there for more than 5 years.
Company aims for 1000 crore topline in 5-6 years.
TBI Corn IPO is coming at a PE ratio of 25x (FY23 Earnings) and 16x (fy24 annualized earnings). Planned expansion, good exports and sticky customers in India, steady financial record bodes well for the company.
I intend to apply in TBI Corn IPO subject to availability of funds.
GMP as reported on social media has been Rs. 84 (89.4%).
Swastika Investmart Ltd as Lead Manager’s to SME IPO has a average to good performace wrt Listing premium. IPOs managed by them include Sai Swami Metals & Alloys Limited, Shree Marutinandan Tubes Limited, Saroja Pharma Industries India Limited, Service Care Limited, Infinium Pharmachem Limited, Cyber Media Research & Services Ltd, Sonu Infratech Limited, Evoq Remedies Limited, Richa Info Systems, Synergy Green Industries Limited, Aartech Solonics Limited, Megastar Foods Limited, ndo US Bio-Tech Limited, Ridings Consulting Engineers India Ltd, Solex Energy Limited, Innovana Thinklabs Limited etc.
Ekadrisht Capital Private Limited, the 2nd lead manager has a fair but limited record. Past issues handled by them include Indian Emulsifier Limited.
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.
