Prospect Commodities IPO is a SME IPO of 1,226,000 equity shares of the face value of ₹10 aggregating up to ₹7.48 Crores. The issue is priced at ₹61 per share. The minimum order quantity is 2000 Shares. The IPO opens on Mar 8, 2023, and closes on Mar 10, 2023.
About Company
Incorporated in 2022, Prospect Commodities Limited is majorly into the international trade of “Agro Products.” The entity was recently incorporated as a company; earlier, the operations were managed and controlled by the partnership firm named “M/s Fortune Exports.”
The Promoter and Managing Director of the company, Mr. Vimal Mishra, has experience of over a decade in different fields which harnesses the company’s growth in the right direction.
The company is involved in the trading of agro products. Although it is a recently incorporated business, the promoter has several years of experience in the logistics industry and running a partnership business that primarily deals with importing and exporting various agricultural commodities. In 2018, they started importing cashew husks from Vietnam and sold them to different tanning companies.
In 2021, they started a cashew processing firm with a capacity of processing 150 tones annually. It recorded a turnover of ₹987.98 lakhs, with ₹784.87 lakhs from agro products. From 2020 to 2021, the company grew at a 107% rate.
Cashew Nuts are premium dry fruit and require multiple processing stages to be sold as a finished product. Before reaching the doorstep of the end customer, the nuts undergo a series of processes. Prospect Commodities Limited undertakes the following processes:
- Cleaning
- Boiling and Cooling
- De Shelling
- Drying
- Moisture and Peeling
- Sorting
- Drying
- Grading
- Manual Sorting and Grading
- Drying before Dispatch
- Packing and Dispatch
| Minimum Investment ₹122,000 / 1 Lots ( 2000 Shares ) | Maximum Investment ₹122,000 / 1 Lots ( 2000 Shares ) |
| Price Range ₹61 | Issue Size ₹7.48 Cr |
| Investor category and sub category Qualified Institutional Buyers | Non-Institutional Investors | Retail Individual Investors | Retail Discount To be announced |
IPO Dates
Important dates with respect to IPO allotment and listing
| IPO Open Date Mar 8, 2023 | IPO Close Date Mar 10, 2023 |
| IPO Allotment Date Mar 15, 2023 | Initiation Of Refunds Mar 16, 2023 |
| Credit Of Shares To Demat Account Mar 17, 2023 | IPO Listing Date Mar 20, 2023 |
IPO Subscription Status Live
| Investor Category | Subscription (Times) |
|---|---|
| Retail Investors | 0.71 |
| Non-Institutional Buyers | 4.23 |
| Total | 2.47 |
IPO Subscription Details
| Date | NII | Retail | Total |
|---|---|---|---|
| Day 1 Mar 8, 2023 | 3.92 | 0.22 | 2.07 |
| Day 2 Mar 9, 2023 | 4.17 | 0.62 | 2.40 |
| Day 3 Mar 10, 2023 | 4.23 | 0.71 | 2.47 |
Prospect Commodities Ltd. IPO Objective
The company proposes to utilize the funds for the following objectives.
- Repayment of unsecured loans
- To fund long-term capital requirements
- General corporate expenses
- And meeting public issue expenses
Why should you invest in Prospect Commodities Ltd. IPO?
Here are your top reasons to invest in Prospect Commodities Limited IPO.
- The company has increased its capacity from 150 tones per year to 600 tones per annum.
- They have strong business relationships with internal and external partners and vast experience trading agricultural products.
- They cater to the PAN India market, although they only successfully sell their entire cashew proceeds in Gujarat.
- They have a solid product quality monitoring and after-sale services policy.
Prospect Commodities Ltd. Noteworthy highlights
- Prospect Commodities Limited has taken over the entire business of the erstwhile partnership firm, including all liabilities and assets.
- The company operates in the B2B model, selling to wholesalers in Gujarat.
- They have increased their installed capacity from 150 tones annually to 600 tones to meet growing demands.
Know before investing
Strengths
- Quality assurance and constantly meeting the standard quality demands of clients.
- They have a robust sales channel for the smooth operation of their B2B business.
- They are focusing on geographical expansion and entering the B2C category.
Risks
- The company is struggling with low production capacity and working capital constraints.
- Prices are affected by the changes in customs duty in importing countries.
- The company faces competition from other manufacturers offering lower prices.
Click Here To Apply Prospect Commodities IPO
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