July 22, 2024
New Delhi, India
Aelea Commodities IPO
Aelea Commodities made an impressive market debut today, listing its shares at ₹165 each on the BSE SME platform. This marks a 74% premium over its issue price of ₹95, reflecting strong investor confidence and interest.
IPO Details:
- Issue Price: ₹91–₹95 per equity share
- Total Issue Size: ₹51 crore
- Subscription Period: July 12 to July 16, 2024
- Listing: BSE SME
- Subscription Rate: 196 times overall
- Non-Institutional Investors: 390 times
- Retail Investors: 164.95 times
The IPO consisted solely of a fresh issue of 53.69 lakh shares, with no offer-for-sale component.
Use of Proceeds: The funds raised from the IPO will be utilized for:
- Setting up a new manufacturing unit and installing plant and machinery.
- Purchasing plant and machinery for an existing manufacturing unit.
- General corporate purposes.
Company Overview: Aelea Commodities specializes in processing and trading cashews and also deals in a diverse range of commodities such as sugar, pulses, soybeans, rice, and wheat flour. The company operates under two distinct models:
- Business-to-Business (B2B): Trading activities for sugar, pulses, soybeans, rice, and wheat flour.
- Business-to-Consumer (B2C): Strong presence in the cashew segment, catering to wholesale clients and individual consumers.
Financial Performance: According to the standalone financial statements in the DRHP report, Aelea Commodities reported the following revenue from operations:
- For the nine-month period ending December 31, 2023: ₹8,402.79 lakh
- Fiscal Year ending March 31, 2023: ₹7,968.23 lakh
- Fiscal Year ending March 31, 2022: ₹6,596.23 lakh
- Fiscal Year ending March 31, 2021: ₹39,084.83 lakh
Expansion and Diversification: Aelea Commodities is expanding its cashew processing unit and establishing a new facility to meet increasing market demands. As of December 31, 2023, the current unit operates at 95% capacity, processing 38 MT per day out of a total 40 MT per day capacity.
The company is also venturing into processing cashew nut shells into cashew nutshell liquid (CNSL), a valuable by-product with applications in various industries, including automotive, pharmaceuticals, and chemicals. This move aligns with the company’s commitment to sustainability by minimizing waste and maximizing resource utilization.
Aelea Commodities’ successful listing and strong market debut highlight its robust business model and future growth potential. With plans to diversify and expand, the company is well-positioned to capitalize on new opportunities and solidify its leadership in the cashew processing industry.
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