IPO Details

About Company

Mother Agri Food Ltd., incorporated in 2010, is a prominent player in the agri-food sector, focusing on the production and distribution of organic and processed food products. The company operates under the umbrella of the Mother Group, which has diversified interests in agriculture and food processing. Mother Agri Food Ltd. boasts a robust product portfolio that includes organic grains, pulses, and ready-to-eat meals, catering to both domestic and international markets. The company has established substantial manufacturing capacities with state-of-the-art facilities located in key agricultural regions, enabling efficient sourcing and production. Geographically, Mother Agri Food has a strong presence across India, with a growing footprint in Southeast Asia and Europe, supported by a well-structured distribution network comprising wholesalers, retailers, and e-commerce platforms. In terms of financials, for the fiscal year ending March 2023, the company reported a total income of INR 500 crore with a net profit of INR 50 crore, reflecting an EBITDA margin of 15%. The return on capital employed (ROCE) stands at 12%, while the return on equity (ROE) is at 10%. The debt-equity ratio is maintained at a conservative level of 0.5. The objectives of the IPO include funding expansion initiatives, enhancing manufacturing capabilities, and repaying existing debt. Post-issue, the market capitalization is projected to be INR 1,200 crore, with an earnings per share (EPS) of INR 10 and a price-to-earnings (P/E) ratio of 20. Investor sentiment towards the IPO is cautiously optimistic, driven by the growing demand for organic food products and the company’s strategic growth plans.