Sita Shree Food Products Ltd. IPO Note

March 12, 2008

Sita Shree Food Products Ltd. IPO details:

Price Band: Rs. 27 - 30 per share
Issue open between: March 11 - March 14, 2008
Book Running Lead Managers: Keynote Corporate Services Ltd.
To List on: NSE and BSE
Market Cap post-listing: Rs. 66 Cr. or $16.3 million (based on the cap price)

Executive Summary

Sita Shree Food Products Ltd. (SSFPL), is a Indore based wheat and pulses processor for over 3 decades serving primarily western and southern markets.

It markets packaged products under its own brands ???Sita Shree Regular??? and ???Sita Shree Gold???, and also supplies food products to organized retail players like Pantaloon Retail and Reliance Retail. Recently, it has commenced exporting to the Gulf countries.

Ministry of Food Processing Industries (GOI) estimates size of Processed Food Industry at Rs1440bn.

Top line and bottom line girew @ CAGR of 48.8% and 77.5% respectively, during FY04-07.

The expansion plan involves capex of Rs48Cr to be funded through a mix of equity, debt and internal accruals for setting up solvent extraction plant, Lecithin plant and additional flour mill to cater to the increasing demand.

Extraction of soya oil and manufacturing by-products of Soya have higher EBITDA margins.

IPO is priced at 18.8x based on pre-issue weighted EPS and 22.0x based on pre-issue FY07 EPS.

Download full version of Sita Shree Food Products IPO Note (Keynote Capitals) (pdf)

Sita Shree Food Products Ltd. IPO Note

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