Aelea Commodities files draft papers to raise up to Rs 45 crore through IPO

IPO

Aelea Commodities Ltd has filed the draft red herring prospectus (DRHP) with BSE to raise around Rs 45 crore through a public offer by issuing up to 55,00, 000 fresh equity shares.

The shares will be issued in a price band of around Rs 80-85 a share, sources told Moneycontrol.

Ekadrisht Capital is the book manager for the issue.

About Aelea Commodities

Incorporated on November 5, 2018, Aelea commodities is involved processing and trading of cashews. It also trades in commodities such as sugar, pulses, soybean, rice and  wheat flour.

In the cashew business the company has both business to business (B2B) and business to customer (B2C) presence. For other commodities, it has a B2B presence.

Aelea Commodities imports Raw Cashew Nuts (RCN) from African nations, including Benin, Tanzania, Burkina Faso, Senegal, and Cote d’Ivoire, while specialising in trading RCN and cashew kernels for consumption. The company trades in by-products from sugar mills such as Bagasse.

Most of the company’s customers are in Rajasthan, Karnataka, Gujarat and Mumbai and globally, in Dubai and Sri Lanka, the draft papers said. Its clients includes Tata International, Sugana Foods, Olam International and Farmley.

Objectives of the issue

Aelea Commodities plans to use Rs 25.53 crore to set up a new plant and Rs 5.91 crore for buying plant machinery for the existing unit.

Financials

In the December quarter, the company's profit after tax was Rs 8 crore and profit margin at around 7 percent. Its revenue was at Rs 96.91 crore with an EBITDA of Rs 14.65 crore. The return on equity (RoE) was at 23.21 percent.  The debt to equity was 1.01 times.

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