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- Aeroplane Rice Co. IPO: Price Band ₹201 212, Listing April 2; Raises ₹440 Cr
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The IPO of Amir Chand Jagdish Kumar Exports, a company selling Basmati rice under the Airplane brand, will be open from March 24 to 27. The company has fixed the price band of ₹201 to ₹212 per share for this issue. The company plans to raise ₹440 crore.
Must invest at least ₹14,840
The company has fixed the lot size of 70 shares for the IPO. That means, according to the upper price band of ₹ 212, investors will have to invest at least ₹ 14,840.
50% has been reserved for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII) and 35% for retail investors.
Will be a completely ‘fresh issue’, no part of OFS
There is no ‘Offer for Sale’ (OFS) in this IPO. That is, the promoters are not selling their stake, but there will be new shares worth the entire ₹440 crore. This amount will be used for working capital needs and general corporate purposes.
Company made profit of ₹48 crore in 9 months
The company’s operational revenue for the 9-month period ending December 31, 2024 stood at ₹1,421.3 crore. During this period the company has earned a net profit of ₹ 48.77 crore. After the pre-IPO round, the valuation of the company is estimated at around ₹1,877 crore. The market cap of the company is estimated to be more than ₹2,195 crore after listing.
There is competition from companies like KRBL and LT Foods
Amir Chand Jagdish Kumar Exports mainly deals in processing and exporting Basmati rice. In the market, it competes with big names like KRBL Limited with ‘India Gate’ brand, LT Foods with ‘Daawat’ and Sarveshwar Foods. Apart from rice, the company is now trying its hand in the FMCG sector and selling essential kitchen items.
There will be entry in the stock market on 2nd April
Talking about the timeline of IPO, the allotment of shares can be finalized on March 30. Investors who do not get shares will get a refund by April 1 and the shares will be credited to the demat account of the allottees on the same day. The company’s shares are expected to be listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) on April 2.
risk factor checklist
A large part of Basmati rice is exported to foreign countries. The government often sets the Minimum Export Price (MEP) to control domestic prices. If MEP is too high, exports may reduce due to rice becoming expensive.
Paddy cultivation requires a large amount of water. If the monsoon is weak or there is unseasonal rain, the yield may be reduced. This increases the prices of raw materials (paddy), which reduces the company’s profits.
The biggest market for Basmati is Gulf countries. War situations, such as the recent Iran-Israel tensions, disrupt supply chains, increasing freight and insurance costs.
Being an export business, payment is in dollars. Major changes in the value of rupee against the dollar have a direct impact on the company’s revenue.
Know about Amir Chand Jagdish Kumar Exports…
This is a 50 years old and well-known company manufacturing and exporting Basmati rice. Its name comes among the top-5 Basmati rice producers and exporters of India.
The company’s network for procurement, storage and processing of paddy extends to Haryana, Punjab, Himachal, UP and MP. The company is serving its big customers in 6 continents of the world.
The CMD of the company is Jagdish Suri. The company is known for its brand ‘Aeroplane Rice’. Apart from this, the company sells different varieties of rice through brands like La-Taste, Alibaba, World Cup, Hani, Palm Tree, Greenfield, Sophia and Al Jazeera.
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