Esteem Bio Organic Food processing Ltd – IPO – Review

IPO – Esteem Bio organic food processing Ltd

Esteem Bio organic food processing Ltd – IPO – Review

Delhi based Esteem Bio Organic Food processing Ltd has come out for public issue for Rs 11.25 crores of 45 lakhs shares @ Rs 25 each. 7.5 lakhs shares would be allotted to market makers of the issue and balance 37.5 shares would be issued to general public.

About Esteem Bio Organic food processing

  • Esteem Bio is engaged in agriculture operations to cultivate wheat, paddy, sugar cane, fruits, vegetables and flowers.  
  • It has operations of wood plantation.
  • It has integrated facility of cultivation, processing and distribution of agri commodities.
  • Brij Kishore Sabharwal and Amar Singh Bisht are the promoters for Esteem Bio. They have 2 decades of experience in various industries.

Current issue to public

  • Issue price: Rs 25 per share
  • Application per share: Rs 25 per share
  • Minimum investment: Rs 150,000.
  • Minimum bid: 6,000 shares and in multiples of 6,000 thereafter
  • IPO opens: 18-Jan-2013
  • IPO closes: 22-Jan-2013
  • Leader managers: Guiness Merchant Bankers Pvt Ltd
  • Registrars: Cameo Corporate services Lt
  • Listing: BSE / SME

Purpose of the IPO:

  • Setting up share net cultivation facility
  • Development of farm land for organic farming
  • Farm tools and general equipment
  • Brand building and Corporate expense purpose
  • Issue expenses. 

Recommendation:  Company has heavy competition in the industry and retail investors need to subscribe for minimum Rs 1.5 lacs investment for this IPO. Investor can wait and watch for better IPO’s in 2013.

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IPO – Esteem Bio organic food processing Ltd

Suresh KP

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