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 ₹ 11.25 crores of 45 lakhs shares @ ₹ 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: ₹ 25 per share
  • Application per share: ₹ 25 per share
  • Minimum investment: ₹ 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 ₹ 1.5 lacs investment for this IPO. Investor can wait and watch for better IPO’s in 2013.

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Suresh
IPO – Esteem Bio organic food processing Ltd

Suresh KP

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