Meir Commodities India Files for IPO; Aims to Boost Working Capital and Expansion

Mumbai-based Meir Commodities India Ltd has filed a Draft Red Herring Prospectus (DRHP) with India's market regulator, Securities and Exchange Board of India (SEBI), to raise funds via an Initial Public Offering (IPO).

IPO Structure and Objectives​

The proposed IPO by Meir Commodities India comprises a fresh issue of 52.94 lakh equity shares, alongside an Offer-for-Sale (OFS) of 35.29 lakh shares by promoter Rahil Irfan Iqbal Shaikh.

According to the DRHP, the company intends to utilize proceeds amounting to ₹48.75 crore from the fresh issue towards funding working capital needs and general corporate purposes.

Business Operations and Market Presence​

Established in 2018, Meir Commodities India Ltd specializes in B2B trading of agricultural commodities, prominently focusing on sugar, khandsari, and allied products. The company operates as a strategic intermediary connecting sugar mills with distributors, thus maintaining efficiency and seamless supply chain management.

Meir's diversified product range encompasses:

• Sugar and sugar products
• Rice
• Pulses
• Spices
• Various agricultural commodities

While most domestic sales are managed through third-party distributors, Meir Commodities has successfully ventured into international trade, exporting products to over 15 countries, including:

• UAE
• Turkey
• Singapore
• UK
• Various European markets

The company also actively imports pulses and spices from global markets such as:

• Tanzania
• Russia
• South Africa
• UAE
• Canada
• Singapore

Strategic Acquisitions and Subsidiaries​

Expanding its footprint through strategic acquisitions has been a key growth strategy for Meir Commodities India. In September 2022, the company acquired 99.90% stake in UAE-based Shri Agri Trade Ltd, making it a wholly-owned subsidiary.

Further enhancing its market reach, Meir Commodities holds:

• 90% stake in Shree Comtrade
• 90.10% stake in Shree Salasar Agriculture India Ltd
• 25% stake in Shree Agri Logistics

These strategic investments ensure a robust supply chain infrastructure and steady procurement network.

Financial Performance​

Meir Commodities India's financial performance has been notable, reporting consolidated revenue from operations of ₹910.65 crore and a Profit After Tax (PAT) of ₹7.87 crore for FY24.

For the first six months of the ongoing fiscal year (ending September 30, 2024), the company generated revenue from operations amounting to ₹541.64 crore, with PAT standing at ₹2.27 crore.

IPO Management and Listing Plans​

Smart Horizon Capital Advisors has been appointed as the sole Book-Running Lead Manager (BRLM) for the proposed IPO. Upon successful completion of the IPO process, Meir Commodities India's shares will be listed on the National Stock Exchange (NSE) and BSE Ltd.