SeedWorks International Files DRHP with SEBI for IPO

SeedWorks International, a seed research and development company, has filed preliminary papers (DRHP) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The IPO consists entirely of an offer-for-sale (OFS) of up to 5.19 crore equity shares. The equity shares are proposed to be listed on the National Stock Exchange of India and Bombay Stock Exchange BSE Ltd.

Offer for Sale (OFS) Details

The OFS includes shares being sold by key stakeholders.

• True North Fund V LLP is selling up to 3.99 crore shares.
• South Asia Growth Fund II Holdings LLC is selling up to 1.09 crore shares.
• Dr. Balaji Manmohan Nukal is selling up to 10.44 lakh shares.
• South Asia EBT Trust is selling up to 82,055 shares.

The company will not receive any proceeds from the offer, as they will be distributed among the selling shareholders. A reservation for eligible employees with a discount offered in the employee reservation portion will be included in the IPO.

Company Overview

SeedWorks International specializes in the research, production, and marketing of hybrid seeds. The company offers seeds for a wide range of crops, including rice, cotton, pearl millet, mustard, vegetables, and fruits. It also offers open-pollinated variety seeds for crops such as rice, wheat, and mustard.

Market Position and Growth

As per the F&S Report, SeedWorks was the second-fastest-growing Indian seed company in terms of revenue growth between FY 2021 and FY 2024, holding a strong market position in India. It ranks third in cotton seed sales and fourth in both hybrid rice and pearl millet seed sales. Internationally, the company is fourth in hybrid rice seed sales in the Philippines and among the top four in Nepal. SeedWorks is also expanding its operations in Kenya, Malawi, Burkina Faso, and Nigeria, with a focus on cotton and vegetable crops.

Innovation and Quality Assurance

SeedWorks International prioritizes product development and research, ensuring high-yield, disease-resistant seeds. It holds licenses for BASF’s ‘Provisia’ and ‘Clearfield’ herbicide-tolerant rice technologies. The company operates six grow-out test locations for seed quality assurance. It has a 7,500 sq. ft. advanced quality control lab with cutting-edge testing infrastructure. Pre-season (PSA), product differentiation (PDA), and off-season (OSA) activities ensure consistent seed quality and farmer engagement.

Financial Performance

SeedWorks International demonstrated strong financial growth, with revenue increasing by 7.05%, from ₹488.31 crore in FY23 to ₹522.69 crore in FY24. For the six months ending September 30, 2024, the company reported a revenue of ₹407.50 crore and a profit after tax (PAT) of ₹70.25 crore. This marks a significant increase in PAT, rising by over 6,721% from ₹1.03 crore in 2023.

IPO Management and Allocation

Equirus Capital Pvt. Ltd., DAM Capital Advisors Ltd., and SBI Capital Markets Ltd. are the book-running lead managers for the issue. KFin Technologies Ltd. will be the registrar of the issue. The IPO is being made through a book-building process. Not more than 50% of the net offer is allocated to Qualified Institutional Buyers (QIBs). At least 15% is allocated to Non-Institutional Investors (NIIs). At least 35% is allocated to Retail Individual Investors (RIIs).

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