Upcoming IPO: Mumbai-based Meir Commodities files DRHP with SEBI to raise funds via IPO; Details here

Upcoming IPO: Meir Commodities India Ltd filed its preliminary draft papers with the capital markets regulator Securities and Exchange Board of India (SEBI), to raise funds via an initial public offering (IPO). According to the draft red herring prospectus (DRHP), the upcoming IPO, with a face value of ₹10, is a mix of fresh issues of shares up to 52.94 lakh and an offer-for-sale (OFS) up to 35.29 lakh equity shares by Rahil Irfan Iqbal Shaikh.

According to the Mumbai-based company, the proceeds from the fresh issue, up to Rs. 48.75 crore, will be used to fund working capital requirements and general corporate purposes. The equity shares are proposed to be listed on the stock exchanges National Stock Exchange of India Ltd and BSE Limited.

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Meir Commodities India IPO details

The offer is being made through the book-building process, wherein not more than 50 per cent of the net offer is allocated to qualified institutional buyers, and not less than 15 per cent and 35 per cent of the net offer are assigned to non-institutional and retail individual bidders, respectively. Smart Horizon Capital Advisors Private Ltd is the sole book-running lead manager, and Kfin Technologies Ltd is the registrar of the public issue. 

Meir Commodities is engaged in the domestic and export trading of B2B agriculture-based commodities, primarily focusing on sugar, khandsari, and sugar-allied products. Incorporated in 2018, it operates as an intermediary to connect sugar mills and distributors, ensuring supply chain management. 

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Meir Commodities India Company Details

The company's product portfolio includes sugar, rice, pulses, spices, and other agricultural commodities. It has a strong presence in domestic and international markets. While most sales are conducted through third-party distributors in India, Meir also exports to 15 countries, including Turkey, Singapore, UAE, and UK.

To meet customer demand, the company imports pulses and spices from nations such as Tanzania, Russia, South Africa, UAE, Canada, and Singapore. In FY24, Meir ranked as India's fourth-largest exporter of khandsari, holding a 4.2 per cent share by value and 11.7 per cent by volume. Since its inception, Meir has supplied 13,31,901 metric tons of agricultural products, including 10,93,839 metric tons domestically and 2,38,062 metric tons in the global market. 

The company's strategic supplier network ensures a steady flow of sugar, khandsari, and allied products, with over 20 suppliers maintaining long-term associations. From handling its first order of 22 MT of sugar, Meir Commodities Ltd has scaled up to processing single orders of 68,500 MT. 

To mitigate challenges posed by government restrictions on sugar exports, Meir has diversified its operations by expanding domestic sales, offering traditional products such as khandsari in global markets, and sourcing sugar from Brazil and independent Indian refineries. The company also trades rice and pulses, further strengthening its market presence.

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Meir has expanded its business through strategic acquisitions, strengthening its position in the agricultural commodities sector. In September 2022, the company acquired 99.90 per cent shares in Shri Agri Trade Limited (SATCL), making it a Wholly Owned Subsidiary based in the UAE. This acquisition allowed Meir to leverage favourable trade policies and continue supplying sugar to international markets despite India's export restrictions. 

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Meir operates through its subsidiary (SATCL), two subsidiaries (SCPL & SSAIL), and an associate company (SALPL). SATCL, based in the UAE, leverages favourable trade policies to bypass India's sugar export restrictions, ensuring uninterrupted supply. SALPL focuses on the procurement network. 

Led by Rahil Irfan Iqbal Shaikh, an industry veteran with 18 years of experience, Meir has positioned itself as a leading player in the agricultural commodities trade. Meir Commodities' consolidated revenue from operations and profit after tax stood at ₹910.65 crore and ₹7.87 crore in fiscal 2024, respectively. For the six months ended September 30, 2024, revenue from operations stood at Rs.541.64 crore, and profit after tax stood at ₹2.27 crore.