Meir Commodities Files Draft Papers With Sebi To Raise Funds via IPO

Meir Commodities India Ltd has filed preliminary papers with markets regulator Sebi seeking its approval to raise funds through an initial public Offering (IPO). The Mumbai-based company's proposed IPO is a mix of fresh issues 52.94 lakh shares and an offer-for-sale (OFS) of 35.29 lakh shares by promoter Rahil Irfan Iqbal Shaikh, according to the draft red herring prospectus (DRHP) filed on Thursday.

Proceeds from the fresh issue to the extent of Rs 48.75 crore will be used for funding working capital requirements and general corporate purposes. Incorporated in 2018, Mier Commodities India is engaged in B2B trading of agricultural commodities, primarily sugar, khandsari, and sugar allied products. Operating as an intermediary, the company connects sugar mills and distributors, ensuring seamless supply chain management. Its diverse product portfolio includes sugar, rice, pulses, spices, and other agricultural commodities, with a strong presence in both domestic and international markets.

While most sales are conducted through third-party distributors in India, Mier also exports to over 15 countries, including the UAE, Turkey, Singapore, the UK, and Europe. Additionally, the company imports pulses and spices from nations like Tanzania, Russia, South Africa, UAE, Canada, and Singapore to meet customer demand. As part of its growth strategy, Mier Commodities India has expanded its business through acquisitions. The company acquired 99.90 per cent of the shares in Shri Agri Trade Ltd in September 2022, making it a wholly-owned subsidiary based in the UAE.

Besides, Mier holds a 90 per cent stake in Shree Comtrade and 90.10 per cent in Shree Salasar Agriculture India Ltd. The company also has a 25 per cent stake in Shree Agri Logistics, securing a steady procurement network and supply chain infrastructure. On the financial front, Meir Commodities' consolidated revenue from operations and profit after tax (PAT) stood at Rs 910.65 crore and Rs 7.87 crore in FY24, respectively.

For the six months ended September 30, 2024, revenue from operations was at Rs 541.64 crore, and PAT at Rs 2.27 crore. Smart Horizon Capital Advisors is the sole book-running lead manager of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Ltd and BSE Ltd.