NFP Sampoorna Foods Limited IPO

NFP Sampoorna Foods Limited was incorporated on December 13, 2023, after conversion from a partnership firm named M/s Nut and Food Processor, which was established in 2019. The company is engaged primarily in the processing and trading of cashew nuts, converting raw cashew nuts into finished kernels of various grades.

The company procures most of its raw material through imports from African countries, processes them in its facilities, and sells finished products in both B2B (wholesale) and B2C (retail) markets. Recently, the company expanded into the B2C segment through e-commerce platforms such as Amazon and Flipkart, strengthening its brand presence and distribution reach.

NFP Sampoorna Foods emphasizes quality control and food safety. It holds ISO 9001:2015 and ISO 22000:2018 certifications, reflecting its commitment to international standards of quality management and food safety systems. Over the last few years, the company has demonstrated rapid revenue growth driven by increased market penetration, expanded processing capacity, and strategic sourcing of raw cashews directly from African farms.

The global cashew market was valued at approximately USD 7.82 billion in 2024 and is projected to reach USD 9.20 billion by 2029, growing at a CAGR of about 3.31%. Demand is being driven by rising health consciousness, increasing preference for plant-based diets, and growing use of cashews in snacks, confectionery, and dairy alternatives.

Major producing countries include Côte d'Ivoire, India, and Vietnam. Global production reached nearly 3.85 million metric tons in 2022.

Indian Cashew Industry

India is one of the largest processors and exporters of cashew kernels. The Indian cashew market is expected to grow from USD 2.40 billion to USD 2.9 billion over the next five years at a CAGR of around 3.8%. The industry supports nearly 1.5 million workers and contributes significantly to foreign exchange earnings.

Recent trends include:

• Shift toward value-added and flavored cashew products

• Use of cashews in vegan and dairy substitute products

• Expansion of organized retail and e-commerce channels

However, the industry faces challenges such as competition from cheaper snack alternatives, raw material price volatility, and dependence on imports.

Key risk factors highlighted in the DRHP include:

1. Raw Material Dependency: The company depends heavily on imported raw cashew nuts from Africa. Any disruption in supply chains, geopolitical tensions, or import restrictions may affect operations.

2. Price Volatility: Fluctuations in global cashew prices and foreign exchange rates can impact margins.

3. Regulatory Changes: Changes in food safety regulations, import/export duties, and government policies may adversely affect business performance.

4. Geographical Expansion Risks: Expansion into new regions and B2C markets involves marketing and distribution risks.

5. Natural and Man-made Disasters: Such events can disrupt production and logistics.

6. Competitive Industry: The cashew processing industry is fragmented with many regional and national players, leading to pricing pressure.

The promoters of NFP Sampoorna Foods Limited are:

• Mr. Praveen Goel

• Mrs. Anju Goel

• Mr. Yash Vardhan Goel

They acquired the partnership firm as a going concern and expanded the business significantly. The promoter group does not have any listed entities and has not been declared sick or subject to winding-up proceedings. There are no major conflicts of interest or common pursuits between group entities and the company’s business.

The company is managed by experienced professionals:

• Mr. Yash Vardhan Goel – Managing Director

• Mr. Praveen Goel – Director

• Ms. Babli – Company Secretary & Compliance Officer

• Mr. Anil Kumar Gupta – Chief Financial Officer (CFO)

The board has constituted statutory committees such as:

• Audit Committee

• Nomination & Remuneration Committee

• Stakeholders Relationship Committee

These committees strengthen governance and regulatory compliance.

According to the DRHP, there are no major criminal litigations against the company or promoters. The company has not defaulted on statutory dues, bank borrowings, or listing fees. All required government and statutory approvals for business operations have been obtained.

The company has shown strong growth:

• FY 2021-22: Turnover of approx. ₹748.68 lakh

• FY 2022-23: Turnover crossed ₹1,674.68 lakh

• FY 2023-24: Revenue reached approx. ₹2,374.14 lakh

Profitability has improved alongside revenue growth due to scale of operations and better sourcing strategies.

Cash flows indicate improving liquidity:

• Closing cash and cash equivalents increased from ₹10.19 lakh (earlier period) to ₹33.55 lakh in FY 2024.

• Operating cash flows have improved due to higher revenues.

• Financing activities mainly include issue of equity shares and repayment of partner capital during conversion from partnership to company.

The IPO proceeds will be used for:

1. Funding working capital requirements

2. General corporate purposes

3. Issue-related expenses

The funds are intended to support business expansion, increase processing capacity, and strengthen supply chain operations.

The issue is a 100% fresh issue of up to 24,41,115 equity shares with a face value of ₹10 each.
There is no Offer for Sale (OFS).

The issue is being made through the Book Building Process and proposed to be listed on NSE Emerge (SME platform).

Allocation structure includes:

• QIB portion

• Non-institutional investors

• Retail individual investors

• Market maker reservation portion

The issue price will be determined based on:

• Weighted average cost of acquisition

• Company’s earnings and growth prospects

• Industry multiples

• Key performance indicators

Final valuation will depend on the discovered price band and investor demand during book building.

Pre-issue capital structure:

• Equity Share Capital: approx. ₹620 lakh

• Reserves & Surplus: approx. ₹17.10 lakh

• Total Debt: approx. ₹853.31 lakh

Post-issue capital structure will change depending on final issue price and subscription.

Related party transactions are disclosed in the financial statements. These include transactions with promoter group entities, primarily in the nature of loans and operational dealings. All such transactions are conducted at arm’s length and disclosed as per accounting standards.

Material contracts include:

• Agreements with Book Running Lead Manager

• Registrar to the Issue

• Market Maker Agreement

• Auditor appointments

These contracts are available for inspection as per DRHP disclosures.

Period-wise Accounting Ratios

Additional Capital & Leverage Ratios (as on 31 March 2024)

Peer Comparison Ratios (FY 2023–24)

Summary of Key Efficiency & Liquidity Indicators

• Current Ratio: 2.51 (FY24) – indicates adequate short-term liquidity

• Debt-Equity Ratio: 1.34 – reflects moderate leverage

• ROCE: 4.78% – improving compared to earlier loss-making year

• RoNW: 2.97% – positive turnaround from FY22

• EBITDA Margin: 9.56% – shows operational improvement

• PAT Margin: 2.85% – still thin but improving

• NAV per Share: ₹10.28

Management highlights:

• Strong revenue growth driven by expansion into B2B and B2C segments

• Direct sourcing from African farms gives cost advantage

• Focus on quality certifications to enhance brand credibility

• Expansion of processing units to meet rising demand

Future strategy includes:

• Strengthening e-commerce presence

• Introducing value-added cashew products

• Improving operational efficiency

• Expanding domestic distribution network

Management also acknowledges risks related to raw material imports, competition, and regulatory environment but remains optimistic due to strong demand trends in the health food segment.

The company follows SME listing governance requirements:

• Independent directors on the board

• Statutory committees (Audit, NRC, Stakeholders Committee)

• Regular disclosures and compliance with Companies Act and SEBI ICDR Regulations
  This enhances transparency and investor confidence.