Aelea Commodities made a stellar market debut today as its shares were listed at ₹165 each on BSE SME, indicating a premium of 74% over the issue price of ₹95. The SME IPO, valued at ₹51 crore, was open for subscription from July 12 to July 16, 2024, with a price range of ₹91–95.
It consisted solely of a fresh issue of 53.69 lakh newly issued shares, without any offer-for-sale component. The IPO received a healthy response, with an overall subscription of 196 times. Non-institutional investors showed significant interest, subscribing 390 times, while retail investors also displayed strong enthusiasm with a subscription of 164.95 times.
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The business intends to use the net proceeds of the issue to finance the following goals: setting up a new manufacturing unit and installing plant and machinery thereon; purchasing plant and machinery at an existing manufacturing unit; and general corporate purposes.
Aelea Commodities specialises in the processing and trading of cashews and is also actively involved in the trading of a diverse array of commodities, including sugar, pulses, soybeans, rice, and wheat flour.
Its operational strategy is based on two distinct models: business-to-business (B2B) and business-to-consumer (B2C). In the cashew segment, it has established a strong presence in both B2B and B2C markets, enabling it to meet the needs of wholesale clients as well as individual consumers.
Conversely, its trading activities for products such as sugar, pulses, soybeans, rice, and wheat flour are conducted exclusively through the B2B channel.
It supplies products both domestically and internationally. For the nine-month period ending December 31, 2023, and for the fiscal years ending March 31, 2023, March 31, 2022, and March 31, 2021, its revenue from operations was ₹8,402.79 lakh, ₹7,968.23 lakh, ₹6,596.23 lakh, and ₹39,084.83 lakh, respectively, based on standalone financial statements, as per the DRHP report.
Domestically, its major customers are located in Rajasthan, Karnataka, Gujarat, and Mumbai. Internationally, it has significant customer bases in Dubai and Sri Lanka. The company, in its DRHP report, said it is committed to enhancing the value derived from cashew nutshell by focusing on its long-term strategic goals.
New revenue stream
The company is looking to start the processing of cashew nut shells into cashew nutshell liquid (CNSL), which represents a significant step towards adding value to its by-products.
The proposed plan of venturing into further processing the cashew nut shell into cashew nutshell liquid (CNSL) presents a lucrative opportunity to extract additional value from its raw materials.
CNSL holds immense potential across various industries, including automotive, pharmaceuticals, and chemicals, due to its versatile applications such as in brake linings, varnishes, and insecticides.
This diversification not only adds a new revenue stream but also reinforces the company’s commitment to sustainability by minimising waste and maximising resource utilisation. With this expansion and diversification strategy, the company said it is poised to solidify its position as a leader in the cashew processing industry while unlocking new avenues for growth and innovation.
It is also expanding its existing cashew processing unit and establishing a new facility to optimise efficiency and address increasing market demands. As of December 31, 2023, its current manufacturing unit is operating at 95% of its installed capacity, processing 38 MT per day out of a total 40 MT per day capacity.
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