Meir Commodities India Files Draft IPO Papers with SEBI to Raise Capital
Mumbai-based agricultural commodities trader Meir Commodities India Ltd has taken a significant step toward going public by filing preliminary papers with the Securities and Exchange Board of India (SEBI). The company is seeking regulatory approval for its initial public offering (IPO), positioning itself to expand its operations in the competitive commodities trading sector.
IPO Structure and Fund Utilization
According to the draft red herring prospectus (DRHP) filed on February 27, 2025, Meir Commodities' proposed IPO features a balanced structure combining both fresh equity issuance and an offer-for-sale component:
- Fresh issue of 52.94 lakh equity shares
- Offer-for-sale (OFS) of 35.29 lakh equity shares by promoter Rahil Irfan Iqbal Shaikh
The company plans to utilize proceeds from the fresh issue strategically, with Rs 48.75 crore earmarked primarily for:
- Funding working capital requirements
- General corporate purposes
This capital infusion is expected to strengthen Meir's operational capabilities and support its expansion initiatives in both domestic and international markets.
Business Profile and Market Presence
Established in 2018, Meir Commodities India has quickly positioned itself as a significant player in the B2B trading of agricultural commodities. The company specializes primarily in:
- Sugar and khandsari
- Sugar-allied products
- Rice, pulses, and spices
- Other agricultural commodities
Operating as a strategic intermediary, Meir Commodities connects sugar mills with distributors, facilitating efficient supply chain management across the agricultural commodities sector. While its core business revolves around domestic distribution through third-party networks, the company has established a strong international footprint as well.
Global Reach
Meir has developed an impressive global presence, with export operations spanning more than 15 countries, including:
- United Arab Emirates
- Turkey
- Singapore
- United Kingdom
- Various European markets
Complementing its export activities, the company also imports pulses and spices from diverse global sources including Tanzania, Russia, South Africa, UAE, Canada, and Singapore to satisfy customer requirements effectively.
Strategic Acquisitions and Subsidiaries
A key component of Meir Commodities' growth strategy has been its strategic acquisitions to strengthen market position and expand operational capabilities:
- 99.90% stake in Shri Agri Trade Ltd (UAE-based wholly-owned subsidiary, acquired September 2022)
- 90% stake in Shree Comtrade
- 90.10% stake in Shree Salasar Agriculture India Ltd
- 25% stake in Shree Agri Logistics
These strategic investments have enabled Meir to secure robust procurement networks and strengthen its supply chain infrastructure across multiple markets.
Financial Performance
The company has demonstrated solid financial performance, as evidenced by its recent financial results:
Fiscal Year 2024 (FY24)
- Consolidated revenue from operations: Rs 910.65 crore
- Profit After Tax (PAT): Rs 7.87 crore
Six months ended September 30, 2024
- Revenue from operations: Rs 541.64 crore
- Profit After Tax (PAT): Rs 2.27 crore
IPO Details
Smart Horizon Capital Advisors has been appointed as the sole book-running lead manager for the offering. Upon successful completion of the IPO process, Meir Commodities' equity shares are proposed to be listed on both the National Stock Exchange of India Ltd (NSE) and BSE Ltd.
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