True North Promoted and South Asia Growth Fund backed SeedWorks International files DRHP for IPO

Telangana-based SeedWorks International, a seed research and development company has filed its Draft Red Herring Prospectus (DRHP) with capital markets regulator, Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offering (IPO).

The IPO, with a face value of Rs 2, is entirely an Offer-for-Sale of up to 5,19,70,282 equity shares by the Promoter, Individual and Investor Selling Shareholders. It includes a reservation for a subscription by eligible employees and a discount is being offered to eligible employees bidding in the employee reservation portion.

Offer for Sale consists of shareholders selling shares up to 3,99,17,145 equity shares by True North Fund V LLP, up to 1,09,27,044 equity shares by South Asia Growth Fund II Holdings LLC, up to 10,44,038 equity shares by Dr. Balalji Manmohan Nukal, and up to 82,055 equity shares by South Asia EBT Trust (through Orbis Trusteeship Services Private Limited).

The Offer is being made through the book-building process, wherein not more than 50% of the net offer is allocated to qualified institutional buyers, and not less than 15% and 35% of the net offer is assigned to non-institutional and retail individual bidders respectively.

SeedWorks International is a seed research and development company specializing in hybrid and OPV seeds for key crops like rice, cotton, pearl millet, mustard, vegetables, and fruits. It was the second-fastest-growing Indian seed company by revenue (FY21-FY24) with an 11.98% CAGR. In FY24, it ranked third in cotton seeds, fourth in hybrid rice, and fourth in pearl millet seeds by sales volume in India, according to the F&S Report mentioned in the DRHP.

The Company emphasis on product development to drive innovation in seeds, demonstrated by its industry leading R&D investments, has over the years, led to the commercialization of product offerings with performance traits such as improved yield and disease tolerance, among others. Between FY21 and FY24, its market share in cotton seeds rose from 5.60% to 6.45%, while hybrid rice increased from 7.10% to 7.30%. It started commercializing pearl millet segment in 2019, it quickly gained a 4.90% share by FY24. Beyond India, the company is the fourth-largest hybrid rice seed player in the Philippines (12% market share in CY23) and among the top four in Nepal (26%-29% in CY24). It is also expanding into Kenya, Malawi, Burkina Faso, and Nigeria, focusing on cotton and vegetable crops.

Strategic collaborations with global leaders like BASF and public sector institutions have strengthened its technological capabilities. It holds licenses for ‘Provisia’ and ‘Clearfield’ herbicide-tolerant rice technologies from BASF, supporting the development of HT hybrid rice in India and the Philippines. Backed by a rigorous quality assurance framework, the company conducts grow-out tests at six locations and operates a 7,500 sq. ft. quality control lab with advanced testing infrastructure. Its initiatives span pre-season (PSA), product differentiation (PDA), and off-season (OSA) activities, ensuring a continuous focus on seed quality and farmer engagement.

SeedWorks International’s revenue from operations increased from ₹488.31 crore in Fiscal 2023 to ₹522.69 crore in Fiscal 2024, primarily due to an increase in sale of seeds.

For the six months ended September 30, 2024, revenue from operations stood at ₹407.50 crore, and Profit after tax stood at ₹70.25 crore.

Equirus Capital Private Limited, DAM Capital Advisors Limited, and SBI Capital Markets Limited are the book-running lead managers and KFin Technologies Limited is the registrar of the issue. The equity shares are proposed to be listed on the National Stock Exchange of India Limited and BSE Limited.