An Agro to Software company, Mitshi India Ltd, (BSE: 523782), is looking to raise fresh capital through preferential allotment of shares to fund expansion of its agro and software businesses. The Board of Directors have consented to offer and issue up to 12 Lakhs (Twelve Lakhs) Equity Shares of Rs. 10/- each at the premium; as per the SEBI Regulation / Guidelines.
Mitshi India Limited is planning to use 60-70 per cent of the capital raised through preferential allotment to procure agri goods by establishing tie-ups with farmers, especially onions and potatoes. It is eyeing to tap this Rs 2,500 crore segment. Initially, it will focus on the Mumbai market. For this, the Company has an option to obtain leasing rights from the farmers, which will bring down the procurement cost significantly and in turn, will help the farmers improve their margins, as middlemen will be eliminated completely. The remaining capital will go into software development, a subscription based service that would provide SMEs and local vendors and hawkers an online presence.
Mitshi India Limited has plans to set up a centralised procurement hub in Mumbai for buying and selling of potatoes, onions and garlic, which will be expanded to other states across India in a phased manner. It will target hawkers and shopkeepers who sell potatoes and onions.
Commenting on the development, Mr Kumar V. Shah, Chairman and Managing Director said, "We have a robust business plan, especially the agriculture supply business that would provide us direct access to farmers and would help us in directly procuring of goods that would give us an edge in the current marketplace. We are also aiming to bring the unorganised market in to organise one by bringing them online. There are over 40,000 hawkers and about 5000 shopkeepers in Mumbai. Even if we are able to reach out to 3-4 per cent of them, it should give us enough opportunity to build and monetise on."
Mr. Shah commented on their Subscription Software Platform for SMEs that there are some foreign players in the market, however, MITSHI being local gives them an edge as they understand the Indian consumer needs and mentality better.
A 44 year old Company, Mitshi India is into the business of Agro based B2B and B2C models, and software development and services. The Company has launched an e-commerce platform named Taaza Kitchen, which supplies cleaned, fresh and hygienic vegetables, fruits and other kitchen related items in Mumbai. Till date, it has completed over 30,000 orders and delivered about six Lakhs branded packets.
Shares of Mitshi India Ltd was last trading in BSE at Rs.61.65 as compared to the previous close of Rs. 61.45. The total number of shares traded during the day was 12752 in over 63 trades.
The stock hit an intraday high of Rs. 61.95 and intraday low of 59.75. The net turnover during the day was Rs. 776793.