Gobind Sugar Unlisted Share Price

About GOBIND SUGAR MILLS LIMITED Unlisted Shares

GOBIND SUGAR MILLS LIMITED is one of the leading sugar manufacturing companies in India. The company is located at Aira – the sugar bowl region of the country, Lakhimpur Kheri District, Uttar Pradesh. Gobind Sugar Mills Limited has access to three sugarcane-producing districts, namely, Lakhimpur-Kheri, Bahraich, and Sitapur, which adds to a total of 40,000 hectares of sugarcane cultivable area. The company has improved its technology which enables the unit to crush 10,000 tonnes of Sugarcane every day.

Gobind Sugar Mills Limited started producing Sulphur Free refined sugar in 2017 and today the company has a capacity of producing 500 TPD (Tons per Day) of Double Refined pharmaceutical and food-grade sugar. Besides selling the finished product, the company also engages in the production and sale of various by-products of sugar.

The company is producing and selling molasses and bagasse. Molasse is the dark, sweet, syrupy by-product made during the extraction of sugar from sugarcane and sugar beets. Gobind Sugar Mills Limited produces around 500 tonnes of molasses per day. Bagasse is the fibrous dry pulpy residue left after the extraction of juice from sugarcane. It can be used as a biofuel and also in the production of construction materials. The company produces 3,000 tonnes of bagasse per day.

Gobind Sugar Mills Limited runs on self-generated electricity produced from the green power plant which uses the organic waste (Bagasse) of sugarcane as fuel.

In FY 2020, the state-of-art Distillery Plant was commissioned and the Company started the commercial production of Ethanol at 60 KLPD capacity with effect from 01st December 2019. However, in July 2020, State Level Environmental Impact Assessment Authority, Uttar Pradesh cleared the company’s application for enhancing the capacity to 100 KLPD. The plant has the capacity to produce Ethanol from C-Molasses, B-Heavy Molasses, and sugarcane juice directly.

The equity shares of Gobind Sugar Mills Limited are listed on the Metropolitan Stock Exchange of India Limited (‘MSEI’).

INCORPORATION DETAILS

PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

BOARD OF DIRECTORS

Mr. Akshay Poddar (Non-Executive Director and Chairman)

Mr. R. S. Raghavan (Managing Director)

Mr. Alok Saxena (Executive Director)

Mr. Vijay Kathuria (Executive Director)

Mr. Marco Wadia (Independent Director)

Mr. L. M. Chandrasekaran(Independent Director)

Mrs. Manju Gupta(Independent Director)

PARTICULARS OF SUBSIDIARY AND ASSOCIATE COMPANIES

GOBIND SUGAR MILLS LIMITED does not have any subsidiary or associate company.

SHAREHOLDING PATTERN (As of 31-03-2021)

INDUSTRY OUTLOOK

In the last two years, India has become the world’s largest producer of sugar, as brazil has diverted more of its production to produce ethanol. Therefore, Indian Sugar producers are getting better prices for their products. The sugar sector follows a sugar season cycle from October to September of next year.

According to the Indian Sugar Mills Association (ISMA), around 502 sugar mills have started their operations from 1st October 2020 to 28th February 2021. They altogether produced 23.37 million tonnes of sugar as of 28th February 2021. From October 2020 to mid-February 2021, sugar production in India increased by 22.9% to  20.9 million tonnes on account of 74% and 26.9% production growth in Maharashtra and Karnataka, respectively, backed by increased sugarcane areas, better yields among others. Sugar output in  India is expected to increase by 11.7% to 32 million tonnes during the Sugar Year 2020-21 (October 2020 -September 2021)  on account of higher production in Maharashtra and Karnataka.

Cabinet Committee on Economic Affairs (CCEA), on 16 December 2020,  approved assistance of about Rs. 3,500 crores towards sugar export for the sugar season 2020-21 to curtail the sugar glut situation in India and to reduce the quantum of sugarcane arrears owed by the sugar industry. For Sugar Year 2021, India is likely to export 5.50 million tonnes of sugar. In fact, within just two months, companies have already exported 4.80 million tonnes of sugar.

The sugar prices in the domestic market are unlikely to witness any major improvement due to huge carry-over stocks of about 10.6 million tonnes and an expected 10.2% growth in production to 32 million tonnes in the current sugar year 2020-21. Thus the prices are expected to remain largely range-bound only backed by an MSP of Rs.31 per kg. Domestic prices are unlikely to increase unless sugar MSP is hiked by the government.

The global sugar market to exhibit stable growth during 2020-2025. Over the next ten years, global sugar production is projected to expand by 14%, from 178 Mt in the base period (September 2016 to October 2019) to 207 Mt in 2028, with 85% of the projected increase originating in developing countries.

FAQ's on Gobind Sugar Mills

Q: What is the face value of Gobind Sugar Mills Ltd shares?
Answer: The face value of Gobind Sugar Mills Ltd is ₹10 per equity share.

Q: What is the minimum lot size for buying Gobind Sugar Mills shares through WWIPL?
Answer: The minimum lot size for Gobind Sugar Mills shares is 100 equity shares.

Q: How can I buy Gobind Sugar Mills unlisted shares through WWIPL?
Answer: Investors can complete KYC, confirm the transaction details with WWIPL, transfer funds, and receive the shares directly in their Demat account.

Q: Why should I buy Gobind Sugar Mills shares through WWIPL?
Answer: WWIPL offers transparent pricing, secure transactions, seamless Demat transfers, and dedicated support throughout the investment process.

Q: Is investing in Gobind Sugar Mills Ltd a good idea?
Answer: Investors often evaluate Gobind Sugar Mills based on its integrated sugar manufacturing operations, ethanol business, cogeneration capabilities, financial performance, and long-term prospects in India's sugar and biofuel sectors.

Q: Why do investors buy Gobind Sugar Mills shares before a potential value-unlocking event?
Answer: Investors seek exposure to the company's integrated sugar and ethanol business, expecting long-term value creation from rising ethanol blending, renewable energy, and improving industry fundamentals.

Q: What business does Gobind Sugar Mills Ltd operate in?
Answer: Gobind Sugar Mills manufactures sugar and also produces ethanol, molasses, bagasse, and renewable power through its cogeneration facilities, making it an integrated sugar company.

Q: What makes Gobind Sugar Mills different from other sugar companies?
Answer: The company has an integrated business model with sugar manufacturing, ethanol production, and cogeneration of power, allowing it to diversify revenue beyond sugar sales.

Q: What are the key growth drivers for Gobind Sugar Mills Ltd?
Answer: Higher ethanol blending targets, strong sugarcane availability, government support for biofuels, growth in renewable energy, and improved sugar realizations are key growth drivers.

Q: What factors affect the valuation of Gobind Sugar Mills shares?
Answer: Sugar prices, ethanol realization, crushing capacity utilization, government policies, profitability, and cash flows are the primary valuation drivers.

Q: Are Gobind Sugar Mills shares available in Demat form?
Answer: Yes. Shares purchased through WWIPL are transferred directly to the investor's Demat account.

Q: Can I sell my Gobind Sugar Mills shares through WWIPL?
Answer: Yes. WWIPL facilitates both buying and selling of unlisted shares, subject to market demand and availability.

Q: What documents are required to buy Gobind Sugar Mills shares through WWIPL?
Answer: Investors generally need PAN, Aadhaar, Client Master Report (CMR), and bank account details to complete the transaction.

Q: What are the risks of investing in Gobind Sugar Mills shares?
Answer: Investors should consider fluctuations in sugar prices, weather-related risks affecting sugarcane production, regulatory changes, commodity price volatility, and liquidity constraints associated with unlisted shares.

Q: How does WWIPL help investors track Gobind Sugar Mills investments?
Answer: WWIPL provides company updates, transaction assistance, market insights, and investment support to help investors stay informed.

Q: How long does it take for Gobind Sugar Mills shares purchased through WWIPL to be credited to a Demat account?
Answer: Shares are generally transferred to the investor's Demat account after successful completion and verification of the transaction.

Q: What should investors evaluate before investing in Gobind Sugar Mills Ltd?
Answer: Investors should assess the company's sugar and ethanol capacities, profitability, debt profile, operational efficiency, government policy exposure, and long-term growth prospects.

Q: Can Gobind Sugar Mills benefit from India's ethanol blending programme?
Answer: Yes. The government's focus on increasing ethanol blending and promoting biofuels is expected to support long-term demand for ethanol producers like Gobind Sugar Mills.