From farm to stock market: Srinagar Agro prepares for IPO transformation

KATHMANDU: Srinagar Agro, a prominent player in livestock and grain production for over two decades, is embarking on an initial public offering (IPO) journey. Formerly known as Srinagar Agro Farm Pvt Ltd, the company, with a capital of one billion, has evolved into a public entity with expansion plans and new projects.

Renowned for its annual turnover of one billion rupees, the company now operates as Srinagar Agritech Industries Limited. Backed by a network of over 5,000 farmers, entrepreneurs, and businessmen, Srinagar is poised to go public within the next year, facilitated by an agreement with Nabil Investment Banking Limited.

Originating as a small chicken farm in Balaju, under the leadership of Satish Chandra Shrestha, Srinagar’s influence now spans across Nepal, particularly in Lumbini province. Shrestha, who transitioned from a successful banking career to agriculture, envisions a future where agriculture serves both economic and consumer interests.

Srinagar’s journey, starting with just a few thousand chickens, now touches the lives of 5,000 farmers. The company’s focus on quality chicks, grains, and eggs has propelled it to become a trusted brand in animal husbandry and feed products.

Srinagar’s resilience and appeal to investors, amid economic challenges, signify its potential to thrive. Shrestha’s vision extends beyond its current success, anticipating increased income and further investments upon going public.

Srinagar’s impact is not limited to profits; it extends to consumers, farmers, and the broader economy. Shrestha emphasizes the pivotal role of agriculture in countering Nepal’s economic crisis and underscores the company’s dedication to benefiting farmers.

The company’s accomplishments include being Nepal’s first ISO 9001:2015 certified integrated agribusiness firm. As it expands into prepared and processed chicken products, Srinagar Agro’s commitment to farmers and agrovets remains unwavering, with services extended through contract farming.

Srinagar’s centralization in Lumbini propels both revenue and regional influence. Under Shrestha’s guidance, the company has established its brand in West Nepal’s poultry sector. It operates a diverse array of agricultural activities, including grain industry, hatchery, and commercial farms.

With the aim of enhancing its business, Srinagar Agritech Industries Limited is engaging in strategic acquisitions and mergers. The upcoming year will see the issuance of a balance sheet as per the Securities Board of Nepal requirements, reflecting the company’s ongoing growth.

Shrestha’s experience underscores the viability of agriculture as a profitable sector with the right plan and investment. While Nepal’s regulatory complexities pose challenges, Shrestha remains optimistic about the sector’s potential to generate sustainable income.

Fiscal Nepal |
Friday August 11, 2023, 11:22:42 AM |

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