Oceanaa Biotek - an ocean of opportunity?

(vikas sinha) #21

They are being very upfront by providing for it. That is a plus.
The ‘tapak7’ guy on twitter, blames auditor for signing off.
How can auditor force a company to remit money?
They can only provide the fullest disclosure.
IMHO, too much is being read into the opinion of the twitterati.

(vikas sinha) #22

IPO was Mar 18, 2014 - Mar 20, 2014

They have changed business focus since IPO from Lab testing to Hatchery and so on.

Draft prospectus: https://www.bseindia.com/downloads/ipo/2014113163930Draft%20Prospectus.pdf

Incorporated in 2005, Oceanaa Biotek Industries Ltd (OBIL) is a specialized food testing laboratory and engaged in the business of food analysis. They are setting up a specialized food analysis laboratory to perform consumer food testing for food producers worldwide. OBIL is an independent entity of the Oceanaa group of companies with interests in processing of marine products, vegetables and fruits - both for export sector and domestic retail sector.

OBIL’s core business will revolve around offering complete testing solutions to customers on contract basis. Testing includes the following:

  1. Food Quality Analysis
  2. Food Safety Analysis

Company’s customers includes Food & Feed Industry, Government regulatory bodies (Health, Agriculture, Food Processing), Hotels & Restaurants, Other local food testing laboratories etc. Company has tied up with M/s Food Tech International, a consulting firm, active in the food sector in India as a consultant for the purpose of setup and operational assistance and product delivery assistance.

(vikas sinha) #23

Main objects of the Company [PAGE 81 of IPO DRHP]
The main objects of our company as set out in its Memorandum of Association are:


to carry on the business of manufacturing, producing, harvesting, hatching, farming, cultivation, culturing, harvesting or any other means, the business of marketing, buying, selling, importing, stocking, packing, repacking and otherwise aves and mamallia, shrimp, prawns, 'snails, mussels, hilsa, bhetki, mackerel, squids, octopus, dry fish, fish products,

(donbox5) #24

There seems to be too much overlap in the business objectives of non listed OESIL and the listed Oceanaa Biotek.


This is a red flag for me.

(vikas sinha) #25

Yes, too much overlap. They seem to be doing the same things now with OBIL that they have already done with the rest of unlisted group. The only difference seems that they were focusing on Vannamei but will now diversify to Tiger and Indian shrimps.

Feeds is something they are doing totally new.

The group has Oceanic Research Achievements Institute (ORAI) and own labs. Maybe OBIL started with helping farmers with access to such Labs.
Group has certifications BRC - British, FDA - American.

I would see this as being a very good point, having association to such a strong group.

(bharat19) #26

If the unlisted business is doing the same business which is that of listed one , possibility is always there for clash of interest. Also such non payments of PF are clearly a poor sign of Corporate Governance. Why should one take a risk by investing in such business when lots of great options and opportunities are available to explore.
Disc: No Positions , No interest

(vikas sinha) #27

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(vikas sinha) #28

(vikas sinha) #29

(vikas sinha) #30

Interestingly, these guys seem to have never actually paid taxes, only making upfront provisions in the PL!

(vikas sinha) #31

Yes, it seems like guys did not do Vannamei seeds before OBIL.
And most of their operations were integrated, for internal use, so even if they had Labs and hatcheries, these were purely for internal use only and not for commercial.

(vikas sinha) #32

Promoters were not doing so well, at least in 2013, from DRHP of IPO in 2014.

(vikas sinha) #33

Risk = Rewards, depending of course on your appetite and judgement!

30x in 2 years.

Before October 2015, average = 6
March and April 2017, average = 150 (peak 180)

You are serious about Rs 30k of PF?

(vikas sinha) #34

Un-remitted/Provisional taxes mystery could be related to this.
There was no litigation or Tax proceedings mentioned in “LEGAL AND OTHER INFORMATION”
Pages 127 of DRHP.

(Devaki Nandan Tripathy) #35

It is not a question of Rs 30k. Its a question of management integrity.

(bharat19) #36

Promoter Holdings :
March 2014 : 59 %
March 2015 : 51%
March 2018 : 39%
If the business is that sound , why the promoters are offloading their shares !
Also 4 Directors in the board are from same family , one is just 10th Standard Pass.
No mention of the company name in Oceanna group of Companies
Seems other promoter’s companies too are running very poorly as reflected from negative worth.
I would never wanna risk my money with such visible signs of poor Governance.

(Raawake) #37

There are chances the personal details might get misused. Plz hide those atleast in this forum😂

(vikas sinha) #38

The latest dilution is explained here. It is due to shares+cash deal of takeover.

Board is changed now, more qualified (yet family) people coming on board.

(vikas sinha) #39

This already fully explains both the promoter share dilutions, in 2015 and 2017.
They are not selling shares!
They are in fact expanding the business. Not bad deal to get big hatchery in 2017, for 20% of company shares.

(vikas sinha) #40

This group seems HUGE! These losses total, in 2013, are 40x 2018 TTM profits of OBIL.
Yet, none were sick as per disclosure in IPO DRHP, as per Sick Industrial Companies Act (SICA).
There are others, not shown, because they were showing profits.
The smallest among them, had negative worth. 2013 was not a particular bad year for this industry, maybe they were doing some capital expenditures. Cannot say, for unlisted entities.

OBIL did SME IPO for 2 Cr.
Maybe our eminent bankers, could not see any gains, from funding them anymore. I may one fine day trust their opinion too. :stuck_out_tongue_winking_eye:

These guys seem serious about their MoA, and are expanding to cover a large number of activities, different from the IPO target.