Daunne Agro Farm, one of Nepal’s leading egg producers, based in Sardi, Nawalparasi is set to issue an initial public offering (IPO) amounting to NRs 100 million, becoming the first company in the poultry sector to launch an IPO. The company has appointed Citizens Capital for the issuance and sales of its forthcoming IPO.
Established in 2018, the company specializes in poultry farming, focusing on ‘Layer Chicken’ and egg production. 40 institutional and individual shareholders have investment in the company with the largest shareholder, Kisan Dana Udhyog holding 29.4% stake in the business.
The farm began with a stock of 100,000 chickens and has grown to house approximately 400,000 laying hens. Plans are in place to increase this number to 600,000 in the near future. Currently, the farm produces over 350,000 eggs on a daily basis. The company also has financial backing from Nepal Opportunity Fund-1 managed by Aadhyanta Fund Management Limited.
Based in Sardi, Nawalparasi, the farm operates with advanced and automated machinery imported from Germany and Malaysia, with a view to ensure high quality meat and egg production. The infrastructure also includes automated air-conditioned technology to enhance its efficiency and production quality. In 2020, the company installed a fully automated Egg Conveyor at its plant.
The company’s operating income was NRs 81 million in the fiscal year 2020/21, which increased to Rs 1,148 million in the year 2023/24. However, it reported sizable losses in the last two fiscal years, according to its ICRA rating.
