The Indian capital market is constantly buzzing with new opportunities, and the SME segment continues to attract significant attention from growth-focused investors. Up next is the Initial Public Offering (IPO) from **SSMD Agrotech India Ltd.**, a company rooted deeply in the agro-food processing sector. Before you decide to bid, understanding the intricacies of this book-building issue is paramount. This comprehensive analysis breaks down everything you need to know about this upcoming launch.
Understanding SSMD Agrotech India Ltd.
SSMD Agrotech India Ltd. has evolved from its origins as proprietorship firms into a private limited company, specializing in the manufacturing, trading, and repacking of a diverse range of high-quality agro-food products. The company serves its vast customer base through four established brands: Manohar Agro, Super S.S., Delhi Special, and Shri Dhanlaxmi.
Core Business Snapshot:
- Product Portfolio: Includes staples like Puffed Rice, Ramdana (Cholai), Gram Flour, Matar Flour, Chana Dal, Idli Rava, and Rice Powder, alongside various by-products of Chana Dal.
- Distribution Network: Primarily relies on a robust network of distributors spanning Delhi/NCR, Haryana, Uttar Pradesh, Punjab, and Uttarakhand.
- Direct Sales Channel: Also caters to consumers directly (D2C) via its specialized micro manufacturing units.
- Infrastructure: The company boasts 3 operational manufacturing facilities and 1 D2C dark store.
Competitive Advantages Identified:
- A well-established and comprehensive manufacturing setup.
- A broad spectrum of food products offered under recognizable brands.
- Demonstrated capability in efficient resource deployment.
- A seasoned management team providing strong foundational leadership.
Key IPO Offering Details
This is a **book-building issue** focused entirely on a Fresh Issue of equity shares aimed at raising capital for business expansion and working capital needs.
| Parameter | Detail |
|---|---|
| Total Issue Size | ₹34.09 Crores |
| Shares Offered (Fresh Issue) | 28.17 Lakh Shares |
| Issue Type | Bookbuilding IPO (BSE SME) |
| Face Value | ₹10 per share |
| Price Band | ₹114.00 to ₹121.00 per share |
| Minimum Lot Size (Retail) | 1,000 Shares (2 Lots) |
| Minimum Investment (Retail) | ₹2,42,000 (at upper price band) |
IPO Subscription Timeline:
Progress Bar Simulation (Based on Dates)
Opening: Nov 25, 2025 | Closing: Nov 27, 2025
| Event | Tentative Date |
|---|---|
| IPO Opens | Tuesday, November 25, 2025 |
| IPO Closes | Thursday, November 27, 2025 |
| Finalization of Allotment | Friday, November 28, 2025 |
| Initiation of Refunds / Share Credit to Demat | Monday, December 1, 2025 |
| Tentative Listing Date (BSE SME) | Tuesday, December 2, 2025 |
Allocation Structure and Ownership
IPO Share Reservation Breakdown:
The total issue of 2,817,000 shares is strategically divided among different investor categories:
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Market Maker | 1,56,000 | 5.54% |
| Qualified Institutional Buyers (QIB) | 27,000 | 0.96% |
| Non-Institutional Investors (NII) | 13,17,000 | 46.75% |
| Retail Individual Investors (RII) | 13,17,000 | 46.75% |
| Total | 28,17,000 | 100.00% |
Promoter Group Stability:
- The company is promoted by Mr. Ishu Munjal, Mrs. Surbhi Munjal, and Mr. Jai Gopal Munjal.
- **Promoter Holding Pre-Issue:** 100%
- The issue structure confirms that this is a significant capital raise for growth, as no existing shares are being offloaded by the promoters.
Financial Health and Valuation Check
The financial data indicates a notable upward trajectory in performance leading up to the IPO. A standout feature is the substantial growth in profitability.
| Metric | Mar 31, 2024 | Mar 31, 2025 | Sep 30, 2025 (Half Year) |
|---|---|---|---|
| Total Income | 73.45 | 99.18 | 52.13 |
| Profit After Tax (PAT) | 1.10 | 5.38 | 3.84 |
| Total Borrowings | 7.02 | 6.07 | 6.88 |
Key Performance Indicators (KPIs):
As of March 31, 2025, the company demonstrates strong efficiency metrics:
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 130.46% |
| Return on Capital Employed (ROCE) | 100.85% |
| Debt/Equity Ratio | 0.88 |
| PAT Margin | 5.42% |
| Market Capitalization (Post-Issue Est.) | ₹104.86 Cr. |
Earnings Per Share (EPS) and P/E Comparison:
The post-issue valuation metrics based on the latest available earnings suggest:
| Metric | Pre-IPO EPS (Rs) | Post-IPO P/E (x) |
|---|---|---|
| Valuation Basis | 9.19 | 13.67 |
Objectives of Capital Utilization
The ₹34.09 Crore raised through this fresh issue is earmarked for strategic investments, focusing heavily on strengthening operations and reducing existing debt obligations.
| S.No. | Purpose of Issue | Amount (₹ in Crores) |
|---|---|---|
| 1 | Funding Working Capital Requirements | 13.10 |
| 2 | Repayment of Specific Borrowings | 6.83 |
| 3 | Capex: Setting up new D2C dark Stores | 2.04 |
| 4 | Capex: Machinery for Namkeen Plant | 0.97 |
| 5 | General Corporate Purposes | (Balance) |
Initial Assessment: Strengths, Weaknesses, Opportunities, and Threats (SWOT)
A balanced view requires evaluating both the inherent advantages and potential roadblocks for SSMD Agrotech India Ltd.
Strengths:
- High growth observed in PAT (388% increase) between FY24 and FY25.
- Strong Return Ratios (ROE > 130%).
- Deep regional distribution footprint in North India.
Weaknesses:
- Reliance on traditional distribution channels alongside D2C expansion.
- Relatively small market capitalization (around ₹105 Cr post-listing).
- High minimum investment requirement for retail participants (₹2.42 Lakhs).
Opportunities:
- Expansion into packaged food segments beyond core flours and dals.
- Leveraging new capital expenditure to scale the direct-to-consumer presence.
- Untapped potential in adjacent geographical markets.
Threats:
- Vulnerability to fluctuating commodity prices (agro-food sector risks).
- Competition from established national FMCG giants.
- Regulatory changes affecting food processing and distribution.
Intermediaries Facilitating the Issue
Smooth execution of an IPO relies heavily on experienced professionals managing the process.
| Role | Entity |
|---|---|
| Book Running Lead Manager (BRLM) | 3Dimension Capital Services Ltd. |
| Registrar to the Issue | Bigshare Services Pvt.Ltd. |
| Market Maker | Nikunj Stock Brokers Ltd. |
How to Participate in the SSMD Agrotech India IPO
For those looking to apply, modern application methods via major brokers are available.
Applying via a Leading Discount Broker (e.g., Zerodha):
- Log into your broker’s online portal (like Zerodha Console).
- Navigate to the 'IPOs' section within your portfolio view.
- Locate the SSMD Agrotech India IPO and select the 'Bid' option.
- Input the required application details (UPI ID, quantity, and price).
- Submit the application form electronically.
- Crucially, confirm the mandate instantly via your linked UPI application (e.g., Net Banking or UPI app) before the cut-off time (5 PM on Nov 27, 2025).
Applications are typically processed using either the UPI mandate system or through the ASBA facility available via net banking services from specified banks.
Contact Information for Reference:
Should you require direct information from the issuer or the registrar:
- Address: Khasra No. 640/641, Libaspur Road, Village Siraspur, New Delhi, 110042
- Email: cs@houseofmanohar.com
- Email: ipo@bigshareonline.com
- Website Support: Check their official online portal for status updates.
Final Thoughts on Consideration
The SSMD Agrotech India IPO presents a chance to invest in a company demonstrating significant recent improvements in profitability within the essential agro-food sector. The objective of utilizing the funds for working capital and targeted expansion suggests a focus on sustaining this growth momentum. As an SME offering, investors should factor in the higher inherent risks associated with smaller entities while evaluating the company's strong pre-IPO performance indicators. Thorough review of the Draft Red Herring Prospectus (DRHP) and Red Herring Prospectus (RHP) remains the cornerstone of any investment decision.