The Indian capital markets continue to buzz with activity, especially in the SME segment, offering opportunities for investors looking beyond the mainboard giants. One such upcoming opportunity drawing attention is the Initial Public Offering (IPO) from Stanbik Agro Limited. This company is carving a niche in the agricultural supply chain, promising fresh produce straight from the farm. Before jumping into the subscription window, a deep dive into the company’s fundamentals, issue structure, and future roadmap is essential for making an informed decision.
Stanbik Agro: Connecting Fields to Consumers
Established in 2021, Stanbik Agro Limited focuses on streamlining the agricultural supply chain. They aim to bridge the gap between farmers and end-users by emphasizing quality and efficiency. Their business model spans several critical areas within the agro-commodity space.
Core Business Verticals:
- Contract Farming: Collaborating with farmers to cultivate specific commodities like sesame, cumin, and cotton based on soil suitability.
- Modern Retailing: Directly supplying farm-fresh produce to consumers via contemporary retail channels.
- B2B Supply Chain: Handling large-scale supply of agricultural commodities to wholesalers, traders, and bulk buyers, often utilizing e-commerce B2B platforms.
This integrated approach allows the company to manage quality control right from the source. As of 2025, the company is supported by a dedicated team of 16 employees.
Key IPO Offering Structure Details
The Stanbik Agro IPO is a Fixed Price Issue hitting the BSE SME segment, aiming to raise capital primarily through a fresh issuance of shares. Here is a snapshot of the offering details:
| Stanbik Agro IPO Snapshot | |
|---|---|
| Issue Type | Fixed Price IPO (Entirely Fresh Issue) |
| Total Issue Size (Shares) | 4,092,000 Shares |
| Total Issue Value | ₹ 12.28 Crores |
| Face Value per Share | ₹ 10 |
| Issue Price per Share | ₹ 30.00 |
| Listing Venue | BSE SME |
Investment Timeline and Allotment Schedule
Mark your calendars! The subscription window and tentative dates for allotment and listing are crucial for investors planning their bids.
| Milestone | Tentative Date |
|---|---|
| IPO Opens (Subscription Start) | Friday, December 12, 2025 |
| IPO Closes (Subscription End) | Tuesday, December 16, 2025 (Cut-off for UPI Mandate: 5 PM) |
| Tentative Allotment Finalization | Wednesday, December 17, 2025 |
| Initiation of Refunds / Credit of Shares to Demat | Thursday, December 18, 2025 |
| Tentative Listing Date on BSE SME | Friday, December 19, 2025 |
For those utilizing UPI mandates, ensuring confirmation before the 5 PM deadline on the closing day is vital for inclusion in the allotment process.
Subscription Categories and Lot Sizes
The IPO reserves a significant portion for Retail Individual Investors (RIIs) and Non-Institutional Investors (NIIs).
| Reservation Breakdown | |
|---|---|
| Investor Category | Shares Offered (%) |
| Market Maker | 2,08,000 Shares (5.08%) |
| NII (HNI) | 19,40,000 Shares (47.41%) |
| Retail Individual Investors (RII) | 19,44,000 Shares (47.51%) |
| Total Shares | 40,92,000 (100.00%) |
Understanding the lot size dictates the minimum investment required:
| Investor Type | Application Lots | Shares Applied | Minimum Investment Amount |
|---|---|---|---|
| Retail Investor (Minimum) | 2 Lots | 8,000 | ₹ 2,40,000.00 |
| HNI Investor (Minimum) | 3 Lots | 12,000 | ₹ 3,60,000.00 |
Note that the minimum investment for retail investors (₹2,40,000) is set based on the upper price band, considering the minimum application size of 2 lots (8,000 shares).
Financial Health Check: Performance Indicators
Analyzing the company’s recent financial trajectory provides crucial context. Research into the filings indicates robust growth in recent periods.
Revenue and Profit Growth Snapshot
Between the financial year ending March 31, 2024, and March 31, 2025, Stanbik Agro demonstrated significant top-line and bottom-line expansion, with revenue climbing by 98% and Profit After Tax (PAT) surging by 102%.
| Financial Metric (₹ Crore) | Mar 31, 2023 | Mar 31, 2024 | Mar 31, 2025 | Sep 30, 2025 (Half Year) |
|---|---|---|---|---|
| Total Income | 19.96 | 26.55 | 52.49 | 35.55 |
| Profit After Tax (PAT) | 1.02 | 1.85 | 3.74 | 2.22 |
| Total Borrowing | 0.00 | 0.32 | 0.09 | 0.10 |
Key Performance Ratios (As of Mar 31, 2025)
| KPI | Value |
|---|---|
| Return on Equity (ROE) | 22.33% |
| Return on Capital Employed (ROCE) | 27.02% |
| Debt to Equity Ratio | 0.02 |
| PAT Margin | 7.12% |
| Price to Book Value (P/BV) | 1.65 |
The promoter holding remains substantial, though it sees dilution post-IPO:
- Promoter Holding Pre-Issue: 98.92%
- Promoter Holding Post-Issue: 68.54%
The key individuals driving the company are Promoters Mr. Ashokbhai Dhanajibhai Prajapati and Mr. Chirag Ashokbhai Prajapati.
Objectives Driving the Capital Raise
The purpose of tapping the public market is clearly defined by the company's need to scale operations, especially its retail footprint.
Utilization of Net Proceeds (₹ in Crores):
- Expansion of Retail Network (New Outlets): ₹ 3.58 Cr
- Working Capital Requirements: ₹ 6.39 Cr
- Security Deposits: ₹ 0.37 Cr
- Brokerage Charges: ₹ 0.19 Cr
- General Corporate Purpose: ₹ 1.20 Cr
Ecosystem Participants: Bankers and Registrars
The smooth execution of any IPO relies heavily on the intermediaries involved.
Registrar Details
The responsibility for allotment and investor relations post-listing falls to:
- Registrar: Purva Sharegistry (India) Pvt.Ltd.
- Contact: +91-022-23018261/ 23016761
Lead Manager
The Book Running Lead Manager overseeing the IPO process is:
- Lead Manager: Grow House Wealth Management Pvt.Ltd.
Additionally, Mnm Stock Broking Pvt.Ltd. has been appointed as the Market Maker to ensure liquidity post-listing on the BSE SME platform.
A Quick SWOT Assessment for Potential Investors
To provide a balanced view, here is an assessment of the strengths, weaknesses, opportunities, and threats facing Stanbik Agro ahead of its public debut:
| Strengths | Weaknesses |
|---|---|
| Strong growth trajectory in PAT (102% YoY growth). | Operating in a highly competitive and fragmented agricultural sector. |
| Low Debt-to-Equity ratio (0.02), indicating a healthy balance sheet. | Reliance on high industry average margins, which may not be sustainable. |
| Integrated business model covering farming, B2B, and retail. | Relatively new company (Incorporated in 2021). |
| Opportunities | Threats |
| Expansion of retail network utilizing IPO proceeds for growth. | Volatility in commodity prices impacting profitability. |
| Leveraging technology in the B2B supply chain. | Regulatory changes within the agricultural commodity trading space. |
| Increasing consumer preference for traceable, farm-fresh produce. | Intense competition from established, larger agri-businesses. |
Concluding Thoughts on the Stanbik Agro IPO
Stanbik Agro is presenting a compelling growth story anchored in the essential sector of agriculture. The financials reflect impressive recent performance and management is clearly targeting expansion through the IPO proceeds. However, the business operates in a sector notorious for thin margins and high external dependency on weather and market forces.
While some industry watchers suggest the issue price appears attractively valued based on recent earnings, investors should proceed with caution. The transition from a largely promoter-held entity to a public company in a challenging segment requires careful monitoring. For seasoned investors comfortable with the volatility inherent in SME listings and agricultural commodities, a moderate allocation might be considered for medium-term prospects. Others might prefer to observe the initial post-listing performance before committing capital.