Unlock the Potential: A Deep Dive into the Pajson Agro India SME IPO
The Indian SME segment continues to be a vibrant playground for investors looking for high-growth opportunities. Among the upcoming listings generating significant buzz is the Pajson Agro India IPO. This book-building issue offers a chance to invest in a rapidly expanding player in the cashew processing industry. Before you consider bidding, let’s break down everything you need to know about this offering.
Understanding Pajson Agro India: The Business At Its Core
Established in 2021, Pajson Agro India Ltd. is carving out a significant niche by specializing in the processing of raw cashew nuts into high-quality cashew kernels for both domestic and international markets. Beyond kernels, the company smartly monetizes by-products like cashew husk and shells for industrial and agricultural applications.
Key Business Highlights:
- **Product Range:** Cashew kernels (sold in bulk and retail under the 'Royal Mewa' brand) and cashew by-products.
- **Operational Reach:** Currently serves customers across 18 states and 3 Union Territories in India.
- **Infrastructure:** Operates a substantial cashew processing plant in Visakhapatnam, Anakapalli, Andhra Pradesh, with a capacity of 18,000 metric tonnes, supported by an in-house packaging unit.
- **Workforce:** Employs 465 permanent personnel as of July 2025.
Competitive Edge:
The company relies on several strengths to maintain its market standing:
- Strategically positioned processing facility equipped with modern machinery.
- Effective raw material procurement and management systems.
- A well-established network of wholesalers and a diverse customer base.
- Strong backing from experienced promoters.
Pajson Agro India IPO Snapshot: Key Financials and Offering Details
This offering is a **Bookbuilding IPO** hitting the **BSE SME** platform, aiming to raise ₹74.45 Crores entirely through a **Fresh Issue** of equity shares.
IPO Summary Table:
| Metric | Detail |
|---|---|
| Issue Type | Bookbuilding (Fresh Issue) |
| Total Issue Size (Shares) | 63,09,600 Equity Shares |
| Total Issue Size (Value) | ₹74.45 Crores |
| Price Band | ₹112.00 to ₹118.00 per share |
| Listing Platform | BSE SME |
| Face Value | ₹10 per share |
Investment Parameters and Lot Size:
The minimum investment requirement is crucial for retail applicants.
| Application Tier | Lots | Shares | Minimum Investment (at Upper Price) |
|---|---|---|---|
| Retail (Minimum) | 2 | 2,400 | ₹2,83,200.00 |
| S-HNI (Minimum) | 3 | 3,600 | ₹4,24,800.00 |
Bids must be placed in multiples of 1,200 shares thereafter.
IPO Schedule & Timeline: Marking Your Calendar
Timing is everything in an IPO. Here is the tentative schedule for the Pajson Agro India offering:
| Milestone | Tentative Date |
|---|---|
| IPO Opens | Thursday, December 11, 2025 |
| IPO Closes | Monday, December 15, 2025 |
| Allotment Finalization | Tuesday, December 16, 2025 |
| Initiation of Refunds/Demat Credit | Wednesday, December 17, 2025 |
| Tentative Listing Date (BSE SME) | Thursday, December 18, 2025 |
Subscription Allocation Breakdown:
Understanding how the shares are distributed across investor classes helps gauge demand from different segments.
| Investor Category | Shares Offered | Percentage (%) |
|---|---|---|
| Qualified Institutional Buyers (QIB) | 29,54,400 | 46.82% |
| Non-Institutional Investors (NII) | 9,00,000 | 14.26% |
| Retail Individual Investors (RII) | 20,97,600 | 33.24% |
| Anchor Investors | 17,72,400 | 28.09% |
| Market Maker Reserved | 3,57,600 | 5.67% |
Financial Health Check: Performance Indicators
A review of the company's recent financial trajectory shows robust growth leading up to the IPO filing. The figures below are presented in ₹ Crore.
Key Financial Results (Restated Figures):
| Metric | Mar 31, 2023 | Mar 31, 2024 | Mar 31, 2025 | Sep 30, 2025 (Interim) |
|---|---|---|---|---|
| Total Income | 101.13 | 96.04 | 187.28 | 118.37 |
| Profit After Tax (PAT) | 0.02 | 3.35 | 20.42 | 14.20 |
| Total Borrowing | 0.00 | 14.57 | 14.57 | 40.04 |
| Net Worth | 20.44 | 23.79 | 44.21 | 58.40 |
Notably, the PAT has seen a dramatic surge, increasing by 509% between FY24 and FY25, alongside a 95% rise in revenue over the same period, indicating significant operational scale-up.
Valuation & Efficiency Metrics (As of March 31, 2025):
| Key Performance Indicator (KPI) | Value |
|---|---|
| Return on Equity (ROE) | 60.05% |
| Return on Capital Employed (ROCE) | 48.21% |
| Debt-to-Equity Ratio | 0.33 |
| PAT Margin | 10.90% |
| Price to Book Value (P/B) | 4.67x |
Earnings Per Share (EPS) and Promoter Holding:
| Parameter | Pre-IPO | Post-IPO |
|---|---|---|
| EPS (Rs) | 11.67 | 11.92 |
| Promoter Holding (%) | 85% | 62.47% |
The promoter group, comprising Aayush Jain, Anjali Jain, and Pulkit Jain, is diluting their stake to facilitate the public issue, maintaining significant control post-listing.
Strategic Use of Funds and Key Intermediaries
Objectives of the Issue:
The funds raised are strategically earmarked for expansion, signaling future growth plans:
| S.No. | Purpose | Amount (₹ in Crores) |
|---|---|---|
| 1 | Capital Expenditure for establishing a Second Cashew Processing Facility in Vizianagaram, Andhra Pradesh | 57.00 |
| 2 | General Corporate Purpose | (Balance) |
Key Stakeholders in the IPO Process:
- **Book Running Lead Manager (BRLM):** Smart Horizon Capital Advisors Pvt.Ltd.
- **Registrar to the Issue:** Bigshare Services Pvt.Ltd. (Contact: +91-22-6263 8200, ipo@bigshareonline.com).
- **Market Maker:** Giriraj Stock Broking Pvt.Ltd.
SWOT Analysis for Investor Consideration
To provide a holistic view, here is a simplified internal assessment of the company’s standing:
Strengths (Internal Positive)
- Exceptional profitability growth demonstrated in the last fiscal year.
- Strong return ratios (ROE, ROCE > 45%).
- Low existing debt profile (Debt/Equity 0.33).
- Modern processing infrastructure and in-house packaging capability.
Weaknesses (Internal Negative)
- Relatively short operational track record (incorporated in 2021).
- High dependence on the core cashew processing business.
- Significant capital expenditure planned post-IPO, increasing near-term risk.
Opportunities (External Positive)
- Expanding market demand for healthy dry fruits and packaged nuts.
- Expansion into a second processing unit diversifies capacity.
- Growing export potential for Indian cashew kernels.
Threats (External Negative)
- Vulnerability to fluctuations in raw cashew nut supply and pricing.
- Competition from established national and international processors.
- Potential impact from changes in international trade policies impacting exports.
Making Your Application: How to Participate
For investors using popular retail brokerage platforms, the application process is standardized, often leveraging UPI mandates.
General Application Guidance:
- Applications are accepted from December 11 to December 15, 2025. Ensure your UPI mandate is approved by 5 PM on the closing date.
- Investors can apply either through the ASBA facility provided by banks via net banking or through broker portals using UPI.
- For those using a discount broker platform, navigate to the IPO section on their portal or app, select Pajson Agro India, enter the number of lots (minimum 2), and authorize the payment via the linked UPI ID.
Final Takeaway: Weighing the Potential
The Pajson Agro India SME IPO presents a compelling narrative backed by impressive recent financial performance, particularly in profit growth. The primary use of funds is dedicated to scaling up processing capacity, aligning the company for future volume increases. As with all SME offerings, while the growth potential can be high, investors should be mindful of the inherent risks associated with smaller companies, including volatility post-listing and dependence on specific commodity cycles. A thorough assessment of the Price-to-Book value relative to sector peers and careful monitoring of the subscription status during the bidding window are advised before committing capital.