Gurunanak Agriculture India made its stock market debut today, with shares expected to list near the issue price of ₹75 per share, as indicated by a zero grey market premium. The initial public offering (IPO), which aimed to raise ₹28.8 crore, received a modest overall subscription of 1.7 times.

Subscription Details

The IPO garnered varied interest from different investor categories:

• Retail investors showed the strongest support, with the retail portion being subscribed 3.1 times.
• Non-institutional investors, however, displayed a weak response with a subscription rate of just 0.3 times.

Company Profile

Gurunanak Agriculture India specializes in manufacturing agricultural machinery, including:

• Threshers
• Harvesters
• Reapers
• Rotavators

The company operates from its manufacturing facility located in Durg, Chhattisgarh. It has established a presence in seven Indian states and has expanded its reach to international markets, exporting to Nepal, Sri Lanka, South Africa, Nigeria, and Uganda.

Financial Performance

The company has demonstrated financial stability and growth:

Gurunanak Agriculture maintained steady revenues of approximately ₹44.00 crore. However, the company witnessed a significant surge in profitability, with profit after tax increasing by 147% from ₹2.50 crore to ₹6.10 crore, driven by improved margins.

Future Plans

As part of its growth strategy, Gurunanak Agriculture has outlined plans to:

1. Establish a dedicated harvester manufacturing unit
2. Expand its product portfolio to cater to a wider range of agricultural needs

The muted response to the IPO and the zero grey market premium suggest that investors are cautious about the company's short-term market performance. However, the company's strong financial growth and expansion plans may provide potential for long-term value creation.

Investors and market observers will be closely watching the stock's performance in the coming days to gauge market sentiment and the company's ability to deliver on its growth objectives.

Gurunanak Agriculture India, a manufacturer of agricultural machinery, has launched its Initial Public Offering (IPO) on the NSE SME platform. The company aims to raise Rs 29 crore through this public issue, which opened for subscription on September 22 and is set to close on September 26.

IPO Details

The IPO consists entirely of a fresh issue of 38.4 lakh shares priced at Rs 75 each. Post-issue, the company's market capitalization is expected to be around Rs 90 crore. The shares are scheduled to list on the NSE SME platform on October 1.

Market Sentiment

The grey market premium for Gurunanak Agriculture's IPO currently stands at zero, indicating muted investor expectations for the issue.

Company Profile

Gurunanak Agriculture India specializes in manufacturing agricultural machinery, including threshers, harvesters, and rotavators. The company operates from its facility in Durg, Chhattisgarh, and serves seven states through a network of 48 dealers. Additionally, the company exports its products to markets in Africa and South Asia.

Financial Performance

The company's financial performance shows mixed results:

While revenue remained relatively flat, decreasing marginally by 0.32% from Rs 44.09 crore in FY22 to Rs 43.95 crore in FY23, the company's profit after tax saw a significant surge of 147.35%, rising from Rs 2.45 crore to Rs 6.06 crore.

Utilization of IPO Proceeds

The company plans to utilize the IPO proceeds for the following purposes:

1. Establishment of a new harvester manufacturing unit: Rs 17.07 crore
2. Meeting working capital requirements: Rs 6.77 crore
3. Covering issue expenses

This strategic allocation of funds aims to expand the company's manufacturing capabilities and strengthen its working capital position.