Gurunanak Agriculture Launches Rs 29 Crore IPO on NSE SME
Gurunanak Agriculture India, an agricultural machinery manufacturer, has opened its IPO on the NSE SME platform to raise Rs 29 crore. The issue consists of 38.4 lakh fresh shares priced at Rs 75 each, with subscription open from September 22 to 26. The company plans to use the proceeds for establishing a new harvester manufacturing unit and meeting working capital requirements. Despite a marginal revenue decrease, Gurunanak Agriculture reported a significant 147.35% increase in profit after tax for FY25.
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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:
| Particular | FY22 | FY23 | YoY Change |
|---|---|---|---|
| Revenue | 44.09 | 43.95 | -0.32% |
| Profit After Tax | 2.45 | 6.06 | 147.35% |
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:
- Establishment of a new harvester manufacturing unit: Rs 17.07 crore
- Meeting working capital requirements: Rs 6.77 crore
- Covering issue expenses
This strategic allocation of funds aims to expand the company's manufacturing capabilities and strengthen its working capital position.
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