Gujarat Peanut and Agri Products
- Gujarat Peanut and Agri Products is coming out with an initial public offering (IPO) of 29,76,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 80 per equity share.
- The issue will open on September 25, 2025 and will close on September 29, 2025.
- The shares will be listed on SME Platform of BSE.
- The share is priced at 8.0 times higher to its face value of Rs 10.
- Book running lead manager to the issue is Finshore Management Services.
- Compliance Officer for the issue is Jeetkumar B. Raychura.
Profile of the company
Incorporated in the year 2005, the company is engaged into cleaning, grading, processing, sorting, buying, selling, trading and marketing of agricultural produce and commodities. Its product portfolio include products such as Peanut & Peanut products like Ground Nut Inshell, Ground Nut Oil, Ground Nut Seeds, Ground Nut Split, Groundnut Husk, Peanut Blanched, Peanut Rejection; seeds like Black Sesame Seed, Hulled Sesame Seeds, Sesame Seeds, Watermelon Seeds; spices like Coriander Seeds, Cumin Seeds, Fenugreek, Fennel Seed, Mustard Seed, Kalonji (Nigella Seeds); food grains and pulses like Brown Eye Beans, Chickpeas (Chana Dal), Green Moong, Kidney Eye Beans, Moong Dal, Pigeon Peas, Red Lentils, Urad (Urad Dal), Toor (Toor Dal), Yellow Peas, Soyabean.
The company has major presence in the states of Gujarat, West Bengal, Rajasthan, Maharashtra, Madhya Pradesh, etc. Further, it exports its products to countries such as UAE, China, Thailand, Indonesia, Iraq, Iran, Poland, Kosovo, Lebanon, and others. Majority of its exports include Sesame Seeds, Hulled Sesame Seeds, Groundnut Seeds, Blanched Peanut, Cumin Seeds, Kalonji. It imports Sesame Seeds, Chickpeas, Pigeon Peas, Brown Eye Beans, Cumin Seeds, Soyabeans & Watermelon Seeds in India in bulk quantities. It imports majority of its raw material from Sudan, Tanzania, China, Brazil, etc. It sells its products in bulk quantities. It follows standard packing process to ensure that quality and authentic taste of commodities remains intact.
Its extensive network of quality buyers reaches across numerous countries and spans multiple continents. It is recognized as a One Star Export House by the Directorate General of Foreign Trade and has received an Exporter Registration Certificate from the Spices Board of India. Additionally, it is registered with APEDA, IOPEPC and the Federation of Indian Export Organizations. The company also boasts Food Safety System Certification 22000 certification by ISOQAR consisting the elements i.e. ISO 22000:2018, ISO/TS 22002-1:2009 and Additional FSSC 22000 requirements for Processing (Cleaning, Shelling, Grading, Sortex, roasting, blanching) of Groundnut kernels / peanuts and packing in Paper bags & HDPE bag. Processing (Cleaning, Grading, Colour Sortex) of Spices and Sesame seeds (Hulled / Natural / Black) and packing in Paper bags & HDPE bag.
Proceed is being used for:
- Funding capital expenditure towards purchase of additional plant and machinery
- Meeting the working capital requirements
- General corporate purposes
Industry Overview
India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for around 55% of India’s population. India has the world's largest cattle herd (buffaloes), the largest area planted for wheat, rice, and cotton, and is the largest producer of milk, pulses, and spices in the world. It is the second-largest producer of fruit, vegetables, tea, farmed fish, cotton, sugarcane, wheat, rice, cotton, and sugar. The agriculture sector in India holds the record for second largest agricultural land in the world generating employment for about half of the country’s population.
The Indian agricultural sector is predicted to increase to $24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. The first advance estimate for FY25 indicated a food grain production of around 165 million metric tons. In FY24, India produced over 332 million metric tons of food grains. The Agriculture and Allied industry sector witnessed some major developments, investments, and support from the Government in the recent past. Between April 2000- September 2024, FDI in agriculture services stood at Rs 26,836 crore ($ 3.11 billion).
The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price.
Pros and strengths
Strong presence in market: The company has a strong presence in agricultural market thereby enabling it to strategize and switch over exports/imports from one commodity to another in accordance with change in demand or inconsistency in pricing for any commodity during any season. Its management team continuously monitors and undertakes deep research of the current trends and demand of agricultural produce and commodities in the market and accordingly it easily switches over to the agricultural produce or commodity in demand. This policy adopted by the management ensures that the company does not pass through a lean period during the year.
Long term relationship with clients and repeat business: It enjoys a good reputation and despite increase in competition, has received repeat orders from several of its prominent clients. Its clientele spans both domestic and international markets and reflects longstanding associations. It is committed to understanding and addressing its clients’ needs, which enables the company to maintain a long-term working relationship with its clients and improve its retention strategy. The portfolio of its existing clients provides it with a competitive advantage in attracting new clients and expanding its operations.
Quality assurance and accreditations: Quality plays one of the most vital roles in the success of any organization. It is focused on providing high quality products. Its dedicated efforts towards the quality of products, processes and inputs have helped it gain a competitive advantage over others. Its quality products have earned it a goodwill from its customers, which has resulted in repeat services orders from many of them.
Risks and concerns
Dependent upon few customers: A portion of the company’s revenues has been dependent upon a few customers. For the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, its top ten customers accounted for around 62.03%, 58.40% and 51.63% of its revenue from operations. Its business from customers is dependent on its continuing relationship with such customers, the quality of its products and its ability to deliver on their orders, and there can be no assurance that such customers will continue to do business with the company in the future on commercially acceptable terms or at all. However, in case of any change in the buying pattern of its end users or disassociation of major customers can adversely affect its business or if its customers do not continue to purchase products from the company, or reduce the volume of products purchased from the company, its business prospects, results of operations and financial condition may be adversely affected.
Dependent on key suppliers: A substantial portion of the company’s purchases has been dependent upon a few suppliers. Its inability to obtain raw material in a timely manner, in sufficient quantities could adversely affect its operations, financial condition and/or profitability. It depends on a number of suppliers, for procurement of raw materials required for processing of its products. For the financial year ended March 31, 2025, March 31, 2024 and March 31, 2023, top ten suppliers accounted for 87.08%, 66.13% and 71.45% of its total purchases respectively. It has not entered into long term contracts with its suppliers and prices for raw materials are normally based on the quotes it receives from various suppliers/brokers. The company’s business is dependent on certain suppliers and the loss of one or more of them would have a material adverse effect on the business.
Delays or defaults in customer payments: It is exposed to payment delays and/or defaults by its customers and its financial position and financial performance are dependent on the creditworthiness of its customers. Further, it may not receive advance payment from its customers after receiving the purchase orders. Delays in customers’ payments may require it to make a working capital investment. If a customer defaults in making payments where it has devoted significant resources or where it has invested significant resources is delayed, cancelled, or does not proceed to completion, it could have an adverse effect on its operating results. If such events or circumstances occur, its financial performance and its operating cash flows may be adversely affected.
Outlook
The company is primarily involved in the cleaning, grading, processing, sorting and marketing of wide range of agricultural produce, commodities, food grains & pulses. Their offerings include various peanut products, seeds, spices, pulses and oils in different grades and qualities. The company has major presence in the states of Gujarat, West Bengal, Rajasthan, Maharashtra, Madhya Pradesh, etc. Further, it exports its products to countries such as UAE, China, Thailand, Indonesia, Iraq, Iran, Poland, Kosovo, Lebanon, and others. On the concern side, its operations are subject to high working capital requirements. If it is unable to generate sufficient cash flows to allow it to make required payments, there may be an adverse effect on its results of operations. Further, it operates in an industry with several competitors and it may fail to compete successfully against existing or new competitors, which may reduce the demand for its products and services which may lead to reduced prices, operating margins, profits and further result in loss of market share across product categories.
The company is coming out with an IPO of 29,76,000 equity shares of face value of Rs 10 each for cash at a fixed price of Rs 80 per equity share to mobilize Rs 23.81 crore. On performance front, the total revenue, comprising both revenue from operations and other income, has risen to Rs 36,632.27 lakh in FY 2024-25, up from Rs 30,043.42 lakh in FY 2023-24. This represents an increase of 21.93% for the said period, mainly driven by a growth in domestic revenue from the company’s operations. The restated Profit after Tax for FY 2024-25 increased to Rs 649.53 lakh as against Rs 394.64 lakh in the FY 2023-24.
Going forward, its primary business strategy centers on driving growth through an increase in sales volume. By expanding its market reach and enhancing its distribution channels, it aims to bring its products to a wider audience, thereby boosting its presence and visibility. It is focused on scaling up production capacity to meet rising demand, all while maintaining high standards of quality and customer satisfaction. Through targeted marketing efforts, strategic partnerships, and a commitment to consistent product quality, it seeks to build lasting relationships with clients and encourage repeat business, creating a solid foundation for sustainable growth.
