Rukmani Devi Garg Agro Impex
- Rukmani Devi Garg Agro Impex is coming out with an initial public offering (IPO) of 23,76,000 equity shares in a price band of Rs 93-99 per equity share.
- The issue will open on September 26, 2025 and will close on September 30, 2025.
- The shares will be listed on SME Platform of BSE.
- The face value of the share is Rs 10 and is priced 9.3 times of its face value on the lower side and 9.9 times on the higher side.
- Book running lead manager to the issue is Fedex Securities.
- Compliance Officer for the issue is Ayushi Agrawal.
Profile of the company
Incorporated in 1998, the company carries on the business of agricultural produce aggregator. As an agricultural produce aggregator, it consolidates agriculture produce namely, wheat, mustard, coriander, maize, flax seeds, soyabean from the vast network of small and fragmented farmers. It grades these produces based on quality and sell in bulk (raw) to its diversified customer base which includes, corporates, flour mills, solvent-extraction plant/ oil mills, export or agriculture-processors across India.
It sells processed wheat under its brand ‘Sharbati’, ‘Happyfamily’, and ‘Taj Mahal’ through its network of distributors and dealers across, Rajasthan, Uttar Pradesh, Maharashtra, Haryana, Punjab, Delhi and Chandigarh (Branded sales). Further, it also sells the low-quality processed wheat in bulk (Mill quality). Its primary agricultural produce is wheat, mustard, coriander, maize, flax seeds, soyabean, which it procures from over a large number of farmers through a network of kaccha aadtiya (agents) spread across the state of Rajasthan and Madhya Pradesh. Further, as on March 31, 2025, its network comprises of over 500 kaccha aadtiya/ agents who liaison and coordinate between the company and the farmers community.
It procures this agricultural produce during harvest period grade and stores them raw and in case of wheat it also stores processed wheat i.e. after grading, sorting and packaging at its storage facilities situated at its processing unit, owned warehouse and also in warehouses taken on lease basis. It sells raw agri commodity agricultural produce such as raw wheat, mustard, coriander, maize, flax seeds, soyabean and, trade in and agri products such as mustard oil, soyabean oil, mustard de-oiled cakes, etc. in bulk to its diversified customer base which includes, corporates, flour mills, solvent-extraction plant/ oil mills, export or agriculture-processors across India.
Proceed is being used for:
- Funding working capital requirements
- General corporate purpose
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. Thus, farmers become an integral part of the sector to provide with a means of sustenance. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food processing industry accounts for 32% of the country’s total food market.
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. As per the First Advance Estimates 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 total Kharif foodgrain production for 2024-25, according to the First Advance Estimates, is projected at 1647.05 lakh Metric Tonnes (LMT), marking an increase of 89.37 LMT from the previous year and 124.59 LMT above the average Kharif foodgrain production.
India’s seaweed farming sector, currently valued at Rs 200 crore ($23.02 million) is projected to grow to Rs 3,277 crore ($377.19 million) over the next decade, potentially benefiting 1.6 million people, according to a report by Primus Partners. Indian consumers are rapidly changing their eating habits. Trends indicate a sharp increase in on-the go eating, snacking in between meals, switching to healthier eating alternatives, pre-cooked ready to eat meals and increasing consumption of organic foods. This has led to a host of new opportunities in the consumer foods market for both domestic and international companies to build a stake in this fast-growing processed food market.
Pros and strengths
Large scale procurement: It has an extensive procurement network comprising of over a large number of farmers which are connected to it directly and also through agents spread across the state of Rajasthan and Madhya Pradesh. Further, as on March 31, 2025, its network comprises of over 500 kaccha aadtiya/ agents who liaison and coordinate between the company and the farmers community. Its procurement model and relationships with farmers, aggregators and other vendors, through its continued engagement, enables it to procure adequate supplies of quality agricultural produce at competitive prices. Its top 10 suppliers contribute 33.45 %, 6.43% and 7.96% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively of its total purchases and its top 5 suppliers contributes 27.46%, 4.35% and 7.13% for the Fiscal 2025, Fiscal 2024 and Fiscal 2023, respectively of its total purchases.
Long-standing relationship with customers from diverse industry: It has a well-diversified customer base across varied end-use industries such as, corporates, flour mills, oil mills/ solvent extraction plant, export or agriculture-processors across India. Further, it also sells its processed wheat through a network of distributors and dealers across India. Its dealers & distribution network is aided by its in-house sales and marketing team which liaise with its customers on a regular basis for customer inputs, market demands as well as positioning of its products vis-a-vis products of its competitors.
Consistent focus on quality: Its focus on quality is maintained across the entire process chain, including sourcing, processing, packaging and distribution. Its processing unit possesses necessary quality certifications and approvals such as, ISO 45001:2018, HACCP, ISO 9001:2015 and ISO 22000:2018. Its commitment to stringent quality control has been critical to its success and has contributed to customers associating its brand with trust and transparency. It has long term relations with its suppliers which help it to procure quality raw materials at competitive rates.
Risks and concerns
Dependent upon few customers: The substantial portion of its revenues has been dependent upon few customers. For the Fiscal 2025, Fiscal 2024 and Fiscal 2023, its top ten customers accounted for around 59.34%, 68.50% and 57.68% of its revenue from operations. It has not entered into long term agreements with its customers and the success of its business is accordingly significantly dependent on it maintaining good relationships with them. The loss of one or more of these significant customers or a reduction in the amount of business it obtains from them could have an adverse effect on its business, results of operations, financial condition and cash flows.
Rely on third-party transportation providers: As it engages in trading of agri commodities in bulk and also in consumable packages, its success is contingent upon the uninterrupted supply and transportation of materials from its suppliers to the company and from the company to its clients. These processes are subject to various uncertainties and risks. Any failure by these service providers to fulfill their obligations whether due to logistical issues, labor strikes, vehicle breakdowns, or other unforeseen disruptions can lead to significant delays in the receipt of raw materials and the delivery of finished products. Such delays can halt production processes, leading to unmet client orders and potential loss of contracts, which in turn affects its revenue and market reputation. A failure to ensure a consistent and reliable supply of materials to both itself and its clients could materially and adversely affect its business, financial condition, and results of operations.
Geographical concentration: It also procures its raw materials primarily from the farmers in the state of Rajasthan and Madhya Pradesh. Due to the geographical concentration of its processing operations primarily in the state of Rajasthan, its operations are susceptible to local, regional and environmental factors, such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic and population changes, and other unforeseen events and circumstances. Such disruptions could result in the damage or destruction of a significant portion of its manufacturing abilities, significant delays in the transport of its products and raw materials, loss of key managerial personnel, and/or otherwise adversity may affect its business, financial condition and results of operations.
Outlook
The company is primarily engaged in processing and trading agricultural commodities. It deals with a variety of agricultural products and provides value-added processing. It sells processed wheat under its brand ‘Sharbati’, ‘Happyfamily’, and ‘Taj Mahal’ through its network of distributors and dealers across, Rajasthan, Uttar Pradesh, Maharashtra, Haryana, Punjab, Delhi and Chandigarh (Branded sales). On the concern side, it operates in a competitive business environment and its inability to compete effectively may adversely affect its business, results of operations, financial condition and cash flows. Further, its business is subject to seasonal volatility, which may contribute to fluctuations in its results of operations and financial condition.
The company is coming out with a maiden IPO of 23,76,000 equity shares of Rs 10 each. The issue has been offered in a price band of Rs 93-99 per equity share. The aggregate size of the offer is around Rs 22.10 crore to Rs 23.52 crore based on lower and upper price band respectively. On performance front, the company’s total income increased by 33.59% from Rs 24,502.45 lakh for the Financial Year 2024 to Rs 32,732.30 lakh for the Financial Year 2025 primarily due to increase in revenue from operations by 33.81%. It recorded an increase of 50.92% in its profit for the year from Rs 501.62 lakh in Fiscal 2024 to Rs 757.05 lakh in Fiscal 2025.
Going forwards, the company intends to strengthen its sourcing capability by identifying new and more efficient suppliers to reduce costs, increase speed of delivery and reduce lead times, including by identifying large farmers and also by undertaking contract farming. Its primary products are raw wheat, mustard, coriander, maize, flax seeds, soyabean, which it procures from over a large number of farmers through a network of kaccha aadtiya (agents) spread across the state of Rajasthan and Madhya Pradesh. The company would endeavor to increase its network of agents so that it can deal with a larger number of farmer community.
