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Gurunanak Agriculture India Limited is set to launch its initial public offering (IPO) from September 24 to September 26, 2025, offering investors a fresh opportunity in the agricultural machinery manufacturing sector. With a fixed price band of Rs 75 per share, the IPO aims to raise approximately Rs 28.8 crore by issuing 38.4 lakh shares on the NSE SME platform. Here is a comprehensive newsletter detailing the IPO’s fundamentals, pricing, financials, and market expectations.
Key Takeaways From The Gurunanak Agriculture IPO
The IPO price is fixed at Rs 75 per equity share with a face value of Rs 10.
The issue size totals 38.4 lakh shares aggregating up to Rs 28.8 crore, entirely constituted of fresh issuance.
The minimum bid lot size is 1600 shares, amounting to Rs 1.2 lakh, with retail investors entitled to 47.5% allocation and high net worth individuals another 47.5%.
The company is scheduled to get listed on the NSE SME segment, with the tentative listing date set for October 1, 2025.
Grey Market Premium (GMP) as of late September 2025 is reported around Rs 0, indicating the issue price is expected to be the listing price.
Gurunanak Agriculture reported consistent revenue figures of approximately Rs 44 crore in FY24 and FY25 with notable growth in profit after tax (PAT) from Rs 2.45 crore to Rs 6.06 crore.
Company Overview And Business Model
Incorporated in February 2010, Gurunanak Agriculture specializes in manufacturing agricultural machinery like threshers, harvesters, reapers, and rotavators. The company has established a solid distribution network both within India and across international markets, actively participating in industry trade fairs to expand market presence.
Financial Performance And Highlights
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Revenue remained steady at Rs 44 crore in FY24 and Rs 43.86 crore in FY25, showcasing operational stability.
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Profit after tax surged impressively by 147% from Rs 2.45 crore in FY24 to Rs 6.06 crore in FY25.
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EBITDA witnessed growth, reflecting improving profitability and cost management.
The company maintains a solid net worth position and manageable debt levels, underscoring financial health suitable for growth initiatives.
IPO Price Band, Lot Size, And Listing Details
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The issue is priced at Rs 75 per share with a minimum application lot of 1600 shares (total Rs 1.2 lakh).
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47.5% shares are reserved for retail investors, with an equal portion dedicated to high net worth individuals (HNIs).
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The IPO opens on September 24, 2025, and closes on September 26, 2025.
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Allotment is expected by September 29, with refunds and credit of shares to Demat accounts slated for September 30.
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The shares will be listed on the NSE SME platform on October 1, 2025.
Grey Market Premium And Market Sentiment
The IPO’s Grey Market Premium (GMP), representing investor demand and expected listing gains, currently hovers around Rs 0. This signals balanced demand and supply dynamics at issue price, aligning with market expectations for a steady listing.
Investment Considerations And Risks
Investors should note the IPO’s relatively modest size and SME segment listing, implying moderate liquidity initially.
The company’s steady revenue with growing profits is positive, though the agricultural machinery sector’s cyclicality and competition present challenges.
Evaluating the fundamentals and future growth prospects alongside peer comparisons is vital before applying.
Conclusion
Gurunanak Agriculture Ltd’s IPO presents a unique opportunity to participate in the growing agritech manufacturing sector with a stable company demonstrating profit growth and operational consistency. The fixed pricing and zero premium GMP suggest a fair valuation, making it attractive for investors focused on the SME space and agri-machinery domain.
Sources: Economic Times, IPO Watch, InvestorGain, Moneycontrol, NSE India
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