Gujarat Peanut Makes Weak Debut with 17.50% Discount, Lists at ₹66.00 Against Solid Subscription

Gujarat Peanut and Agri Products Limited, the peanut processor and exporter specialising in cleaning, grading, and marketing of agricultural commodities, made a disappointing debut on BSE SME on October 3, 2025. After closing its IPO bidding between September 25-29, 2025, the company commenced trading with a 20.00% discount, opening at ₹64 but recovered slightly to ₹66.00 with losses of 17.50%.

Gujarat Peanut Listing Details

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Gujarat Peanut and Agri Products Limited launched its IPO at ₹80 per share with a minimum investment of 3,200 shares costing ₹2,56,000. The IPO received a solid response with a subscription of 7.95 times - individual investors at 7.53 times and NII at 7.87 times.

First-Day Trading Performance Outlook

• Listing Price: Gujarat Peanut share price opened at ₹64, representing a discount of 20.00% from the issue price of ₹80, and recovered to ₹66.00, delivering losses of 17.50% for investors, reflecting negative market sentiment toward the agricultural commodity sector.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio: Comprehensive range including peanuts, sesame seeds, spices, grains, pulses, and raw cotton with operations encompassing cleaning, grading, processing, sorting, and marketing serving domestic and international markets.
• Integrated Manufacturing Infrastructure: Manufacturing facility in Rajkot, Gujarat, across 6,373.80 square meters with an extensive network of buyers across various countries and continents, quality accreditations, and a location advantage in an agricultural hub.
• Strong Financial Growth: Impressive PAT growth of 65% to ₹6.50 crore and revenue growth of 22% to ₹366.32 crore in FY25, exceptional ROE of 33.65%, and outstanding ROCE of 62.69% demonstrating operational efficiency.

Challenges:

• Extremely Thin Margins: Very low PAT margin of 1.79% and modest EBITDA margin of 2.63% indicating minimal pricing power in the highly competitive and fragmented agricultural commodity processing segment with significant margin pressure risks.
• High Financial Leverage: Alarming debt-to-equity ratio of 2.02, indicating substantial financial leverage requiring careful debt management in working capital-intensive commodity trading operations with vulnerability to commodity price volatility.

Utilisation of IPO Proceeds

• Capital Expenditure: ₹12.23 crore for the purchase of additional plant and machinery, enhancing processing capacity and operational efficiency in the peanut and agricultural commodity processing business.
• Working Capital Requirements: ₹6.86 crore for meeting working capital requirements supporting inventory management, procurement operations, and business expansion across agricultural commodity trading.
• General Corporate Purposes: ₹2.00 crore supporting business operations, strategic initiatives, and expansion activities

Financial Performance of Gujarat Peanut

• Revenue: ₹366.32 crore for FY25, showing solid growth of 22% from ₹300.43 crore in FY24, reflecting strong market demand and successful business scaling in peanut and agricultural commodity processing.
• Net Profit: ₹6.50 crore in FY25, representing an impressive growth of 65% from ₹3.95 crore in FY24, indicating operational leverage benefits despite extremely thin margins in the commodity trading business.
• Financial Metrics: Exceptional ROE of 33.65%, outstanding ROCE of 62.69%, elevated debt-to-equity ratio of 2.02, very low PAT margin of 1.79%, modest EBITDA margin of 2.63%, and estimated market capitalisation of ₹67.73 crore.