Mahamaya Lifesciences IPO Makes Modest Debut with 2.63% Premium, Lists at ₹117.00 Against Weak Subscription

Mahamaya Lifesciences Limited, a crop protection products manufacturer incorporated in 2002 engaged in manufacturing, registration, and export of finest crop protection products and bioproducts for crop and soil health management helping farming community for productivity, specialising in manufacturing pesticide formulations and supplying bulk products to Indian agrochemical companies and multinational corporations, importing carefully researched molecules registered with Central Insecticides Board marketing as technical and value-added formulations. The company made a modest debut on BSE SME on November 18, 2025; after closing its IPO bidding between November 11-13, 2025, the company commenced trading with premium of 1.75% opening at ₹116.00 and rose to ₹117.00 with gains of 2.63%.

Mahamaya Lifesciences Limited Listing Details

Mahamaya Lifesciences IPO launched at ₹114 per share with minimum investment of 2,400 shares costing ₹2,73,600. The IPO received weak response with subscription of only 1.63 times - retail at marginal 1.02 times barely covered, QIB at weak 1.19 times, and NII at moderate 3.63 times.

First-Day Trading Performance

Listing Price: Mahamaya Lifesciences opened at ₹116.00 representing premium of 1.75% from issue price of ₹114.00, rose to ₹117.00 (up 2.63%) touching intraday high of ₹121.80 (up 6.84%) and low of ₹115.50 (up 1.32%), with VWAP at ₹116.38, delivering modest gains of ₹3.00 per share reflecting cautious market sentiment towards agrochemical sector despite strong financial growth and diversified product portfolio.

Growth Drivers and Challenges

Growth Drivers:

• Diversified Product Portfolio and Global Presence: Comprehensive range including bulk formulations (Acetamiprid, Buprofezin, Emamectin benzoate, Imidacloprid, Paraquat Dichloride), technical sales (Acetamiprid 99%, Atrazine 95%, Imidacloprid 95%, Emamectin Benzoate 95%), branded products (MAYAMRIT GR, MAYAMRIT SL, MAYAGIBB, UCHIT EW 370).
• Strong Registration and Market Development: Imports carefully researched molecules, registers with Central Insecticides Board, invested in global product registrations, capability to introduce vital products for Indian agriculture and other associated industries.
• Exceptional Financial Growth: Revenue increased impressive 64% and PAT surged exceptional 148% between FY24 and FY25, exceptional ROE of 34.94%, solid ROCE of 23.15%, RoNW of 26.19%, moderate PAT margin of 4.84%, EBITDA margin of 9.22% demonstrating improving operational efficiency in crop protection segment.

Challenges

• High Debt and Valuation Metrics: Elevated debt-to-equity of 1.08, total borrowings of ₹57.72 crore as of June 2025 against net worth of ₹53.50 crore raising financial stability concerns, post-issue P/E of 16.25x and price-to-book of 9.40x.
• Competition and Execution Risks: Operating in highly competitive and fragmented agrochemical and pesticide formulations segment with numerous established players and MNCs, significant promoter dilution from 77.27% to 56.35% raising concerns about stake reduction timing, dependence on import of molecules and regulatory approvals for registrations creating operational dependencies.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹3.75 crore for purchase of equipment for existing formulation plant, ₹29.42 crore for funding capital expenditure towards setting up new technical manufacturing plant expanding capabilities, ₹2.53 crore for construction of warehouse building and purchase of machinery.

Working Capital: ₹18.00 crore funding working capital requirement supporting inventory management and operational cash flows in crop protection business, plus ₹8.26 crore for general corporate purposes. Additionally, ₹6.16 crore through offer for sale by promoters.

Financial Performance

• Revenue: ₹267.17 crore for FY25, impressive growth of 64% from ₹162.83 crore in FY24, reflecting expanding pesticide formulations and crop protection products operations.
• Net Profit: ₹12.94 crore in FY25, exceptional growth of 148% from ₹5.22 crore in FY24, though sustainability remains concern.
• Financial Metrics: Exceptional ROE of 34.94%, solid ROCE of 23.15%, elevated debt-to-equity of 1.08, RoNW of 26.19%, moderate PAT margin of 4.84%, EBITDA margin of 9.22%, price-to-book of 9.40x, post-issue EPS of ₹7.01, P/E of 16.25x, and market capitalisation of ₹273.84 crore.