Mother Nutri Foods Limited Makes Modest Debut with 1.20% Premium, Lists at ₹118.40 Against Strong Subscription

Mother Nutri Foods Limited, a business-to-business peanut butter manufacturer offering over 10 flavours and 5 variants marketed under Spread & Eat brand serving international markets including Libya, Dubai, and Japan with private labelling for domestic and international clients across hypermarkets, supermarkets, and retail chains in over 20 countries including UK, Canada, South Africa, Russia, Spain, UAE, and USA, made a modest debut on BSE SME on December 3, 2025. After closing its IPO bidding between November 26-28, 2025, the company commenced trading with a premium of 1.20% opening at ₹118.40 and touched ₹124.30 (up 6.24%).

Mother Nutri Foods Limited Listing Details

Mother Nutri Foods launched its IPO at ₹117 per share with minimum investment of 2,400 shares costing ₹2,80,800. The IPO received strong response with subscription of 15.92 times - individual investors at 11.31 times, QIB at 10.10 times, NII at 34.41 times (sNII at 16.74 times and bNII at 43.34 times), indicating solid investor confidence in peanut butter manufacturing business model and export capabilities.

First-Day Trading Performance

Listing Price: Mother Nutri Foods opened at ₹118.40 representing premium of 1.20% from issue price of ₹117.00, touched high of ₹124.30 (up 6.24%) and low of ₹118.40 (up 1.20%), with VWAP at ₹120.04, reflecting cautious market sentiment with modest listing gains despite strong subscription, indicating concerns about valuation and earnings sustainability.

Growth Drivers and Challenges

Growth Drivers:

Export-Led Growth Model: Private labelling business across over 20 countries accounting for approximately 97% of revenue with 68% domestic and 32% international sales.

Strong Financial Metrics: Revenue increased 12% and PAT rose 35% between FY24 and FY25, exceptional ROE of 36.64%, solid ROCE of 20.63%, RoNW of 26%, PAT margin of 7.17%, EBITDA margin of 11.32% demonstrating operational efficiency.

Market Positioning: Over 10 flavours and 5 variants of peanut butter manufactured at single facility in Mahuva, business-to-business model serving hypermarkets, supermarkets, and retail chain.

Challenges:

High Private Label Dependence: Over 97% revenue from private labelling creating vulnerability to client concentration risk, limited brand recognition for own Spread & Eat brand restricting pricing power and margin expansion opportunities.

Modest Listing Performance: Opening premium of just 1.20% despite strong subscription of 15.92 times indicating cautious market assessment, significant promoter dilution from 90.98% to 65.93%, single manufacturing facility creating operational concentration risk, incorporated only in 2022 with limited operating history.

Utilisation of IPO Proceeds

Manufacturing Expansion: ₹23.19 crore for setting up new manufacturing facility at Mahuva, Bhavnagar in Gujarat, expanding production capacity to meet growing demand from domestic and international private label customers across multiple geographies.

General Corporate Purposes: ₹5.94 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives to maintain competitive positioning in peanut butter manufacturing and private labelling business.

Financial Performance

Revenue: ₹90.48 crore for FY25, growth of 12% from ₹81.05 crore in FY24, reflecting expanding private label customer base across domestic and international markets and growing adoption of peanut butter products across hypermarkets and retail chains.

Net Profit: ₹6.47 crore in FY25, growth of 35% from ₹4.77 crore in FY24, demonstrating operational leverage and improving profitability though sudden surge from ₹1.13 crore in FY23 raising questions about sustainability.

Financial Metrics: Exceptional ROE of 36.64%, solid ROCE of 20.63%, RoNW of 26%, PAT margin of 7.17%, EBITDA margin of 11.32%, price-to-book of 2.30x, post-issue EPS of ₹8.48, P/E of 13.80x, net worth of ₹24.89 crore, total borrowings of ₹22.81 crore, and market capitalisation of ₹155.81 crore.