Pajson Agro India Limited Makes Strong Debut with 5.08% Premium, Lists at ₹124.00 Against Solid Subscription

Pajson Agro India Limited, incorporated in 2021 engaged in processing raw cashew nuts into cashew kernels supplying to domestic and international markets selling in bulk and retail packs under white-label brand Royal Mewa while selling by-products including cashew husk and shells for industrial and agricultural use operating through wholesale mandis, institutional sales, exports, and business-to-consumer channels across 18 states, made a strong debut on BSE SME on December 18, 2025. After closing its IPO bidding between December 11-15, 2025, the company commenced trading with a premium of 5.08% opening at ₹124.00 and touched ₹129.85 (up 10.04%).

Pajson Agro India Limited Listing Details

Pajson Agro India launched its IPO at ₹118 per share with minimum investment of 2,400 shares costing ₹2,83,200. The IPO received solid response with subscription of 6.50 times - individual investors at 3.85 times, QIB at 10.92 times, NII at 6.86 times.

First-Day Trading Performance

Listing Price: Pajson Agro India opened at ₹124.00 representing premium of 5.08% from issue price of ₹118.00, touched high of ₹129.85 (up 10.04%) and low of ₹120.05 (up 1.74%), with VWAP at ₹123.97.

Growth Drivers and Challenges

Growth Drivers:

Exceptional Growth Trajectory: Revenue surged 95% and PAT jumped 509% between FY24 and FY25, exceptional ROE of 60.05%, robust ROCE of 48.21%, RoNW of 46.18%, healthy PAT margin of 10.90%, strong EBITDA margin of 16.16% demonstrating operational excellence.

Multi-Channel Distribution: Operating through four verticals including wholesale mandis, institutional sales to retail chains and food brands, exports, and business-to-consumer Royal Mewa brand, presence across 18 states and three union territories, diverse customer base, strong wholesaler network and customer loyalty, leveraging experience and network of promoters.

Challenges:

Financial Inconsistency: Analyst review highlights company marked inconsistency in top lines with revenue declining from ₹101.13 crore in FY23 to ₹96.04 crore in FY24 before surging to ₹187.28 crore in FY25.
Valuation Concerns: Issue appears fully priced according to analyst review, PAT growth of 509% from ₹3.35 crore to ₹20.42 crore appears exceptional but sustainability questioned given limited operating history since 2021 incorporation.

Operational Risks: High debt levels with borrowings increasing from zero in FY23 to ₹14.57 crore in FY24-FY25 to ₹40.04 crore in H1-FY26 representing significant leverage increase, debt-to-equity of 0.33 though increasing, significant promoter dilution from 85% to 62.47%.

Utilisation of IPO Proceeds

Capacity Expansion: ₹57.00 crore for capital expenditure towards establishment of second cashew processing facility at Vizianagaram doubling processing capacity and strengthening market position in Andhra Pradesh cashew belt.

General Corporate Purposes: ₹8.47 crore allocated for general corporate purposes supporting working capital requirements, operational needs, and strategic initiatives to maintain competitive positioning.

Financial Performance

Revenue: ₹187.28 crore for FY25, exceptional growth of 95% from ₹96.04 crore in FY24, reflecting expanding cashew processing operations and sales across wholesale mandis, institutional clients, exports, and Royal Mewa retail brand.

Net Profit: ₹20.42 crore in FY25, phenomenal growth of 509% from ₹3.35 crore in FY24, demonstrating dramatic improvement in profitability though analyst questions sustainability given inconsistent revenue pattern and boosted profits compared to industry standards.

Financial Metrics: Exceptional ROE of 60.05%, robust ROCE of 48.21%, debt-to-equity of 0.33 though increasing rapidly, RoNW of 46.18%, healthy PAT margin of 10.90%, strong EBITDA margin of 16.16%, price-to-book of 4.67x, post-issue EPS of ₹11.92, P/E of 9.90x, net worth of ₹44.21 crore, total borrowings of ₹14.57 crore increasing to ₹40.04 crore in H1-FY26, and market capitalisation of ₹308.93 crore representing strong listing premium of 5.08% with intraday high of 10.04%.