Stanbik Agro Limited Makes Strong Debut with 5.83% Premium, Lists at ₹31.75 Against Weak Subscription

Stanbik Agro Limited, incorporated in 2021 engaged in manufacturing, wholesaling, and supply of agricultural commodities focusing on delivering fresh fruits and vegetables from farm to table emphasizing sustainable farming practices operating across three business verticals including contract farming engaging with farmers to cultivate sesame, cumin, and cotton, modern retailing providing farm-fresh produce directly to consumers, and business-to-business supply serving wholesalers, traders, and bulk buyers through e-commerce platforms connecting farmers with retail and institutional buyers, made a strong debut on BSE SME on December 19, 2025. After closing its IPO bidding between December 12-16, 2025, the company commenced trading with a premium of 5.83% opening at ₹31.75 and hit upper circuit at ₹33.33 (up 11.10%).

Stanbik Agro Limited Listing Details

Stanbik Agro launched its IPO at ₹30 per share with minimum investment of 8,000 shares costing ₹2,40,000. The IPO received weak response with subscription of 1.49 times - individual investors at 1.70 times, NII at 1.27 times.

First-Day Trading Performance

Listing Price: Stanbik Agro opened at ₹31.75 representing premium of 5.83% from issue price of ₹30.00, quickly hit upper circuit at ₹33.33 (up 11.10%), with VWAP at ₹32.73, reflecting positive market sentiment with strong listing gains hitting upper circuit despite weak subscription of 1.49 times and analyst caution about sustainability.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 98% and PAT surged 102% between FY24 and FY25, ROE of 22.33%, ROCE of 27.02%, RoNW of 22.33%, PAT margin of 7.12%, EBITDA margin of 8.73%, minimal debt-to-equity of 0.02 demonstrating operational efficiency.

Integrated Business Model: Three-pronged approach through contract farming, modern retailing, and business-to-business supply creating diversified revenue streams, connects farmers with both retail and institutional buyers ensuring efficient distribution, sustainable farming practices focus.

Valuation Appeal: Issue appears lucratively priced according to analyst based on recent financial data with pre-issue P/E of 5.90x and post-issue P/E of 8.98x, price-to-book of 1.65x appearing reasonable, minimal debt leverage.

Challenges:

Limited Scale: Just 16 employees indicating very small operations, incorporated only in 2021 providing limited operating history of 4 years, operating in highly competitive and fragmented agricultural commodities segment.

Operational Risks: Weak subscription of 1.49 times reflecting investor skepticism, significant promoter dilution from 98.92% to 68.54%, vulnerable to agricultural commodity price volatility, weather conditions affecting crop yields, competitive pressures in contract farming and wholesaling, dependency on farmer relationships and retail distribution networks.

Utilisation of IPO Proceeds

Retail Expansion: ₹3.58 crore for expansion of retail network by launching new retail outlets. Infrastructure: ₹0.19 crore for brokerage charges, ₹0.37 crore for security deposits. Working Capital: ₹6.39 crore for meeting working capital requirements. General Corporate Purposes: ₹1.20 crore for operational needs.

Financial Performance

Revenue: ₹52.49 crore for FY25, growth of 98% from ₹26.55 crore in FY24. 

Net Profit: ₹3.74 crore in FY25, growth of 102% from ₹1.85 crore in FY24. 

Financial Metrics: ROE of 22.33%, minimal debt-to-equity of 0.02, PAT margin of 7.12%, EBITDA margin of 8.73%, post-issue EPS of ₹3.34, P/E of 8.98x, and market capitalisation of ₹44.41 crore.