Unisem Agritech Limited Makes Flat Debut at Par with Issue Price, Lists at ₹65.00 Against Weak Subscription

Unisem Agritech Limited, founded in 2016 specializing in development, processing, and sale of seeds for vegetables, flowers, and field crops employing conventional breeding techniques to produce hybrid seeds offering increased yields, superior quality, and enhanced pest and disease resistance working with seed growers under agreements monitoring fields through strict quality checks processing at Ranebennur facility supplying to dealers across Madhya Pradesh, Uttar Pradesh, Telangana, Odisha, Andhra Pradesh, and Karnataka, made a flat debut on BSE SME on December 17, 2025. After closing its IPO bidding between December 10-12, 2025, the company commenced trading at par opening at ₹65.00 and touched ₹66.00 (up 1.54%).

Unisem Agritech Limited Listing Details

Unisem Agritech launched its IPO at ₹65 per share with minimum investment of 4,000 shares costing ₹2,60,000. The IPO received weak response with subscription of 2.03 times - individual investors at 2.28 times, QIB at 1.79 times, NII at 1.78 times.

First-Day Trading Performance

Listing Price: Unisem Agritech opened at ₹65.00 representing flat listing at par with issue price, touched high of ₹66.00 (up 1.54%) and low of ₹61.75 (down 5.00% hitting lower circuit), with VWAP at ₹64.47.

Growth Drivers and Challenges

Growth Drivers:

Strong Growth Trajectory: Revenue increased 13% and PAT surged 98% between FY24 and FY25, exceptional ROE of 57.30%, robust ROCE of 38.89%, RoNW of 44.54% demonstrating improving profitability and operational efficiency.

Comprehensive Product Portfolio: Wide range of seeds and variants across vegetables, flowers, and field crops, hybrid seeds designed to suit different agro-climatic conditions including water availability, soil type, and crop duration, integrated seed processing unit with warehouse facility at Ranebennur.

Operational Capabilities: Strong research and development capabilities with R&D team of breeders continuously working on innovation, experienced promoter and management expertise with 20+ years combined experience, diversified locations across Madhya Pradesh, Uttar Pradesh, Telangana, Odisha, Andhra Pradesh, and Karnataka, experienced team of individuals managing operations.

Challenges:

Weak Market Reception: Flat listing at par followed by quick decline to lower circuit at ₹61.75 (down 5.00%).

Operational Risks: High debt-to-equity of 1.24, total borrowings increased from ₹11.90 crore in FY25 to ₹25.44 crore in H1-FY26 representing significant leverage increase, ₹5.75 crore of IPO proceeds for debt repayment, thin PAT margin of 6.19% and EBITDA margin of 10.28%.

Utilisation of IPO Proceeds

Working Capital: ₹11.06 crore for meeting working capital requirements supporting inventory management, seed production, and business operations across multiple states.

Debt Repayment: ₹5.75 crore for repayment of banking facilities strengthening balance sheet and reducing interest burden though debt increased significantly in H1-FY26.

General Corporate Purposes: Remaining proceeds allocated for general corporate purposes supporting operational needs and strategic initiatives to maintain competitive positioning in hybrid seed market.

Financial Performance

Revenue: ₹69.08 crore for FY25, growth of 13% from ₹61.16 crore in FY24, reflecting expanding sales of hybrid seeds for vegetables, flowers, and field crops across Madhya Pradesh, Uttar Pradesh, Telangana, Odisha, Andhra Pradesh, and Karnataka.

Net Profit: ₹4.27 crore in FY25, impressive growth of 98% from ₹2.15 crore in FY24, demonstrating strong operational leverage and margin expansion though sustainability questioned given thin margins and increased debt levels.

Financial Metrics: Exceptional ROE of 57.30%, robust ROCE of 38.89%, high debt-to-equity of 1.24, RoNW of 44.54%, thin PAT margin of 6.19%, EBITDA margin of 10.28%, price-to-book of 5.44x, post-issue EPS of ₹6.17, P/E of 10.54x, net worth of ₹9.60 crore, total borrowings of ₹11.90 crore increasing to ₹25.44 crore in H1-FY26, and market capitalisation of ₹69.98 crore.