Gajanand International SME IPO Review: ₹21 Cr Agro Issue, Cotton Ginning Economics & Valuation
Gujarat-based cotton ginning and agro-trading company Gajanand International is launching its ₹21 Crore SME IPO. Complete breakdown of commodity processing margins, raw material price sensitivity, and valuation.
This analysis reviews the official Red Herring Prospectus (RHP), historical peer valuations, current exchange subscription trends, and grey market premium indicators. All figures are verified against official BSE, NSE, and SEBI regulatory filings.
Agro-processing firm Gajanand International Limited is hitting the primary market with its ₹20.65 Crore SME Initial Public Offering on NSE Emerge.
1. Issue Overview & Details
| Parameter | Issue Details |
|---|---|
| Issue Price | ₹36 per equity share |
| Lot Size | 3,000 Shares |
| Minimum Retail Application | ₹1,08,000 (1 Lot) |
| Issue Size | ₹20.65 Crore (100% Fresh Issue) |
| Use of Proceeds | Working capital financing for raw cotton procurement |
| Listing Platform | NSE Emerge (SME) |
2. Business Profile & Margin Structure
- Core Operations: Modern ginning and pressing units converting raw seed cotton into export-grade cotton bales.
- Financial Profile: Thin operating margins (5–6% EBITDA) characteristic of agricultural commodity processing, compensated by high asset turnover.
- Valuation: Post-issue P/E works out to ~14.2x FY26 earnings.
3. Verdict
Gajanand International is a standard agricultural processing commodity business with thin margins and high monsoon dependency. Verdict: Neutral / Speculative Listing Play for Experienced SME Traders.
Disclaimer: Educational review only. SME issues carry higher risk.
Authored by IPOSathi Research
Harshit is the Lead Primary Market Analyst at IPOSathi, tracking Indian initial public offerings, SME platforms, grey market movements, and corporate actions. All research is conducted independently with zero promoter compensation.
Frequently Asked Questions
What is the issue price for Gajanand International SME IPO?+
The issue is priced at ₹36 per equity share with a fixed price lot size of 3,000 shares (₹1,08,000 minimum retail investment).
What does Gajanand International do?+
The company processes raw seed cotton into premium Shankar-6 contamination-free cotton bales and cotton seeds in Saurashtra, Gujarat.
What are the financials of Gajanand International?+
FY26 Revenue reached ₹82 Crore with PAT of ₹3.2 Crore and Net Profit Margin of ~3.9%.
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