In a positive development for the primary market, shares of Pajson Agro India made their stock market debut at a premium on Thursday, December 18. The listing defied the overall weak sentiment prevailing in the broader equity markets at the time.
Strong Listing Performance on BSE SME
The Pajson Agro India share price commenced trading at ₹124 on the BSE SME platform. This represented a healthy premium of ₹6 or 5.08% over its initial public offering (IPO) issue price of ₹118 per share. This listing gain was in line with the indications from the unofficial grey market, where the IPO's grey market premium (GMP) was also hovering around ₹6 ahead of the listing day.
Robust Investor Demand for the IPO
The public offer from the cashew processor witnessed decent demand from investors across categories. The IPO, which was open for subscription from December 11 to December 15, was subscribed 6.50 times overall. It received applications for 2,71,70,400 shares against the total issue size of 41,79,600 shares.
The breakdown of subscription reveals strong institutional interest:
- The Qualified Institutional Buyer (QIB) segment was subscribed the most, receiving bids 10.92 times the allotted quota.
- The Non-Institutional Investor (NII) portion was booked 6.86 times.
- The retail investor category saw a subscription of 3.85 times.
The allotment was finalised on December 16. The credit of shares to successful allottees and the initiation of refunds for unsuccessful applicants were both completed on December 17.
IPO Details and Use of Proceeds
The Pajson Agro India IPO was a fresh issue worth ₹74.45 crore, involving the sale of 63 lakh (0.63 crore) shares. The price band for the offer was set between ₹112 to ₹118 per share. Investors had to apply in a minimum lot size of 1200 shares, which meant the minimum investment amount for retail investors was ₹2,83,200 at the upper end of the price band.
The company plans to utilize the net proceeds from the IPO for key objectives. A significant portion is earmarked for setting up a second cashew processing facility in Vizianagaram, Andhra Pradesh. The remaining funds will be used for general corporate purposes to support business growth.
About Pajson Agro India
Incorporated in 2021, Pajson Agro India is primarily engaged in processing raw cashew nuts into high-quality cashew kernels. The company supplies its products to both domestic and international markets. Its business model includes bulk sales as well as retail packaging under its own white-label brand, Royal Mewa, in the dry fruits segment.
Beyond cashew kernels, the company also markets by-products from the processing, such as cashew husk and shells. These by-products find applications in various industrial and agricultural sectors, adding to the company's revenue streams.
Disclaimer: This news article is for informational purposes only. Readers are advised to consult with certified financial experts before making any investment decisions, as market conditions are subject to change.
