New Delhi, October 3 (Udaipur Kiran News): Shares of Gujarat Peanuts and Agriculture Products Limited had a disappointing debut on the stock market today, listing at a 20% discount on the BSE SME platform. Despite hitting the upper circuit later in the day, IPO investors incurred losses on the first day of trading.
The stock was issued at ₹80 per share under the IPO but listed at ₹64, significantly below its issue price. Post listing, the stock slipped further to ₹61.10 due to heavy selling pressure before rebounding to hit the upper circuit of ₹67.20, where it eventually closed. Even at this level, investors faced a 16% notional loss compared to the IPO price.
The company’s ₹23.81 crore IPO was open for subscription between September 25 and 29 and was 7.95 times subscribed overall. The Non-Institutional Investors (NII) category was subscribed 7.87 times, while the retail portion saw 7.53 times subscription. The issue comprised 29,76,000 new equity shares of ₹10 face value.
Funds raised through the IPO will be utilized to meet working capital requirements and for general corporate purposes.
According to the company’s prospectus, Gujarat Peanuts has shown consistent growth in profitability and revenue. The firm reported a net profit of ₹82 lakh in FY 2022-23, which surged to ₹3.95 crore in FY 2023-24 and further to ₹6.50 crore in FY 2024-25. Revenue has grown at a CAGR of over 22%, reaching ₹366.32 crore.
However, the company’s debt levels have fluctuated. Total borrowings stood at ₹16.72 crore in FY23, rising to ₹44.34 crore in FY24 before reducing to ₹38.89 crore in FY25. Meanwhile, reserves and surplus improved from ₹4.75 crore in FY23 to ₹12.02 crore in FY25 after a temporary dip.
Despite strong financials, the stock’s weak listing has raised investor concerns about market sentiment towards SME IPOs.
Bhupendra Singh Chundawat is a seasoned technology journalist with over 22 years of experience in the media industry. He specializes in covering the global technology landscape, with a deep focus on manufacturing trends and the geopolitical impact on tech companies. Currently serving as the Editor at Udaipur Kiran, his insights are shaped by decades of hands-on reporting and editorial leadership in the fast-evolving world of technology.
