Gurunanak Agriculture SME IPO: A Guide to the Upcoming Farm Machinery IPO
Gurunanak Agriculture India Ltd SME IPO opens 24-26 September 2025 at ₹75 per share to raise ₹28.80 cr. With FY25 revenue ~₹43.85 cr, profit after tax ₹6.05 cr, strong margins and plan to set up a harvester unit, read full review, strengths & risks, peer comparison & expected listing gain.
Gurunanak Agriculture IPO: Detailed Analysis & Review
Gurunanak Agriculture India Limited is launching its Initial Public Offering (IPO) on the NSE Emerge platform, a significant event for the SME sector. This fixed-price issue is designed to raise capital for business expansion, particularly a new harvester manufacturing unit. Here’s a comprehensive breakdown of the IPO details, company background, financials, and an expert review.
Company Background
Incorporated in 2010, Gurunanak Agriculture India Limited (GNAIL) is a Chhattisgarh-based manufacturer of agricultural machinery. . The company’s product portfolio includes threshers, harvesters, rotavators, reapers, and cultivators. It has a presence across seven Indian states and also exports to countries like Nepal, Bhutan, and Sri Lanka. A key product that has recently gained significant traction is its combined harvester, known for its advanced features and cost-efficiency.
Gurunanak Agriculture SME IPO Details & Dates
| Detail | Information |
|---|---|
| Issue Type | SME IPO (Fixed Price) on NSE-Emerge. |
| Issue Size | ₹28.80 crore (Fresh issue) |
| Price per Share | ₹75 each (Face Value ₹10) |
| Lot Size | 1,600 shares per lot |
| Min Investment (Retail) | ~₹1,20,000 for a lot (given 1,600 × ₹75) |
| IPO Open / Close Dates | Opens 24 September 2025; Closes 26 September 2025 |
| Allotment / Refund / Credit Dates | Allotment: 29 Sep; Refunds / Credit: 30 Sep; Listing: 01 Oct 2025 |
The Gurunanak Agriculture IPO is a fixed-price issue of ₹28.80 crore. It’s an entirely fresh issue of 38.40 lakh equity shares. The funds raised will be used for setting up a new harvester manufacturing unit, meeting working capital needs, and for general corporate purposes.
- IPO Dates: The issue opens for subscription on September 24, 2025, and closes on September 26, 2025.
- Listing Date: The shares are tentatively scheduled to be listed on NSE SME on October 1, 2025.
- Issue Price: The price is fixed at ₹75 per share.
- Lot Size: The minimum bid lot is 1,600 shares, requiring a minimum investment of ₹1,20,000.
- Lead Manager: Finshore Management Services Ltd.
- Registrar: Cameo Corporate Services Ltd.
Financials (as of March 31, 2025)
The company has shown strong financial performance, especially in its profitability.
| Particulars (₹ Crores) | FY25 | FY24 | FY23 |
| Total Income | 43.95 | 44.09 | 39.17 |
| Profit After Tax (PAT) | 6.06 | 2.45 | 0.61 |
| Net Worth | 12.27 | 6.22 | 3.77 |
| Total Borrowings | 4.66 | 10.59 | 6.66 |
- Key Metrics (FY25):
- Return on Net Worth (RoNW): 49.33%
- Price/Earnings (P/E) Ratio: 10.11 (Pre-IPO)
- Debt to Equity Ratio: 0.38
- EPS: ₹7.42
SWOT Analysis & Peer Comparison
Strengths (Pros):
- Proven Track Record & Brand Reputation: A long history and established presence in the agricultural machinery sector.
- Strong Financial Performance: Significant growth in profit after tax (PAT) and a high return on net worth (RoNW).
- Diversified Product Portfolio: Offers a wide range of products catering to various farming needs.
- Growth Potential: The IPO proceeds will fund expansion, capitalizing on the rising demand for farm mechanization in India.
- Low Debt: The debt-to-equity ratio is healthy, indicating a manageable financial position.
Weaknesses (Cons):
- SME Listing: SME stocks carry higher risk and may have lower liquidity compared to mainboard listings.
- Sectoral Dependency: The company’s business is heavily dependent on the performance of the agricultural sector, which is subject to monsoon conditions and government policies.
- Geographical Concentration: A significant portion of its revenue comes from Chhattisgarh, making it vulnerable to regional economic downturns.
- High Competition: Operates in a competitive and fragmented market with both domestic and international players.
- No Long-Term Contracts: The absence of long-term contracts with customers could impact revenue stability.
Peer Comparison:
While a strict comparison isn’t possible, a peer like Indo Farm Equipment Ltd. (also in the farm machinery sector) can be used for a broader perspective. Gurunanak Agriculture’s financial metrics like RoNW and P/E ratio appear competitive, suggesting a reasonable valuation.
Listing Gain Expectation
Based on the strong financial performance, positive industry outlook, and the strategic use of IPO funds for expansion, the IPO appears fully priced. The grey market premium (GMP) has been noted as nil, suggesting there may not be significant listing gains right away. However, the company’s fundamentals are robust, and it presents a compelling long-term investment case.
Well-informed investors may consider applying for this IPO with a moderate allocation for a long-term horizon. The company’s focus on technological advancement and expansion positions it to benefit from India’s growing agricultural mechanization trend.
Conclusion
Gurunanak Agriculture India Ltd’s SME IPO is a promising opportunity for investors looking to tap into the agricultural mechanization theme in India, especially in SME-level firms. The company shows strong improvement in profitability, decreasing debt, high RoE, and a clear plan for expansion via the harvester unit.
However, it is not without risks: revenue flatness in FY25, concentrated reliance on few product lines and customers, execution risk for expansion, and the inherent volatility & liquidity concerns of SME shares.
If I were investing, I would consider applying, especially nearer to the issue price, if the IPO is priced at ₹75. But I’d do so with a medium-term horizon rather than expecting big short-term gains, and I’d watch carefully the allotment subscription numbers and peer IPO performance.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by experts are their own. Investors are advised to consult certified financial advisors before making any investment decisions.)
