IPO Overview
Incorporated in December 2017, Papadmalji Agro Foods Limited is a Bikaner, Rajasthan-based ISO 22000:2018 certified food manufacturing company primarily engaged in the production and marketing of papads and allied traditional snack products. The company manufactures hand-made papads, machine-made papads, rice papads (khichiya), vrat special papads, and moongodi, and also trades ready-to-fry cereal pellets (2D/3D pellets) under its own brands. Its products are sold under five distinct brands — Zhakaas, Vishal, Rozana, Diamond, and Papadmalji — through a multi-channel distribution network spanning general trade, modern trade, quick-commerce platforms, a D2C website, and indirect exports to Middle Eastern markets through merchant exporters. As of March 31, 2026, the company’s distribution network comprised 76 distributors and 30 wholesalers covering 8,710 retail outlets across 21 states and 3 Union Territories.
The company is now launching its SME IPO on the NSE SME platform to raise ₹20.18 crore. The total issue comprises a fresh issue of ₹18.52 crore and an OFS of ₹1.66 crore. The IPO is priced at ₹69–₹72 per share with a lot size of 1,600 shares. The IPO opens on 29 September 2026 and closes on 1 October 2026, with listing expected on 7 October 2026 on NSE SME.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Book Built – SME |
| Listing Exchange | NSE SME |
| IPO Open Date | 29 September 2026 |
| IPO Close Date | 01 October 2026 |
| Allotment Date | 05 October 2026 (Expected) |
| Refund Initiation | 06 October 2026 |
| Credit to Demat | 06 October 2026 |
| Listing Date | 07 October 2026 (Tentative) |
| Price Band | ₹69 – ₹72 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,600 shares |
| Minimum Investment (Retail) | ₹1,15,200 (1 lot) |
| Issue Size | ₹20.18 crore |
| Fresh Issue | ₹18.52 crore |
| Offer For Sale (OFS) | ₹1.66 crore |
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | ~50% (Anchor: up to 60% of QIB portion) |
| Non-Institutional Investors (NII) | ~15% |
| Retail Individual Investors (RII) | ~35% |
| Domestic MF Reservation (within Anchor) | 33.33% of anchor book |
OFS / Selling Shareholders
The IPO includes a small OFS component of ₹1.66 crore. The OFS proceeds will go to the selling shareholders and not to the company. The majority of the issue (₹18.52 crore) is a fresh issue, meaning most of the capital raised flows directly into the company for business purposes.
Objects of the Issue (Fund Utilization)
The company proposes to use the fresh issue proceeds as follows:
- Capital expenditure for setting up a new manufacturing facility at Bachhasar, Bikaner (including building, plant & machinery, and installation of 250 kW rooftop solar power system) — ₹7.82 crore
- Installation of 125 kW rooftop solar power system at the existing Gharsisar unit — ₹0.31 crore
- Repayment / prepayment of bank borrowings — ₹8.60 crore
- Funding incremental working capital requirements — ₹2.81 crore
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Kreo Capital Private Limited
- Registrar to the Issue: MAS Services Ltd.
Promoters & Management
The promoters of the company are Mr. Jai Agarwal, Mrs. Premlata Agarwal, and Ms. Aanya Agarwal.
The company was originally a sole proprietorship (Vishal Namkeen Bhandar) which was acquired by Papadmalji Agro Foods Pvt. Ltd. through a business transfer agreement in February 2018. The company subsequently received a private equity investment of ₹10 crore from India Customer Insight Fund and converted from a private limited company to a public limited company in 2025.
Company Details
Papadmalji Agro Foods Limited is a traditional food products manufacturer focused on papads and allied snacks, built on a multi-brand strategy and a mixed production model — combining machine-made manufacturing with a contractor-led Batara–Batari home-based model involving women workers for hand-made papads. This model enables the company to scale hand-made production while remaining asset-light in that segment.
Sectors / Channels Served:
- General Trade (via distributors and wholesalers)
- Modern Trade
- Quick Commerce Platforms
- Direct-to-Consumer (D2C) via papadmalji.com
- Indirect Exports (Middle East, via merchant exporters)
Key Products:
- Hand-Made Papads
- Machine-Made Papads
- Rice Papads (Khichiya)
- Vrat Special Papads
- Moongodi
- Ready-to-Fry Cereal Pellets (2D/3D) — traded
Key Brands: Zhakaas, Vishal, Rozana, Diamond, Papadmalji
Manufacturing Facilities:
- Gharsisar Unit, Bikaner — existing unit for hand-made papads; ISO 22000:2018 certified
- Karni Unit, Bikaner — rented unit for machine-made production (planned for closure post new unit setup)
- Bachhasar Unit, Bikaner — proposed new manufacturing facility (to be set up from IPO proceeds)
Certifications: ISO 22000:2018 (Food Safety Management System)
Financial Snapshot
| Period | Total Revenue (₹ Cr) | PAT (₹ Cr) |
| FY24 | ₹262.88 | ₹21.08 |
| FY25 | ₹317.60 | ₹47.24 |
Key Financial Metrics
- Revenue grew ~21% YoY from FY24 to FY25; PAT more than doubled with a growth of ~124%
- PAT margin expanded sharply from 8.02% to 14.88% — indicating significant operating leverage
- ROE: 55.15% | ROCE: 44.51% | RoNW: 43.23%
- Pre-IPO P/E: 10.39x | Price-to-Book: 4.49x | EPS: ₹6.93
- Debt-to-Equity: 0.82x — moderate leverage; part of IPO proceeds to be used for debt repayment
Company Strengths
- Strong multi-brand presence (Zhakaas, Vishal, Rozana, Diamond, Papadmalji) catering to different price points and consumption occasions
- Wide and growing distribution network — 76 distributors, 30 wholesalers, 8,710 retail outlets across 21 states and 3 UTs as of March 2026
- Multi-channel sales model spanning general trade, modern trade, quick commerce, D2C, and exports — reducing dependence on any single channel
- Impressive financial performance — PAT more than doubled from FY24 to FY25; ROE of 55.15% and RoNW of 43.23% are significantly above SME sector averages
- ISO 22000:2018 certified — signals food safety compliance and helps qualify for modern trade and institutional supply
- Women-empowerment model (Batara–Batari home-based hand-made papad production) — adds to ESG credentials and brand positioning
Key Risks & Challenges
- Customer and supplier concentration: The company does not have long-term supply agreements with key suppliers, creating input-side vulnerability. Customer concentration risk is also present given the multi-channel model.
- Dependence on manual labour and weather for hand-made papads: Sun-drying and manual production create sensitivity to workforce availability, weather conditions, and seasonal disruption.
- Execution risk on new factory: The planned Bachhasar unit involves obtaining multiple regulatory approvals and licences; any delay could impact the intended consolidation of machine-made production and closure of the rented Karni unit.
- Competition from unorganised players: The papad and traditional snacks segment is heavily fragmented with strong local and regional unorganised competition, particularly in pricing.
- Seasonality: Demand is tied to festival and wedding seasons, creating revenue and cash flow unevenness across quarters.
- Small issue size and SME liquidity risk: At only ₹20.18 crore, the IPO is one of the smaller SME issues, and post-listing secondary market liquidity on NSE SME could be thin.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
