SSMD Agrotech IPO Overview
“House of Manohar” agro-food FMCG raising ₹34.09 cr via 100% fresh issue of 28.17L shares. Price: ₹114-121. Lot: 1,000 shares (₹2.42L min). Funds for working capital (₹13.10 cr), debt repayment (₹6.83 cr), D2C dark store (₹2.04 cr), namkeen machinery (₹97L).
Listing: BSE SME Dec 2. Lead: 3Dimension Capital. Very new company (2-yr), sudden profit jump concerns. Competes with Contil India, HOAC Food.
IPO DETAILED INFORMATION
Issue Details
| Parameter | Details |
| IPO Type | SME |
| IPO Open Date | 25 November 2025 (Tuesday) |
| IPO Close Date | 27 November 2025 (Thursday) |
| Allotment Date | 28 November 2025 (Friday) – Expected |
| Credit to Demat | 1 December 2025 (Monday) – Expected |
| Refund Initiation | TBD |
| Listing Date | 2 December 2025 (Tuesday) – Tentative |
| Price Band | ₹114 – ₹121 per share |
| Face Value | ₹10 per share |
| Lot Size | 1,000 shares |
| Min Investment (Retail) | ₹2,42,000 (2 lots / 2,000 shares at upper band) |
| sHNI Investment | ₹3,63,000 (3 lots / 3,000 shares) minimum |
| bHNI Investment | ₹10,89,000 (9 lots / 9,000 shares) minimum |
| Issue Size | ₹34.09 crore total |
| Fresh Issue | ₹34.09 crore (100% fresh issue) |
| Offer for Sale (OFS) | NIL |
| Total Shares Offered | 28,17,000 equity shares |
| Listing | BSE SME (Emerge Platform) |
| Post-Issue Market Cap | ~₹103 crore (at upper price band) |
| P/E Ratio | ~13x (FY25 basis) |
| EPS | ₹9.19 (as per analyst reports) |
Issue Break-up
| Category | Allocation | Shares |
| QIB (Qualified Institutional Buyers) | Not more than 27,000 shares | ~1% |
| NII (Non-Institutional Investors) | Not less than 13,16,000 shares | 46.7% |
| Retail Individual Investors | Not less than 13,18,000 shares | 46.8% |
| Market Maker | 1,56,000 shares | 5.5% |
Note: Unusually low QIB allocation (1%) and high NII/Retail (46.7%+46.8%) – SME IPO pattern.
Objects of the Issue (Fund Utilization)
Fresh Issue Proceeds (₹34.09 crore / ₹3,409 lakhs) will be used for:
- Working Capital Requirements – ₹13.10 crore (38.4%)
- Day-to-day operations, inventory, receivables management
- Repayment of Borrowings – ₹6.83 crore (20%)
- Debt reduction and deleveraging
- Setting Up New D2C Dark Store Factories – ₹2.04 crore (6%)
- Micro-manufacturing units for direct-to-consumer sales
- Purchase of Machinery for Namkeen Plant – ₹0.97 crore (2.8%)
- Capacity expansion into new product category (snacks)
- General Corporate Purposes – Balance amount (~32.8%)
- Strategic initiatives, marketing, operations
Strategic Focus:
- Strengthen balance sheet through debt reduction
- Expand D2C channel for higher margins
- Diversify into snacks/namkeen category
- Scale working capital to support growth
Note: This is a 100% fresh issue with no OFS. All proceeds go to the company for growth.
Lead Managers & Registrar
Book Running Lead Manager (BRLM):
- 3Dimension Capital Services Limited
Registrar:
- Bigshare Services Private Limited
- Address: S6-2, 6th Floor, Pinnacle Business Park, Mahakali Caves Road, Next to Ahura Centre, Andheri East, Mumbai – 400093, Maharashtra
- Phone: TBD
- Email: TBD
- Website: www.bigshareonline.com
Market Maker:
- Nikunj Stock Brokers Limited
Promoters & Management
Key Promoters – Munjal Family:
- Ishu Munjal – Managing Director
- Responsible for strategy, growth, expansion, development
- Surbhi Munjal – Promoter
- Jaigopal Munjal – Chairman, Promoter
- Strengthens operational foundation
Company History:
- Founded 2023 – Very new company (only 2 years old!)
- Legacy: Evolved from two proprietorship firms (Manohar Lal Jaigopal Agro Industries and S.S. Agro India)
- Earlier Entity: Operated as Shree Dhanlaxmi Flour Mills Private Limited before renaming to SSMD Agrotech India Private Limited
- Operating under umbrella brand: House of Manohar (HOM)
Company Contact:
- Registered Office: TBD (Operations based in North India – Delhi NCR, Haryana, UP, Punjab, Uttarakhand)
- Website: Part of www.houseofmanohar.com
Company Strengths
- Explosive Revenue & Profit Growth – Revenue +35%, PAT +389% (FY24 to FY25):
- FY25 revenue: ₹99.18 cr (+35% vs ₹73.45 cr FY24)
- FY25 PAT: ₹5.38 cr (+389% vs ₹1.10 cr FY24) – nearly 5x profit jump!
- Demonstrates scalability and improving operational leverage
- Strong growth trajectory positioning company for expansion
- 100% Fresh Issue – All Proceeds to Company (No Promoter Exit):
- Entire ₹34.09 cr goes to company for genuine growth initiatives
- No OFS component signals promoter confidence and long-term commitment
- Capital infusion strengthens balance sheet and funds expansion
- Debt repayment (₹6.83 cr) improves financial health
- Multi-Brand Strategy & Diversified Product Portfolio:
- Four brands (Manohar Agro, Super SS, Delhi Special, Shree Dhanlaxmi) covering different segments
- Wide product range (puffed rice, chana dal, flour, poha, etc.) catering to daily essentials
- Diversification reduces dependency on single product/brand
- Ability to serve varied price points and customer preferences
- D2C Dark Store Model – Higher Margin Channel:
- Innovative D2C dark-store factories for micro-manufacturing and direct sales
- Bypasses middlemen improving margins
- IPO proceeds (₹2.04 cr) allocated for expanding D2C network
- Modern approach differentiating from traditional FMCG distribution
- Reasonable Valuation – P/E ~13x for High-Growth SME:
- P/E of ~13x (FY25 basis) – attractive vs some SME IPOs at 30-50x
- Lower valuation provides margin of safety
- Growth rate (35% revenue, 389% PAT) justifies modest premium
- Potential upside if growth sustains
- Entry into Snacks Category – Portfolio Expansion:
- ₹0.97 cr IPO allocation for namkeen plant machinery
- Diversifying from staples into higher-margin snacks segment
- Namkeen market growing with rising snacking culture
- Expansion increases addressable market
- North India Regional Focus – Established Presence:
- Operations across Delhi NCR, Haryana, UP, Punjab, Uttarakhand
- Regional concentration allows focused marketing and distribution
- Understanding of local tastes and preferences
- Established brand recognition in home markets
Key Risks & Challenges
- Extremely New Company – Only 2 Years Old (Incorporated 2023):
- Company incorporated just 2 years ago (2023) – minimal operating history
- Limited track record for assessing business sustainability
- Management execution capabilities at scale untested
- Corporate governance and systems still evolving
- High risk investing in such a nascent entity
- Sudden Profit Explosion – 389% PAT Jump Raises Red Flags:
- PAT surged from ₹1.10 cr (FY24) to ₹5.38 cr (FY25) – nearly 5x in one year
- Analyst concern: “Sudden boost in bottom lines from FY25 onwards raises eyebrows” (Dilip Davda)
- Pre-IPO earnings inflation typical in SME space
- Sustainability of such high growth rates highly questionable
- Possible one-time factors, accounting adjustments, or aggressive revenue recognition
- Flat GMP (₹0-4) – Subdued Market Sentiment:
- GMP of just ₹0-4 (0-3.3% premium) – minimal grey market enthusiasm
- Day 1 subscription 0.67x (QIB 2x, NII 0.44x, RII 0.86x) – lukewarm response
- Market skepticism about sustainability and valuation
- Indicates muted listing pop potential
- Investors cautious about new company with limited history
- Intense Competition from Established & Unorganized Players:
- Competes with established FMCG brands: Haldiram, Bikaji, Lijjat, local mills
- Listed peers: Contil India, HOAC Food India with more scale and experience
- Fragmented market with thousands of regional flour mills and agro processors
- Price-sensitive commodity categories limiting differentiation
- Low brand loyalty – customers switch based on price
- High Working Capital Intensity – 38.4% of IPO for WC:
- ₹13.10 cr (38.4% of IPO) allocated to working capital – indicates cash strain
- Agro-food business inherently working capital intensive (inventory, receivables)
- Seasonal procurement and extended credit to distributors
- Continuous liquidity requirements may necessitate future fundraising
- Cash flow management critical for survival
- Geographic Concentration – All Operations in North India:
- Presence limited to 5 North Indian states (Delhi NCR, Haryana, UP, Punjab, Uttarakhand)
- Regional economic slowdown or competition concentration creates vulnerability
- Limited national footprint vs established FMCG players
- Expansion beyond home markets requires significant investment and execution
- Commodity Risk & Margin Pressure:
- Raw materials (chana, wheat, rice) subject to agricultural commodity price volatility
- Monsoon dependency, crop yields, and government procurement policies impact input costs
- Limited pricing power in competitive market to pass on cost increases
- Margin compression risk during inflationary cycles
- Need for continuous cost management to maintain profitability
Disclaimer: This information is based on publicly available sources including SEBI RHP filings and company disclosures. Investors should conduct their own research and consult with financial advisors before making investment decisions. Past performance is not indicative of future results. The company is extremely new (incorporated 2023, only 2 years old), has sudden profit jump of 389%
