Rukmani Devi Garg Agro Impex IPO listing today. Strong demand and GMP hint at healthy debut – News Air Insight

Rukmani Devi Garg Agro Impex is set to make its debut on the BSE SME platform on October 6, after a robust investor response to its Rs 23.52 crore IPO. The issue, which opened on September 26 and closed on September 30, was subscribed an impressive 29.59 times overall, led by strong participation from retail and high-net-worth investors.

The company’s IPO was priced at Rs 99 per share, and the grey market premium (GMP) currently stands at Rs 21, indicating an estimated 21% premium over the issue price. This suggests strong investor sentiment ahead of listing, largely driven by the company’s solid financial growth and well-established presence in the agro-processing sector.

Subscription and investor response

The IPO saw heavy bidding across categories, with the retail portion subscribed 39.7 times, while the non-institutional investor (NII) segment witnessed a remarkable 77.1 times subscription. The qualified institutional buyer (QIB) portion also saw steady interest at 8.2 times.Rukmani Devi Garg Agro Impex raised funds entirely through a fresh issue of 23.76 lakh equity shares, with no offer-for-sale component, indicating that the proceeds will directly benefit business expansion.

Business profile

Rukmani Devi Garg Agro Impex is engaged in agro-processing and trading, with a focus on procurement, processing, storage, and distribution of agricultural commodities such as wheat, mustard, maize, coriander, flax seeds, and soybeans.The company sources produce from over 500 agents across Rajasthan and Madhya Pradesh, connecting directly with the farming community. It operates three owned warehouses with a 20,000 MT capacity and leases two additional facilities with another 20,000 MT capacity. The firm’s processing unit, located in a RIICO industrial zone, has a 3,500 MT storage capacity.

Financials

Rukmani Devi Garg Agro Impex has demonstrated consistent growth in recent years. For FY25, the company reported a 34% rise in revenue to Rs 327.32 crore, while profit after tax grew 51% to Rs 7.57 crore. Its EBITDA margin improved to 3.87%, and PAT margin stood at 2.32%.

Use of proceeds

The company plans to use Rs 16.5 crore from the IPO proceeds to fund working capital requirements, supporting its procurement and warehousing operations amid rising demand. The remaining funds will be deployed for general corporate purposes.

The company’s integrated operations, expanding product mix, and distribution reach have positioned it well in India’s growing agri-processing and food value chain.

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