Pajson Agro India has secured the Bombay Stock Exchange’s in-principle approval to proceed with its SME initial public offering, marking a significant milestone for the young agro-processing company. The proposed issue will comprise a fresh sale of equity shares intended to raise approximately Rs.57 crore, capital the company plans to deploy toward expanding manufacturing capacity and strengthening its operational footprint. With a growing presence in the processed-cashew segment, Pajson Agro has recorded steady financial progress and aims to enhance its market positioning through new investments. The approval places the company on track for its transition from a private enterprise to a public-listed player.
BSE Nod Clears Path for Public Issue
Pajson Agro India announced that BSE Ltd. has granted in-principle approval for its SME IPO, enabling the company to begin the final steps toward listing. The draft red-herring prospectus outlines a fresh issue of equity shares totaling Rs.57 crore, with no offer-for-sale component. This means the entire capital raised will flow directly into the company’s balance sheet, strengthening liquidity and supporting its growth initiatives.
Fund Utilization: Expansion at the Core
A substantial portion of the issue proceeds will be allocated to establishing a second cashew-processing facility in Vizianagaram, Andhra Pradesh. The expansion is expected to bolster production capacity, reduce supply-chain dependence, and improve operational efficiency. Remaining funds will be used for general corporate purposes, including working-capital support and business modernization.
Business Overview: Scaling in a Competitive Market
Founded in 2021, Pajson Agro India specializes in transforming raw cashew nuts into value-added kernels for both domestic consumption and export markets. The company distributes products under its in-house brand and supplies large retail chains and food manufacturers. With processed nuts and dry-fruits witnessing rising consumer demand, the company is strategically positioned in a segment supported by steady consumption patterns and expanding retail penetration.
Financial Performance and Growth Outlook
Pajson Agro has demonstrated consistent revenue growth, driven by higher procurement volumes and improved market reach. Profitability metrics indicate operational discipline, supported by a focus on quality output and efficient sourcing. The proposed expansion is expected to strengthen margins over time by enabling scale-driven cost efficiencies.
What It Means for Investors
While SME IPOs typically involve higher risk due to lower liquidity, they also offer opportunities to participate in early-stage growth stories. Pajson Agro’s clear capital-deployment roadmap, expanding product portfolio, and improving financial profile may appeal to investors looking for exposure to the agro-processing industry. However, business execution—particularly around new capacity—will be a key factor determining its long-term performance.
Outlook: Moving Toward Public Listing
With regulatory approval now in place, Pajson Agro India is expected to proceed with finalizing the IPO date, price band, and subscription schedule. The listing will mark a pivotal chapter in the company’s evolution, offering greater visibility, transparency, and access to capital markets as it aims to scale further in one of India’s fastest-growing consumer segments.
Comments