Indian cashew processing major Pajson Agro India has secured a significant milestone in its growth journey as the Bombay Stock Exchange (BSE) approved its draft documents for an initial public offering (IPO). The company plans to go public to finance the establishment of its second manufacturing facility in Andhra Pradesh.
IPO Structure and Key Details
The proposed public offering will consist of a fresh issue of up to 63,09,600 equity shares, with each share having a face value of ₹10. The company has appointed Smart Horizon Capital Advisors Private Limited as the book-running lead manager for the issue, while Bigshare Services Private Limited will serve as the registrar.
This move represents a strategic step for the company to raise capital from public markets and accelerate its expansion plans in the competitive food processing sector.
Business Expansion and Financial Performance
The primary objective behind the IPO is to fund the establishment of a second cashew processing facility at Vizianagaram, Andhra Pradesh. This expansion will significantly enhance the company's production capabilities and strengthen its position in both domestic and international markets.
Pajson Agro India has demonstrated strong financial performance, reporting revenue of ₹187.27 crore for FY25. The company's operational efficiency is reflected in its EBITDA of ₹30.26 crore and Profit After Tax (PAT) of ₹20.42 crore for the same period.
Comprehensive Business Overview
Pajson Agro India specializes in processing raw cashew nuts into kernels for distribution across domestic and international markets. The company offers various grades of cashew nuts, processed and packaged in both bulk quantities and consumer retail packs.
The company operates through four key business verticals:
- Wholesale mandis
- Institutional sales
- Exports
- B2C brand Royal Mewa
Under its white-label brand "Royal Mewa", the company markets select dry fruits through a combination of e-commerce platforms and offline distribution channels. The brand has gained significant traction among health-conscious consumers across India.
Pajson Agro has established an impressive pan-India presence spanning 18 states and 3 union territories, supported by 71 distributors. The company's existing manufacturing facility in Andhra Pradesh has an installed capacity of 18,000 metric tons.
The company maintains strong relationships with leading retail and food service clients including Bikanervala, More Retail, Nutraj, Farmley, Reliance Retail, and Haldiram.
Sustainable Operations and Value Addition
Demonstrating commitment to sustainable business practices, Pajson Agro India effectively utilizes by-products such as cashew husks and shells for agricultural and industrial applications. This approach not only minimizes waste but also generates additional value from its processing operations.
The company's integrated business model, combining wholesale, institutional, export, and retail operations, positions it well for sustained growth in the expanding dry fruits and nuts market.
With the IPO approval in place, Pajson Agro India is poised to capitalize on the growing demand for processed cashew nuts both in India and global markets, while strengthening its manufacturing capabilities through the new Vizianagaram facility.
