SSMD Agrotech India's much-anticipated entry into the public markets turned out to be a disappointing affair for investors. The company's shares made a shaky debut on the BSE SME platform today, December 2, 2025, listing at a significant discount to its issue price.
A Disappointing Market Debut
The stock of SSMD Agrotech was listed on the Bombay Stock Exchange's SME platform at ₹73 per share. This opening price marked a steep 39.67% discount to its initial public offering (IPO) price band of ₹121 per share. This weak listing defied the grey market premium (GMP) indications, which had pointed towards a flat listing at around the issue price, with the GMP standing at ₹0 in the run-up to the debut.
The public issue, which aimed to raise ₹34 crore, was open for subscription from November 25 to November 27, 2025. The basis of allotment was finalized on November 28. The IPO comprised entirely a fresh issue of 28 lakh shares, with no offer-for-sale component from existing promoters or shareholders.
IPO Details and Investor Response
Investor interest in the offering was moderate. The IPO managed to garner an overall subscription of 1.62 times the shares on offer. The subscription breakdown reveals a mixed picture:
- Retail Investors: Subscribed 2.54 times.
- Non-Institutional Investors (NII): Subscribed 0.62 times.
- Qualified Institutional Buyers (QIB): Subscribed 5.33 times.
In total, the company received bids for 43 lakh shares against the 26.6 lakh shares on offer. The lot size for the IPO was set at 1,000 shares, meaning retail investors needed to apply for a minimum of two lots, translating to a minimum investment of ₹2.42 lakh at the upper price band.
Use of Proceeds and Company Profile
SSMD Agrotech India plans to utilise the net proceeds from the IPO for several strategic purposes. A major portion will be directed towards meeting working capital requirements and repaying certain borrowings. Specifically, the company has earmarked ₹2.04 crore for setting up new D2C (Direct-to-Consumer) dark store factories and ₹97 lakh for purchasing machinery for its upcoming Namkeen manufacturing unit. The remaining funds will be used for general corporate purposes.
The company operates in the agro-food sector, engaging in manufacturing, trading, and repackaging of various products. It markets its goods under four key brands: Manohar Agro, Super SS, Delhi Special, and Shri Dhanlaxmi. SSMD Agrotech has a strong foothold in North Indian markets, including Delhi NCR, Haryana, Uttar Pradesh, Punjab, and Uttarakhand, and also sells directly to consumers through its D2C model supported by micro-manufacturing units.
The company's financial performance has shown robust growth. For the financial year 2024-25 (FY25), SSMD Agrotech reported operational revenue of ₹99.17 crore, a significant jump from ₹73.34 crore in FY24. Its EBITDA surged to ₹8.46 crore from ₹3.22 crore, while Profit After Tax (PAT) also improved to ₹5.38 crore from ₹3.22 crore in the previous year.
The IPO was managed by 3Dimension Capital Services as the sole book-running lead manager, with Bigshare Services acting as the registrar. Despite the weak listing, the company's growth trajectory and planned capital expenditure will be key factors watched by market participants in the coming quarters.
