Pajson Agro India Ltd IPO GMP Steady at ₹5; Expected 4.2% Listing Gain

Pajson Agro India Ltd IPO is generating cautious interest in the grey market as it enters the final day of bidding today, 2025-12-15. With the listing scheduled for 2025-12-18 on the BSE SME platform, investors are closely monitoring the modest premiums and the institutional demand that has emerged over the last trading session.

While the headline Grey Market Premium (GMP) suggests a muted debut, the underlying financial growth of the company presents a contrasting narrative for fundamental investors. This analysis breaks down the live data to help you decide your final move before the window closes.

📊 GMP Snapshot: What’s the Premium Today?

As of the morning of December 15, 2025, the grey market sentiment for Pajson Agro India Ltd remains flat to marginally positive. Unlike the high-flying SME IPOs that often command triple-digit premiums, Pajson Agro is trading with a conservative outlook.

Current data from market observers indicates a GMP of ₹5 per share. This premium has compressed slightly from earlier levels of ₹7 seen at the start of the subscription period, reflecting a pragmatic market stance given the broader liquidity conditions in the SME segment.

Based on the upper price band of ₹118, the estimated listing price is hovering around ₹123, translating to a listing gain of approximately 4.24%.

Metric	Value
Issue Price	₹118
Current GMP	₹5 (Source: Economic Times / Univest as of 2025-12-13)
Expected Listing Price	₹123
Expected Listing Gain	4.2%
Minimum Investment	₹141,600 (1200 shares)
Data Source	Economic Times, Univest

Note: The GMP is a dynamic figure and changes based on demand-supply mechanics in the unofficial market. A premium of <5% indicates that the issue is essentially priced to perfection with limited room for immediate arbitrage.

📈 Subscription Status: How Strong is the Demand?

The subscription numbers for Pajson Agro India Ltd reveal a sharp divergence between institutional and retail interest. As of the close of Day 2 (December 12, 2025), the issue has been subscribed 2.38 times overall.

The standout metric is the Qualified Institutional Buyers (QIB) portion, which is significantly oversubscribed compared to the retail category. This institutional backing is often a signal of confidence in the company’s long-term valuation model, even if short-term retail flippers are staying away.

Category	Subscription (Day 2)
QIB	7.07 times
NII	0.48 times
Retail	0.55 times
Overall	2.38 times

Interpretation:

• High QIB Demand (7.07x): Institutional investors have aggressively bid for the quota, likely attracted by the company’s valuation multiples and growth metrics.
• Muted Retail Interest (0.55x): Retail investors, typically chasing high GMPs, have remained on the sidelines. The lack of a “bumper listing” signal from the grey market has dampened enthusiasm in this category.
• Final Day Expectations: With the issue closing today, we expect the NII and Retail figures to inch up, but the heavy lifting is clearly being done by the institutions.

🏢 Company Overview

Pajson Agro India Ltd operates in the agricultural processing sector, specifically focusing on the processing and distribution of cashew nuts. Incorporated in 2021, the company has rapidly scaled its operations to establish a presence in both domestic and international markets.

Business Model: The company processes raw cashew nuts into finished kernels, catering to various grades and quality standards. A key differentiator is its dual-channel approach:

1. Bulk Processing: Supplying unbranded kernels to large institutional buyers and wholesale mandis.
2. Branded Retail: Marketing premium dry fruits under its white-label brand, “Royal Mewa”. This B2C vertical allows for better margin retention compared to pure commodity trading.

Financial Performance: The financial data presented in the RHP is the strongest pillar of this IPO.

• Revenue Growth: The company reported a revenue increase of roughly 95% in the fiscal year ending March 31, 2025, compared to the previous year.
• Profitability: Profit After Tax (PAT) surged by an impressive 509% over the same period.
• Valuation: The issue is priced at a P/E of approximately 9.9x (post-issue), which is competitive relative to industry peers. The Return on Equity (ROE) stands at a robust 60.05%, indicating high efficiency in utilizing shareholder capital.

Competitive Positioning: While the cashew processing industry is fragmented and highly competitive, Pajson Agro’s integrated model—covering processing, grading, and branded packaging—provides a defensive moat. The strategic location of its processing units in Andhra Pradesh ensures proximity to raw material sources, reducing logistics costs.

🎯 Verdict: Should You Apply?

As we approach the subscription deadline, the decision matrix for Pajson Agro India Ltd is nuanced. The disconnect between the high institutional participation and the low grey market premium requires a disciplined approach.

Fundamental-IQ Verdict: Long Term Only

Rationale:

1. Listing Gain Risk: With a GMP of just ₹5 (4.2%), the buffer for listing day volatility is thin. If market sentiment turns negative on December 18, the stock could list flat or at a discount. Therefore, this is not a suitable candidate for investors seeking quick “pop” returns.
2. Strong Fundamentals: The 7x QIB subscription and 509% PAT growth suggest that smart money sees value at the ₹118 price point. The valuation (P/E ~10x) is attractive for a company growing at this pace.
3. Liquidity Constraint: Being an SME IPO with a lot size of 1200 shares (₹141,600 minimum), liquidity will be lower than mainboard IPOs. Exiting a losing position can be difficult.

Strategy:

• For Listing Gain Seekers: Avoid. The risk-reward ratio is unfavorable for short-term trades.
• For Long-Term Investors: Apply, but with caution. If you believe in the consumption theme and the “Royal Mewa” brand story, the stock offers value. However, be prepared to hold through potential listing day volatility. The institutional demand suggests that the stock may find a stable floor post-listing once the weak hands are shaken out.

Disclaimer: This analysis is based on current market data as of December 15, 2025. GMP is speculative and subject to rapid change. Past performance is not indicative of future results.