Pajson Agro India IPO Analysis

11 December 2025

While most SME listings sell stories, Pajson Agro brings substance: expanding capacity, quality-led processing, and profitability numbers that outshine far bigger players.

Parameter	Details
Issue Type	Book Building IPO
Issue Size	63,09,600 shares (aggregating upto Rs 74.45Cr)
Price Band	INR 112-118 per share
Lot Size	1,200 shares
Net Offered to Public	59,52,000 shares (aggregating upto Rs 70.23Cr)
Reserved for Market Maker	3,57,600 shares (aggregating upto Rs 4.22Cr)
Listing Platform	BSE SME
Issue Opens	December 11, 2025
Issue Closes	December 15, 2025
Listing Date

Before the Deep Dive: What’s Working — and What Isn’t

Strengths	Weaknesses
Strong and expanding processing capacity; historically high utilisation rates.	High supplier concentration—one supplier contributed ~91.5% of purchases in FY24–25.
Multiple quality certifications (ISO, HACCP, OHSAS, FSSAI, Halal).	Very low export share. In FY25 export revenue was 2.41%. In FY26(till Sep), no export revenue has been reported.
AI-enabled sorting and grading improve accuracy and productivity.	Heavy reliance on the  B2B segment, limiting margins compared to B2C/D2C players.
Capacity expansion to 18,000 MT  supports future scaling and demand.	Capacity utilisation declined to 47.84% in H1 FY26 following the commissioning of new capacity, as the expanded facilities are yet to be fully absorbed
Growing B2C brand “Royal Mewa” with digital marketing and e-commerce presence.	Royal Mewa Brand is still small with limited market recognition and a revenue share of ~1%
Ongoing supplier diversification reduces future procurement risk.	The product portfolio is commodity-based with limited pricing power.
Positive export feedback (UAE market tested successfully).	Working capital-intensive business model.
Specialised expertise in cashew processing.	No strong structural moat; faces competition from established processors/traders.

Industry Outlook

Government Initiatives

India is among the largest cashew-producing and exporting countries in the world. The cashew industry employs more than 10 lakh people on farms and factories in rural areas. It exports more than 15% of the world's export share. India primarily exports Cashew Kernels and very small quantities of Cashewnut shell liquid. In FY24, the cashew exports by value stood at $ 339.21 million as against $ 356.32 million in FY23, registering a decline of 4.80%. India exports cashews to over 60 countries spread across different parts of the world. The key export destinations for India are the UAE, Japan, the Netherlands, Saudi Arabia, the USA, the UK, Canada, France, Israel, and Italy. As of FY25 (April to December) the total value of cashew exports stood at Rs. 2,436 crore ($ 289.01 million). Importing of raw cashew nuts has played a key role in the growth of the Indian cashew industry, which accounts for almost half of the domestic and export demand for cashew kernels in the country.

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