Gurunanak Agriculture India to Launch INR 28.8 Cr IPO on NSE Emerge

PNN

Durg (Chhattisgarh) [India], September 22: Gurunanak Agriculture India Limited (GNAIL), a Chhattisgarh-based farm equipment maker, will hit the capital markets with a ₹28.8 crore Initial Public Offering (IPO) later this month. The company said the issue will open on September 24 and close on September 26, with shares proposed to be listed on the NSE Emerge platform.

The fixed-price issue involves the sale of 38.4 lakh equity shares at ₹75 each (face value ₹10). The minimum bid lot has been set at 1,600 shares. Post-issue, promoter holding will stand at 68%, down from nearly 100% currently.

Expansion Push

Proceeds from the IPO will be used to set up a new harvester manufacturing unit, fund working capital needs, and meet general corporate expenses. The company aims to scale its annual capacity to 300 harvesters, 4,000 threshers and 4,000 other farm machines such as rotavators, reapers, and cultivators.

"From day one, our mission has been to serve India's farmers with technology that makes their work easier and more productive. This IPO represents a new chapter in our journey - one that allows us to expand our capabilities, bring in new technologies, and contribute more meaningfully to India's agricultural growth," said Harjeet Singh, Managing Director of GNAIL.

Strong Financials

The company reported a net profit of ₹6.05 crore in FY25, up from ₹2.45 crore in FY24 and ₹0.61 crore in FY23. Revenues were broadly stable at ₹43.85 crore in FY25, while operating margins improved sharply to 22.23%, compared to 12.2% in FY24.

Return on net worth also surged to 49.3%, reflecting improved operational efficiency. Total borrowings fell to ₹4.66 crore in FY25, down from over ₹10.5 crore the previous year.

Market Footprint

Incorporated in 2010, GNAIL manufactures threshers, harvesters, rotavators, reapers, and cultivators, with a strong presence across seven states including Chhattisgarh, Odisha, Madhya Pradesh, Karnataka, Maharashtra, Punjab, and Andhra Pradesh.

Its combined harvester, launched recently, has seen strong demand among farmers due to its advanced features and cost efficiency. The company operates through a network of 48 dealers, besides co-branded partnerships and direct sales from its Raipur factory.

GNAIL owns 4.08 hectares of land in Durg, with 1.16 lakh sq. ft. dedicated to manufacturing facilities, 0.98 lakh sq. ft. for stocking, and 2.25 lakh sq. ft. available for future expansion.

Sector Context

India is the world's second-largest producer of foodgrains, fruits, and vegetables, and the largest producer of milk, pulses, and spices. With over 55% of the population dependent on agriculture, mechanisation is seen as a critical lever for productivity.

Industry experts note that rising labour costs, government subsidies, and rural financing schemes are fuelling demand for modern farm machinery. According to Inc42, the Indian agri-machinery sector is projected to touch $24 billion by 2025.

Promoters & Management

The company is promoted by Harjeet Singh (Managing Director), Jaspreet Kaur (Whole-Time Director), and Kamaljeet Singh Kalsi (Non-Executive Director). While Singh oversees overall strategy and growth, Kaur focuses on finance and governance, and Kalsi contributes to R&D and technology.

Key Intermediaries

- Lead Manager: Finshore Management Services Ltd.

- Registrar to the Issue: Cameo Corporate Services Ltd.

- Market Maker: Anant Securities

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