A Vegetable Seller's SME IPO Draws Social Media Interest: Here's All About Stanbik Agro

An initial public offering by a vegetable retailer in the SME space has drawn curious minds back in a pocket of Dalal Street that is closely tracked by returns-scounting traders and social media.

“IPO Mania is going crazy! Vegetable sellers are now coming with SME IPO!” said analyst Aditya Shah on X, as Stanbik Agro Ltd. opened subscriptions for its maiden public issue on Dec. 12, aiming to raise Rs 12.28 crore through a fixed-price offering.

The IPO comprises 40,92,000 equity shares priced at Rs 30 each and will close on Dec. 16. The minimum application size is 8,000 shares, with subsequent bids in multiples of 4,000 shares. Post allotment, the shares will be listed on BSE SME. The issue represents 30.71% of SAL’s post-IPO paid-up equity capital.

"There is nothing wrong with a business raising capital, it's their ambitions and right to grow," a user on X. "Markets are in a high optimism phase and craze of IPOs is at it's peak. But as investors, we must ask: Are margins stable and scalable? Is the business easily replaceable? How strong are cash flows? Is this growth-driven or just being chased by sentiments?"

Ahmedabad‑based Stanbik Agro operates in contract farming, wholesaling, and supply of agricultural commodities, with a mission to deliver fresh fruits and vegetables from farm to table while promoting sustainable practices. As of November 30, 2025, the company reported an order book exceeding Rs 16 crore, expected to be realized within the current fiscal year. Its B2C operations include seven retail outlets and godowns catering to consumers and small businesses.

According to the updated draft prospectus, Stanbik Agro will spend Rs 55 lakhs on IPO expenses. From the net proceeds, Rs 3.58 crore will fund new retail outlets, Rs 0.19 crore will cover brokerage charges, Rs 0.37 crore will go toward deposits, Rs 6.39 crore will be allocated for working capital, and Rs 1.20 crore for general corporate purposes.

Grow House Wealth Management Ltd. is the sole lead manager, Purva Sharegistry India Ltd. is the registrar, and MNM Stock Broking Ltd. will act as market maker.

Financially, SAL has shown strong growth. Revenue and net profit stood at Rs 19.96 crore and Rs 1.02 crore in FY23, Rs 26.55 crore and Rs 1.85 crore in FY24, and Rs 52.49 crore and R s3.74 crore in FY25.

The IPO is priced at a P/BV of 1.46 based on its NAV of Rs 20.55 as of September 30, 2025, and 1.28 on post-IPO NAV of Rs 23.45 per share.

(With inputs from PTI)