Stanbik Agro Ltd IPO
Trading
Price Band
₹30 – ₹30
Lot Size
4000
Minimum Bid Quantity
4000
Minimum Investment
₹120000
Issue Size
₹12.28Cr
Opens
2025-12-12
Closes
2025-12-16
Listing
19-12-2025
IPO Details
Issue Type
FP
Face Value
₹10
Tick Size
1
ISIN
INE16QA01011
Pre-Apply Available
No
Daily Bidding Time
10:00:00 - 17:00:00
About the Company
Stanbik Agro Limited is engaged in the manufacturing, wholesaling, and supplying of agricultural commodities, with a primary focus on fruits and vegetables. The company was originally incorporated in February 2021 as Stanbik Commercial Private Limited and later underwent several name changes and conversion to a public limited company in July 2024. It also acquired the partnership firm Jay Chamunda Trading Company in March 2024 under a business takeover agreement. The company’s operations have evolved from earlier trading in pulses and cereals to its present focus on fruits and vegetables after the induction of new promoters. It operates through three business verticals: contract farming, modern retailing, and B2B supply of agricultural produce. Contract farming is undertaken through agreements with farmers for crops such as sesame, cumin, and cotton. The modern retailing segment supplies fresh produce through organised retail channels, while the B2B segment caters to wholesalers, traders, and bulk purchasers, including e-commerce platforms. The company works with a network of farmers and APMC markets to source products and ensure distribution across its operating channels.
Pros
- • The company claims to have a strong sourcing network through its connections with farmers, enabling a steady supply of fruits and vegetables. This network allows flexibility in procurement based on seasonal changes and customer demand.
- • The company claims to prioritise supplying fresh fruits and vegetables by maintaining quality checks across its supply chain. This focus helps ensure consistency in product freshness and nutritional value from procurement to delivery.
- • The company serves a varied customer base, including B2B wholesalers, distributors, and B2C modern retail consumers. This diversified reach enables Stanbik to distribute its products across different market segments and reduce dependence on any single customer group. B2B and B2C channels allow it to utilise overlapping capabilities such as sourcing, storage, and distribution. This dual model helps the company cater to bulk buyers as well as retail-focused demand.
Cons
- • The company does not maintain long-term agreements with all its suppliers, leaving a portion of its supply chain exposed to fluctuations in pricing and availability. Since the company relies entirely on third-party manufacturers for fruits and vegetables, it has limited control over production quality or hygiene standards. Any disruption in supply, increase in procurement costs, or inability to adjust selling prices accordingly may adversely affect its margins, operations, and financial performance.
- • The company operates in a sector highly influenced by agricultural cycles, weather conditions, and monsoon patterns. Fluctuations in product availability and seasonal variations in demand may result in inconsistent sales volumes throughout the year. During low-activity periods, the company continues to incur operating expenses, which may not be offset by revenue, affecting profitability and cash flow stability.
- • The company is significantly dependent on a small group of suppliers and customers for its procurement and sales. Its top five customers accounted for 51.90 percent of the sales in FY25, 76.37 percent in FY24, and 97.61 percent in FY23, while the top five suppliers contributed 56.95 percent of the purchases in FY25, 75.22 percent in FY24, and 22.43 percent in FY23. Any disruption in supplies, deterioration in supplier capability, or loss of major customers may materially affect business continuity, order execution, and overall financial performance.
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