A Bikaner-based papad manufacturer is raising Rs 20.18 crore through an NSE SME issue.
Papadmalji Agro Foods manufactures a range of papads in-house: hand-made papads, machine-made papads, machine-made ready-to-fry papads, rice papads (khichiya), vrat special papads and moongodi.
It sells them under five brands (Zhakaas, Vishal, Rozana, Diamond and Papadmalji), each aimed at different product categories, consumer segments and distribution channels.
Alongside its own brands, PAFL makes hand-made papads on a white-label basis. Clients market the products under their own brand names and packaging. The company also trades cereal pellets, which it sources and sells under its own brand as an additional revenue stream.
Hand-made papads remain a significant share of revenue. They are produced through the Batara–Batari model, in which contractors oversee women who roll papads at home. Machine lines handle dough preparation, sheeting, cutting, drying and packing. The company runs two FSSAI-licensed manufacturing units in Bikaner, one of which holds ISO 22000:2018 certification.
The business traces its roots to Vishal Namkeen Bhandar, a sole proprietorship started in 2012. The “Papadmalji” brand was registered as a device mark on March 30, 2017, and Papadmalji Agro Foods Private Limited was incorporated on December 19, 2017.
It took over the Vishal Namkeen Bhandar business through a slump sale under a Business Transfer Agreement dated February 17, 2018. As of March 31, 2026, its products were sold in 21 states and 3 Union Territories, and it had 118 employees plus 22 contract workers.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 29, 2026 |
| Issue Closes | October 1, 2026 |
| Allotment (expected) | October 5, 2026 |
| Listing | NSE SME Emerge |
| Listing Date (tentative) | October 7, 2026 |
| Issue Type | Book Built |
| Price Band | Rs 69 – Rs 72 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 20.18 crore (28,03,200 shares) |
| Fresh Issue | 25,72,800 shares (Rs 18.52 crore) |
| Offer for Sale | 2,30,400 shares (Rs 1.66 crore) |
| Lot Size | 1,600 shares |
| Min. Retail Application | 3,200 shares (2 lots) |
| Min. Retail Investment | Rs 2,30,400 |
| Post-IPO Market Cap | Rs 67.63 crore |
| IPO as % of Post-IPO Capital | 29.85% |
| Lead Manager | Kreo Capital Pvt Ltd |
| Market Maker | Giriraj Stock Broking Pvt Ltd |
| Registrar | MAS Services Ltd |
From the net proceeds, PAFL will use Rs 7.90 crore for capex on a new manufacturing facility with a rooftop solar plant, which will be located at Bachhasar. It will use Rs 5.80 crore to repay or prepay certain borrowings, and the rest for general corporate purposes.
Post-IPO, paid-up equity capital rises from Rs 6.82 crore (68,19,558 shares) to Rs 9.39 crore (93,92,358 shares). After its initial issue at par, the company issued shares at Rs 388 per share between April 2018 and February 2020. It then issued 8:1 bonus shares in September 2025.
Price Band
At the Rs 72 upper band, with FY26 earnings attributed to the fully diluted post-IPO equity, the issue is valued at a P/E of 12.97x, or 14.31x on FY25 earnings. The P/BV is 3.04 on the March 31, 2026 NAV of Rs 23.67, and 1.94 on the post-IPO NAV of Rs 37.20. The post-IPO market cap is Rs 67.63 crore.
Analysts consider the issue fully priced on the basis of its average earnings.
GMP Watch
As per market channels, the Papadmalji Agro Foods IPO GMP is ₹0. That indicates an estimated listing price of ₹72, flat to the upper band. Subscription figures for Day 1 had not been published at the time of writing.
GMP is unofficial, unregulated and unendorsed.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 26.29 | 31.76 | 33.54 |
| Net Profit (PAT) | 2.11 | 4.72 | 5.21 |
| PAT Margin (%) | 8.02 | 14.88 | 15.54 |
| RoCE (%) | 32.26 | 44.51 | 46.47 |
Total income rose from Rs 26.29 crore in FY24 to Rs 31.76 crore in FY25 and Rs 33.54 crore in FY26. Net profit rose from Rs 2.11 crore to Rs 4.72 crore and then Rs 5.21 crore over the same period. It more than doubled in FY25, while the PAT margin rose from 8.02% to 14.88%. RoCE increased from 32.26% to 46.47% across the three years.
Over the last three fiscals, the company reported an average EPS of Rs 6.65 and an average RoNW of 36.22%. Trade receivables have risen year on year. Contingent liabilities stood at Rs 2.77 crore as of March 31, 2026. The company hasn’t declared any dividends during the reported periods, and it adopted a dividend policy in October 2025.
Peer Comparison
The offer document says the company has no listed peers to compare with.
Risks to Consider
Rising receivables. Trade receivables have increased year on year during the reported periods.
Contingent liabilities. Contingent liabilities of Rs 2.77 crore as of March 31, 2026 are meaningful relative to FY26 net profit of Rs 5.21 crore.
Production and location concentration. Hand-made papads, which make up a significant share of revenue, rely on a contractor-led home-production model. All manufacturing is currently based in Bikaner.
Competition and raw materials. The packaged papad and traditional snacks market is competitive, with many regional and unorganised players, and input costs such as pulses and flour affect margins.
SME-specific risks. The minimum retail investment is Rs 2.30 lakh, liquidity on the SME platform is limited, and the issue includes an OFS by existing shareholders.
