SSMD Agrotech Shares Plunge on BSE SME Debut
SSMD Agrotech's entry into the Indian stock market on December 2, 2025, was nothing short of dramatic. The company listed its shares at ₹73 on the BSE SME, which represented a staggering 39.67% drop from its IPO price of ₹121. Initially, the grey market had predicted a flat listing, but the outcome surprised many investors.
The IPO raised ₹34 crore through a fresh offering of 28 lakh shares, with no offer-for-sale component. The company had set a lot size of 1,000 shares, requiring retail investors to invest a minimum of ₹2.42 lakh for two lots. The moderate interest during the three-day subscription window resulted in an overall subscription rate of 1.62 times. Notably, the retail category saw a subscription of 2.54 times, while the Qualified Institutional Buyers (QIB) segment was the most subscribed at 5.33 times.
SSMD Agrotech operates in the agro-food sector, manufacturing and trading a variety of products under its brands, which include Manohar Agro, Super SS, Delhi Special, and Shri Dhanlaxmi. The company has a strong presence across key northern states like Delhi NCR, Haryana, Uttar Pradesh, Punjab, and Uttarakhand, further enhancing its visibility through a direct-to-consumer (D2C) model.
The proceeds from the IPO will primarily be directed towards enhancing working capital and repaying certain borrowings. Moreover, the company plans to invest ₹2.04 crore in establishing new D2C dark store factories and ₹97 lakh in purchasing machinery for its upcoming Namkeen manufacturing unit. The remaining funds will be allocated for general corporate purposes.
Despite the rocky start on the stock market, SSMD Agrotech has shown promising financial performance. In FY25, the company reported revenues of ₹99.17 crore, up from ₹73.34 crore the previous year. The EBITDA also saw a significant rise, climbing to ₹8.46 crore from ₹3.22 crore in FY24, while the profit after tax increased to ₹5.38 crore compared to ₹3.22 crore in the prior year.
This debut serves as a reminder of the challenges that new companies face in the stock market. The fall in share price raises questions about investor confidence and market volatility. For SSMD Agrotech, the path ahead will require strategic planning and effective execution to ensure sustained growth and recovery in share price.
