City Crops Agro, a company engaged in the sale of agricultural products such as seeds and fertilizers, made a modest entry on the BSE SME platform today. Despite significant enthusiasm among retail investors, the IPO’s listing was lackluster. Retail investors had shown substantial interest in this IPO, which had a subscription rate of over 3 times in their category. Under this IPO, shares were issued at a price of Rs 25 per share, and it debuted on the BSE SME at the same price, offering no immediate listing gains.
Following its listing, the stock has made slight upward movements but remains nearly flat. It is currently trading at Rs 25.10 (City Crops Agro Share Price), resulting in a marginal profit of only 0.40 percent for IPO investors.
Response to City Crops Agro IPO
City Crops Agro’s IPO, with a size of Rs 15 crore, was open for subscription from September 26 to 29. Retail investors displayed strong interest in this IPO, oversubscribing their portion by 4.78 times. Overall, the IPO garnered a subscription rate of 3.47 times. The IPO issued 60 lakh new shares with a face value of Rs 10 each. The funds raised through these new shares will be allocated for working capital requirements, general corporate purposes, and issue-related expenses.
About City Crops Agro
City Crops Agro, formerly known as Bhagya Agro-Care, was established in 2003 and primarily deals in the sale of seeds and fertilizers. The company adopts a unique approach of purchasing agricultural products by providing advance payments to farmers, rebranding them, and distributing them to various channels. Additionally, it engages in crop cultivation on leased agricultural land, cultivating crops such as cucumber, onion, and castor according to market demand. The company presently holds approximately 47.31 acres of land.
Based in Ahmedabad, Gujarat, City Crops Agro reported a net profit of Rs 4.32 lakh in the financial year 2021, which substantially increased to Rs 48.41 lakh in the subsequent financial year 2022. In the financial year 2022-23, the net profit further surged to Rs 1.77 crore, demonstrating promising growth.