Quanto Agroworld IPO

Incorporated in March 2018 as Quanto Agroworld Private Limited, the company operates across cultivation, harvesting, steam distillation, processing, packaging and supply of botanical products. Its cultivation base includes approximately 424 acres of developed agricultural land under Maharashtra State Farming Corporation Limited, additional land under development, and privately leased agricultural land accessed through its subsidiary Quanto Agritech Private Limited. The company's processing facility is located at Ravalgaon in Nashik, Maharashtra, and has a certified essential oil processing capacity of approximately 11.25 metric tonnes per annum. The company plans to increase processing capacity to approximately 56.25 metric tonnes per annum through additional distillation capacity. Its products are used in herbal tea, nutraceuticals, functional beverages, personal care, home care, fragrance, aromatherapy and pharmaceutical applications. The company also follows a vertically integrated operating model intended to provide greater control over raw materials, processing and product quality.

Quanto Agroworld is raising ₹31.02 Cr through a 100% fresh issue of 46.30 lakh equity shares at a fixed price of ₹67 per share. The issue proceeds are proposed to be used for a distillation plant at Rawalgaon, expansion of farms, repayment or prepayment of borrowings, general corporate purposes and issue expenses. The company reported revenue of ₹40.35 Cr and PAT of ₹8.38 Cr in FY26, compared with revenue of ₹16.49 Cr and PAT of ₹6.63 Cr in FY25. FY26 ROCE stood at 25.62%, while RoNW was 24.68%. At the issue price, the reported pre-IPO P/E is 10.28x and post-IPO P/E is 13.99x, with a market capitalisation of approximately ₹117.16 Cr post issue. The main investment considerations include strong FY26 revenue growth and healthy return ratios, while investors should also consider customer concentration, agricultural and weather-related risks, working-capital requirements and the company's relatively small operating scale.