Gurunanak Agriculture India Ltd (NSE SME)

About Company

Founded in February 2010, Gurunanak Agriculture India Limited is a manufacturer of agricultural machinery based in India. The company is dedicated to enhancing farming efficiency through a diverse portfolio of equipment designed for various stages of the agricultural process.

Core Product Portfolio
The company manufactures a comprehensive range of machinery to support farmers. Its key products include specialized threshers for paddy, groundnut, wheat, and maize, as well as a versatile Multi-crop Thresher. The lineup is further expanded to include Harvesters, Reapers, and Rotavators, providing solutions for harvesting, reaping, and land preparation.

Manufacturing and Operations
The company's manufacturing unit is strategically located in the Durg District of Chhattisgarh. This facility supports its production of cost-effective and locally manufactured machinery. As of February 28, 2025, the company employs a dedicated team of 43 personnel across its various operational and administrative departments.

Market Presence and Distribution
Guru Nanak Agriculture India Ltd. has a strong and expanding market presence. It has built a robust distribution network through partnerships with dealers and suppliers across multiple Indian states. The company has also successfully expanded internationally, with its exports being well-received in several countries, including Bhutan, Ghana, Nepal, Nigeria, South Africa, Sri Lanka, Sudan, and Uganda.

Marketing and Engagement
The company actively promotes its brand and engages with its customer base by regularly participating in agricultural trade fairs, exhibitions, and seminars. This strategy allows it to showcase its latest innovations and technological advancements directly to farmers, distributors, and industry experts.
 

Gurunanak Agriculture IPO Objectives

The Company Gurunanak Agriculture IPO proposes to utilise the Net Proceeds from the Issue towards the following objects:

1. Funding Capital Expenditure towards setting up Harvester Manufacturing Unit
The amount allocated for this objective is Rs. 17.067 crores. These funds will be used for the establishment and setup of a new manufacturing unit dedicated to harvesters.

2. Working Capital Requirements
The amount allocated for this objective is Rs. 6.769 crores. This capital will be used to meet the company's ongoing operational and working capital needs.

3. Issue Related Expenses
The amount allocated for this objective is Rs. 2.964 crores. These funds will be used to cover all expenses associated with the public issue process.

4. General Corporate Expenses
The amount allocated for this objective is Rs. 2.00 crores. This is allocated for general corporate purposes.

Strength

Weakness

Risks in New Project Setup: Setting up the Harvester manufacturing unit involves risks that may affect growth, cash flows, and financial stability.

Uncertainty in Timely Commissioning: Delays or inefficiencies in making the new unit operational could harm business performance and financial condition.

Delay in Orders & Civil Work: Pending orders for civil work and machinery may cause project delays and cost overruns.