Mahamaya Life BSE SME review

•    The company started as importer/trader of critical and specialized pesticide formulations has now started manufacturing the same.
•    The company posted growth in its top and bottom lines for the reported periods.
•    Boosted top and bottom lines from FY25 onwards raise eyebrows and concern over its sustainability.
•    Based on its recent financial data, the issue appears fully priced. 
•    Investors may park funds for medium to long term.

ABOUT COMPANY:
Mahamaya Lifesciences Ltd. (MLL) specializes in the manufacturing of pesticide formulations and supply bulk formulations catering to both Indian agrochemical companies, as well as multinational corporations (MNCs). It began journey by focusing on import and registration of vital pesticide molecules (Technical) that were not produced domestically in India. The company imported these molecules after lot of product research and worked on registering them with the Central Insecticides Board and Registration Committee (CIBRC) under the Department of Agriculture, Government of India. After successful registration it marketed these molecules both as technical and as value-added end-use formulations for both domestic manufacturers and MNCs.

Since its inception in 2002, the company has expanded from the sale of technical to companies, to establishing own manufacturing facility/plant for formulations in December 2021, located at Dahej, Gujarat. From this manufacturing facility, it produces and sells bulk formulations, branded products (own brand products), and export them to customers. Domestically, the company markets own branded products across states such as Punjab, Haryana, Rajasthan, Uttar Pradesh, Gujarat, Maharashtra, Andhra Pradesh, and Telangana through a well-established dealer network. Internationally, it exports products to countries including the Dominican Republic, Turkey, Egypt, and the UAE, ensuring full adherence to all manufacturing and compliance standards.

With its research and development capabilities, the company identifies the latest, safer molecules, conduct field trials at State Agricultural Universities and carry out toxicology and chemistry studies at CIBRC approved laboratories. It invests in registration of new molecules, which are, once approved and registered are distributed within India. With an advanced formulation plant, the Company supplies products across the country and has marketing agreements with multinationals corporations.

Its emphasis is on cultivating strong relationship with both domestic companies and multinational corporations. The company has focused on developing and expanding biological crop care products including bio stimulant formulations, plant growth regulators, bio fertilizers, as well as new age bio-fermented insecticides, fungicides and herbicides all designed to be low in toxicity and eco-friendly. As of September 30, 2025, it had 78 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route combo IPO of 6178800 equity shares of Rs. 10 to mobilize Rs. 70.44 cr. at the upper cap. The issue comprises 5638800 fresh equity shares issue (worth Rs. 64.28 cr. at the upper cap), and an Offer for Sale (OFS) of 540000 equity shares worth Rs. 6.16 cr. at the upper cap). The issue opens for subscription on November 11, 2025, and will close on November 13, 2025. The company has announced a price band of Rs. 108 – Rs. 114 per share. The minimum number of shares to be applied is for 2400 shares and in multiples of 1200 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 26.40% of the post-IPO paid-up capital of the company. From the net proceeds, the company will utilize Rs. 18.00 cr. for working capital, Rs. 2.53 cr. for construction of warehouse building and purchase of machinery, Rs. 29.42 cr. for capex on setting up of a new technical manufacturing plant, Rs. 3.75 cr. for purchase of equipment for existing formulation plant, and the rest for general corporate purposes. 

The IPO is solely lead managed by Oneview Corporate Advisors Pvt. Ltd., and KFin Technologies Ltd., is the registrar to the issue. Mansi Share & Stock Broking Pvt. Ltd., is the Market Maker for the company. Basan Equity Broking Ltd. is a syndicate member.

Having issued initial equity shares at par value, the company issued further equity shares at a fixed price of Rs. 84 per share in September 2024. It has also issued bonus shares in the ratio of 1.25 for 1 in March 2016, 1 for 2 in January 2018, and 10 for 1 in July 2024. The average cost of acquisition of shares by the promoters is Rs. 0.00, Rs. 0.01, and Rs. 0.67 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 17.77 cr. will stand enhanced to Rs. 23.41 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 266.82 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 137.40 cr. / Rs. 3.75 cr. (FY23), Rs. 162.83 cr. / Rs. 5.22 cr. (FY24), and Rs. 267.17 cr. / Rs. 12.94 cr. (FY25). For Q1 of FY26 ended on June 30, 2025, it earned a net profit of Rs. 4.10 cr. on a total income of Rs. 84.04 cr. It posted growth in its top lines, but marked boo0sted top and bottom lines for FY25 onwards.

According to the management, with their specialization in value added products and rising exports, they are confident of maintaining the trends posted for recent periods.

For the last three fiscals, the company has reported an average EPS of Rs. 5.28 and an average RoNW of 32.25%. The issue is priced at a P/BV of 3.79 based on its NAV of Rs. 30.11 as of June 30, 2025, and at a P/BV of 2.27 based on its post-IPO NAV of Rs. 50.32 per share (at the upper cap).

If we attribute FY26 annualized super earnings on post-IPO fully diluted equity capital, then the asking price is at a P/E of 14.18. Based on FY25 earnings, the P/E stands at 20.62. The issue relatively appears fully priced. 

For the reported periods, the company has posted PAT margins of 2.73% (FY23), 3.20% (FY24), 4.84%, (FY25), 4.88% (Q1-FY26), and RoCE margins of 20.00%, 16.16%, 23.15%, 7.30%, respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends for the reported periods of the offer document. It will adopt a prudent dividend policy post listing, based on its financial performance and future prospects. 

COMPARISION WITH LISTED PEERS:
As per the offer document, the company has shown Nova Agritech, Bhagiradha Chemicals, as its listed peers. They are currently trading at a P/E of 16.3 and 263.0 (as of November 04, 2025. However, they are not truly comparable on an apple-to-apple basis. This comparison appears to be an eyewash. 

MERCHANT BANKER’S TRACK RECORD:
This is the 4th mandate from Oneview Capital in the last three fiscals (including the ongoing one).  From the last 3 listings so far, all listed with a premium ranging from 1.81% to 90.00% on the listing date.