Unisem Agri BSE SME IPO review (Not Rated)

•    The company is engaged in developing, processing and selling diverse range of seeds.
•    Its portfolio includes vegetables, flowers and field crops seeds.
•    The company marked growth in its top and bottom lines for the reported periods.
•    Based on its recent financial data, the issue appears aggressively priced.
•    Only well-informed/cash surplus investors may park moderate funds for medium term, others may avoid it.

ABOUT COMPANY:
Unisem Agritech Ltd. (UAL) is engaged in developing, processing, and selling diverse range of seeds for vegetables, flowers and field crops. By integrating conventional breeding techniques, it strives to develop hybrid vegetable, flower and field crop seeds which offers higher yields, improved product quality, and greater resistance to pests and diseases compared to naturally grown varieties. Its core operations focus on developing hybrid vegetable, flower and field crop seed varieties and processing them to ensure the consistent quality.

The company continuously develop various type of hybrid breeder seeds and select only the best qualitative traits from it which undergo additional processing and eliminating more seeds and provide only the superior quality seeds, which are known as foundation seeds. The foundation seeds consist of the parental materials essential for developing a hybrid. Following this, the foundation seeds then multiplied into commercial seeds, which are then offered in the market for agricultural production. 

UAL provides multiple seed variants for vegetable, flower and field crop, specifically designed to meet the requirements of different Agro-climatic conditions, including factors such as water availability, crop duration, and soil characteristics across various geographic regions. To facilitate the production of commercial seeds, the company enters into seed grower production agreements with various vendors. Throughout this large-scale production cycle, its team conducts regular field visits to monitor crop growth and ensure the recommended standard practices are followed. Once harvested, the commercial seeds undergo a rigorous quality check. Only after passing this evaluation these seeds are then processed at its processing unit located at registered office (RS No. 11B/2A/4, Magoda Village, Near KSRTC Bus Depot, Ranebennur, Haveri, Ranebennur, Karnataka, India, 581115) which is equipped with technology and spans over 873.75 square meter. Finally, the processed commercial seeds are carefully packed and distributed for sale to various dealers situated at multiple states. As of September 30, 2025, it had 166 employees on its payroll.

ISSUE DETAILS/CAPITAL HISTORY:
The company is coming out with its maiden book building route IPO of 3300000 equity shares to mobilize Rs. 21.45 cr. at the upper cap. It has announced a price band of Rs. 63 – Rs. 65 per share of Rs. 5 each.  The IPO opens for subscription on December 10, 2025, and will close on December 12, 2025. The minimum application to be made is for 4000 shares and in multiple of 2000 shares thereon, thereafter. Post allotment, shares will be listed on BSE SME. The issue constitutes 29.12% of post-IPO paid-up equity capital of the company. From the net proceeds of the issue, the company will utilize Rs. 5.75 cr. for repayment/prepayment of banking facilities availed, Rs. 11.06 cr. working capital, and the rest for general corporate purpose.

The IPO is solely lead managed by Getfive Advisors Pvt. Ltd., while Purva Sharegistry India Pvt. Ltd. is the registrar to the issue. SMC Global Securities Ltd., is the market maker. 

The company has issued/converted entire initial equity shares at par value. It has also issued bonus shares in the ratio of 3 for 5 in March 2023. The average cost of acquisition of shares by the promoters is Rs. 3.11, and Rs. 3.12 per share. 

Post-IPO, company’s current paid-up equity capital of Rs. 4.02 cr. will stand enhanced to Rs. 5.67 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 73.66 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted a total income/net profit, of Rs. 46.91 cr. / Rs. 1.32 cr. (FY23), Rs. 61.16 cr. / Rs. 2.15 cr. (FY24), Rs.  69.08 cr. Rs. 4.27 cr. (FY25). For H1- FY26 ended on September 30, 2025, it earned a net profit of Rs. 3.50 cr. on a total income of Rs. 51.34 cr. 

For the last three fiscals, the company has reported an average EPS of Rs. 3.83, and an average RoNW of 40.69%. The issue is priced at a P/BV of 3.98 based on its NAV of Rs. 16.35 as of September 30, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute its FY26 super annualized earnings on post-IPO expanded equity base, then the asking price is at a P/E of 10.53, and based on its FY25 earnings, the P/E stands at 17.24. Thus, the issue appears aggressively priced.

The company has posted PAT margins of 2.82% (FY23), 3.52% (FY24), 6.19% (FY25), 6.81% (H1-FY26), and RoCE Margins of 23.00%, 33.73%, 38.89%, 18.06%, respectively for the referred periods. 

DIVIDEND POLICY:
The company paid a dividend of Rs. 3.74 per share (Rs. 10) for FY23, and Rs. 3.24 per share (Rs. 10) for FY24. It has adopted a dividend policy in March 2025, based on its financial performances and future prospects.

COMPARISON WITH LISTED PEERS:
As per the offer document, the company has shown Vishwas Agri, Upsurge Seeds, Dhanlaxmi Crop, as its listed peers. They are currently trading at a P/E of 7.37, 18.7, and 10.2 (as of December 05, 2025, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORDS:
This is the 2nd mandate from Getfive Advisors in the ongoing fiscal. The only listing took place so far opened at a discount. The merchant banker has a poor track record.