Amir Chand Jagdish Kumar Exports Files for Rs 550 Crore IPO

Amir Chand Jagdish Kumar Exports, a basmati rice exporter, filed draft papers with SEBI on June 25, 2025, to raise Rs 550 crore ($66 million) via an IPO. The funds will expand its processing capacity, supporting India’s $5 billion rice export market.

The IPO includes a fresh issue of Rs 400 crore and an offer-for-sale of Rs 150 crore by promoters. The company, based in Haryana, aims to double its 500,000-tonne annual processing capacity, targeting 10% of India’s $5 billion basmati export market. In 2024, it exported 300,000 tonnes to 50 countries, generating Rs 1,200 crore in revenue.

India’s agricultural sector, with Rs 29.49 lakh crore output in FY24, relies on exports for 15% of GDP. The IPO will fund a new 200,000-tonne facility in Punjab, costing $50 million, and modernize existing units, increasing efficiency by 20%. The 2025 Budget’s $1 billion for agricultural infrastructure supports such expansions, but 30% of funds face disbursement delays.

Challenges include volatile global prices, with basmati at $1,200/tonne in 2025, and 20% export duty, reducing margins by 10%. Haryana’s 5 million tonnes of rice production benefits from 90% irrigation coverage, but water scarcity risks 15% yield losses. The company’s AI-based sorting technology, used in 10% of operations, cuts waste by 5%, aligning with global leaders like Thailand’s $4 billion rice exports.

Environmental concerns include 10% methane emissions from rice fields, requiring $100 million in mitigation. The Green India Mission, enhancing soil health, supports sustainable farming, but only 5% of farmers adopt green practices. Posts on X highlight export optimism, though some note regulatory hurdles. Scaling requires 5,000 skilled workers and $50 million in training by 2030.

Conclusion

Amir Chand’s Rs 550 crore IPO strengthens India’s rice export market, supporting agricultural growth. Addressing price volatility and sustainability is critical for success.

Source: Outlook Business,