Green Asia Impex Limited IPO

01At a glance

What the company does: sources, processes and exports frozen shrimp, and trades and exports dried chillies, from a plant at Unguturu in West Godavari, Andhra Pradesh (RHP p.212, RHP p.1).

Who pays it: business-to-business buyers, importers, distributors and food processing companies in India and abroad (RHP p.106). The top ten customers in the two segments together were 77.85% of FY26 revenue, against 69.52% in FY25 (RHP p.35).

Why it is raising money: ₹4,002.77 lakh of the ₹5,310.00 lakh fresh issue funds a new seafood processing facility costing ₹5,126.94 lakh in all; the rest is general corporate purposes (RHP p.106, RHP p.108).

How fast it has grown: revenue from ₹31,738.66 lakh in FY24 to ₹38,380.39 lakh in FY26, about 10.0% a year, and profit after tax from ₹665.99 lakh to ₹1,561.12 lakh, about 53.1% a year (our arithmetic, RHP p.69).

The one thing to understand: the business has never generated cash from operations in the three years shown. Operating cash flow was −₹1,499.90 lakh, −₹505.82 lakh and −₹626.63 lakh, funded by short-term borrowings that reached ₹9,181.07 lakh at March 2026 (RHP p.70, RHP p.68).

02The business, in plain words

Green Asia buys raw shrimp from farmers and agents, processes it (grading, peeling, deveining, freezing, packing) and sells it frozen, mostly to buyers in India and to importers abroad; separately it buys, cleans, grades and sells dried chillies (RHP p.212, RHP p.33). Shrimp was 87.76% of FY26 revenue and dried chillies 9.77% (RHP p.212).

A seafood importer or a domestic distributor needs frozen shrimp → orders from Green Asia → Green Asia buys raw shrimp, processes it at Unguturu and freezes it → Green Asia keeps the spread between the sale price and the cost of raw shrimp, processing, power and freight.

In shrimp the company handles Vannamei, Black Tiger and freshwater varieties, in Head-On Shell-On, Headless Shell-On and Peeled and Deveined formats (RHP p.212). In chillies it deals in Teja, Guntur sannam, Bydagi and other varieties (RHP p.212). Shrimp is most available from October to July and chillies from January to April, so the two products spread procurement across the year (RHP p.212). Annual installed shrimp processing capacity is 11,100 MTPA, from a rated 37 tonnes a day over 300 working days (RHP p.107).

Earnings equation: Profit ≈ tonnes processed × (realisation − raw shrimp and chilli cost) − processing and freight cost − interest. In FY26 purchases were ₹34,942.01 lakh and finance costs ₹1,246.69 lakh against revenue of ₹38,380.39 lakh (RHP p.69).

03Where the money comes from

Source: RHP p.212.

Source: RHP p.35. Revenue does depend on a few customers, and more so than before: the top ten in each segment together were 77.85% of FY26 revenue against 69.52% in FY25 (RHP p.35). The prospectus itself says the rise in the chilli segment reflects a narrowing customer base rather than growth, because revenue from the sixth to tenth largest chilli customers fell 53.78%, from ₹1,191.36 lakh to ₹550.80 lakh (RHP p.35). The largest shrimp customer was 15.30% of total revenue in FY26 (RHP p.225). Chilli exports went almost entirely to China until FY26, when the domestic share of that segment rose to 56.62% (RHP p.231).

04The growth record

Source: RHP p.69, RHP p.70, RHP p.143.

Return on equity was 51.34%, 50.16% and 46.43%; return on capital employed 18.85%, 19.99% and 19.69%; the debt to equity ratio 4.12, 2.9 and 2.4 (RHP p.143). Our arithmetic: revenue grew about 10.0% a year from FY24 to FY26 and profit after tax about 53.1% a year, while the EBITDA margin rose 110 basis points and the PAT margin 197 basis points (RHP p.69, RHP p.143). Other income was ₹483.10 lakh in FY26, 23.0% of profit before tax of ₹2,103.50 lakh (our arithmetic, RHP p.69).

05What the growth is made of

Revenue rose ₹6,641.73 lakh between FY24 and FY26, and almost all of it came from shrimp: shrimp revenue rose from ₹27,611.95 lakh to ₹33,682.79 lakh, while dried chillies rose from ₹3,039.53 lakh to ₹3,751.61 lakh, having peaked at ₹5,660.82 lakh in FY25 (RHP p.212). Within shrimp, domestic sales rose ₹2,950.58 lakh and exports ₹3,120.26 lakh (our arithmetic, RHP p.212).

The prospectus does not disclose tonnes sold or realisation per tonne, so the increase cannot be separated into volume and price. What it does give is capacity use: block freezing utilisation was 52.90%, 56.07% and 54.82%, and individual quick freezing 0.56%, 8.46% and 20.00% (RHP p.36). Block freezing utilisation therefore did not rise over the period while revenue did.

06Earnings quality

The item that needs explaining is the cash. Profit before tax of ₹2,103.50 lakh in FY26 became −₹255.00 lakh of cash from operations before tax, because inventories absorbed ₹2,727.51 lakh and receivables ₹3,386.24 lakh, against ₹2,203.03 lakh released by payables (RHP p.70). Receivables rose from ₹2,573.58 lakh at March 2024 to ₹9,735.48 lakh at March 2026, from 8.11% to 25.37% of revenue (RHP p.43). The gap has been funded by short-term borrowings, which rose from ₹5,332.28 lakh to ₹9,181.07 lakh over the same two years (RHP p.68).

07The balance sheet

At March 2026, long-term borrowings were ₹765.69 lakh and short-term borrowings ₹9,181.07 lakh (RHP p.68). Cash and cash equivalents were ₹52.65 lakh and other bank balances ₹47.61 lakh, so net debt was about ₹9,846.50 lakh (our arithmetic, RHP p.68). Inventories were ₹11,760.52 lakh and trade receivables ₹9,735.48 lakh, against trade payables of ₹10,715.92 lakh (RHP p.68). Property, plant and equipment was ₹1,542.51 lakh (RHP p.68). Net worth was ₹4,142.60 lakh (RHP p.68).

Contingent liabilities were ₹788.69 lakh, all of it claims against the company not acknowledged as debts, which the prospectus states is 19.04% of net worth; ₹54.25 lakh has been deposited under protest and three instalments of the 10% pre-deposit, ₹24.62 lakh, remain, for which the company has asked for time to December 31, 2026 citing cash flow constraints from export market conditions (RHP p.72).

After the issue: the fresh issue of ₹5,310.00 lakh, before expenses, is more than the March 2026 net worth of ₹4,142.60 lakh, and none of it repays debt (our arithmetic, RHP p.68, RHP p.106).

08What the money is for

Source: RHP p.106, RHP p.108; the percentage is our arithmetic. The facility costs ₹5,126.94 lakh in all: land ₹124.17 lakh, already paid from internal accruals, construction ₹1,761.91 lakh scheduled across Fiscal 2027 and 2028, and plant and machinery ₹3,240.86 lakh in Fiscal 2028; ₹1,124.17 lakh of the total comes from internal accruals (RHP p.108).

The cost estimate rests on supplier quotations and a Capital Expenditure Project Report dated September 9, 2026 by V Radha Krishna, an independent chartered engineer (RHP p.106). The existing plant is built for block frozen shrimp; the new one is for value-added products including individual quick frozen, semi-cooked and ready-to-eat shrimp (RHP p.107). Orders for the machinery have not been placed (RHP p.105).

Into the business ₹5,310.00 lakh, the fresh issue (RHP p.65). To selling shareholders ₹700.00 lakh, the offer for sale (RHP p.65).

09Who is selling

Source: RHP p.103, RHP p.93, RHP p.1. The offer for sale is stated in rupees, not shares, because the price is not yet fixed (RHP p.103). At the upper band of ₹90 the two would together be offering about 7,77,778 shares (our arithmetic, RHP p.103).

10Promoters

The promoters are Pasupuleti Venkata Ramarao and Pasupuleti Meenakshi (RHP p.1). Pasupuleti Venkata Ramarao was one of the six subscribers to the memorandum in August 2014 (RHP p.87). The weighted average cost of acquisition for both promoters is ₹3.33 a share (RHP p.1).

Promoter economics: remuneration was ₹33.00 lakh to Pasupuleti Venkata Ramarao and ₹27.00 lakh to Pasupuleti Meenakshi in FY24, ₹24.00 lakh and ₹18.00 lakh in FY25, and ₹39.00 lakh and ₹23.00 lakh in FY26 (RHP p.73). An unsecured loan of ₹163.39 lakh from Pasupuleti Venkata Ramarao was outstanding at March 2026, down from ₹353.26 lakh at March 2024 (RHP p.73). The holdings come from the subscription and two rights issues at ₹10 a share in 2015 and 2019, and from a 2:1 bonus issue in November 2025 (RHP p.87, RHP p.88).

Litigation: no criminal proceedings, no regulatory actions, no material civil proceedings and no tax proceedings are pending against either promoter, and no disciplinary action by SEBI or the stock exchanges has been taken against them in the last five financial years (RHP p.371, RHP p.369).

11Who already owns it

Source: RHP p.92, RHP p.93. The company has 17 shareholders (RHP p.93). Promoter and promoter group hold 94.65% (RHP p.92). The public holding comes almost entirely from the pre-IPO placement of 6,71,045 shares at ₹77 each to six allottees on September 3, 2026, which raised ₹516.70 lakh (RHP p.88, RHP p.1). At the upper band, promoter and promoter group holding would fall to about 64.9% after the issue (our arithmetic, RHP p.92).

12What changed just before the IPO

• The company became a public limited company on September 9, 2025, with a fresh certificate of incorporation dated September 19, 2025 (RHP p.254).
• A 2:1 bonus issue on November 18, 2025 took the share count from 49,29,300 to 1,47,87,900 (RHP p.88).
• A pre-IPO placement of 6,71,045 shares at ₹77 each, allotted on September 3, 2026, raised ₹516.70 lakh and reduced the fresh issue by that amount (RHP p.88, RHP p.104).
• Trade receivable days went from 26 in FY24 to 49 in FY25 and 77 in FY26, and inventory days from 85 to 114 (RHP p.43, RHP p.356, RHP p.361).
• Short-term borrowings rose from ₹5,332.28 lakh at March 2024 to ₹9,181.07 lakh at March 2026 (RHP p.68).
• The subsidiary Green Asia Cold Storage was sold during FY25, with the consideration adjusted against promoter loan repayments of ₹67.88 lakh each (RHP p.73).
• Purchases of ₹2,377.66 lakh from Green Asia Marine LLP, a related party, began in FY26, where there had been none before (RHP p.73).
• The chilli segment turned from exports to the domestic market: domestic chilli sales went from ₹712.68 lakh in FY25 to ₹2,124.06 lakh in FY26 while exports fell from ₹4,948.14 lakh to ₹1,627.55 lakh (RHP p.231).

13Capacity and expansion

Source: RHP p.36. Annual installed shrimp processing capacity is 11,100 MTPA, from a rated 37 tonnes a day over 300 working days (RHP p.107). The prospectus states that utilisation in shrimp processing is generally optimised at 60% to 65%, so it describes 54.82% as broadly in line (RHP p.107). Capacity utilisation for dried chillies is not standardised and is not ascertainable, because cleaning, grading and sorting are done largely by hand (RHP p.37).

The new facility, on about 13,354.63 square metres already bought, is to add grading, peeling, deveining, freezing and packaging lines for value-added products (RHP p.107). The prospectus gives its installed capacity in the comparison table on the same page; machinery orders have not been placed (RHP p.107, RHP p.105).

14Market size and industry structure

As claimed: the shrimp export market outside India was INR 40,674 crore in CY25, up from INR 38,890 crore in 2019, and is forecast to reach about INR 47,050 crore by 2030; the Indian shrimp market was an estimated INR 82,041 crore in FY25 and is forecast at about INR 1,28,400 crore by 2030, all from the Ken Research report titled "India Shrimp & Red Chilies Export Potential Outlook to 2030" of September 2026, commissioned and paid for by the company (RHP p.108, RHP p.211).

The same commissioned report states India was the second largest shrimp exporter in CY25, with export value of about USD 5,000.0 million, citing MPEDA (RHP p.170).

The part that is addressable: frozen shrimp sold to Indian buyers and to importers in the countries the company ships to, and dried chillies sold in India, China and Thailand (RHP p.212, RHP p.231).

What the company is today: ₹38,380.39 lakh of FY26 revenue, of which ₹33,682.79 lakh was shrimp, on 11,100 MTPA of installed capacity (RHP p.212, RHP p.107). The prospectus does not state the company's share of any market.

The commissioned report attributes India's position to low labour cost and established processing infrastructure against China and Ecuador (RHP p.171).

15Competitive position

Source: RHP p.142. The prospectus gives no revenue, margin or debt figures for the peers, so the table is limited to what it prints. What the company sells on is procurement close to the shrimp farms of West Godavari, the two-product cycle that spreads the year, and processing that now extends to individual quick frozen product (RHP p.212, RHP p.107).

16Peers the company named

Peers named in the offer document: Apex Frozen Foods, Kings Infra Ventures and Essex Marine (RHP p.142).

Apex Frozen Foods traded at 29.16 times earnings, Kings Infra Ventures at 17.21 and Essex Marine at 4.40, all on closing prices of March 30, 2026 (RHP p.142). The prospectus states the highest, lowest and average of that set as 29.16, 4.40 and 16.92 (RHP p.141). The peer set was drawn from the commissioned Ken Research report and the peers' own published results (RHP p.142).

Apex Frozen Foods carries a net asset value per share of ₹168.96 against ₹22.74 for the company, so the two are not of a size (RHP p.142); the prospectus does not print peer revenue, so how far each peer's business overlaps cannot be measured from it.

17Valuation at the issue price

At the upper band of ₹90, the ₹5,310.00 lakh fresh issue is 59,00,000 new shares, added to 1,54,58,945 existing shares (our arithmetic, RHP p.65, RHP p.103):

Source: RHP p.69, RHP p.141, RHP p.143; the arithmetic is ours. At the lower band of ₹85 the market capitalisation is ₹18,466.75 lakh, on 62,47,058 new shares (our arithmetic, RHP p.65). Enterprise value, with March 2026 net debt of about ₹9,846.50 lakh, is ₹29,069.55 lakh (our arithmetic, RHP p.68). The prospectus prints net asset value per share as ₹28.01 in its own basis-of-price table and ₹22.74 in the peer comparison on the next page (RHP p.141, RHP p.142).

The three peers the prospectus names traded at 29.16, 17.21 and 4.40 times earnings on March 30, 2026, a median of 17.21 times (RHP p.142). At the upper band the issue is priced at 12.3 times FY26 profit on the enlarged share count, 29% below that median, and 8.5 times on the prospectus's own earnings per share (our arithmetic, RHP p.142).

18Risks, in plain words

Cash from operations: operating cash flow was negative in each of FY24, FY25 and FY26, at −₹1,499.90 lakh, −₹505.82 lakh and −₹626.63 lakh (RHP p.70) → the business funds its working capital with borrowings → short-term borrowings were ₹9,181.07 lakh at March 2026 against net worth of ₹4,142.60 lakh (RHP p.68).

Receivables: trade receivable days went from 26 to 77 in two years (RHP p.43) → cash is tied up in customers' hands and ₹145.66 lakh of debit balances were written off in FY26 (RHP p.70) → receivables were 25.37% of FY26 revenue (RHP p.43).

Customer concentration: the top ten customers in the two segments were 77.85% of FY26 revenue (RHP p.35) → losing one moves the whole company → in dried chillies the top ten were 95.29% of that segment, and the prospectus says the rise reflects a narrowing customer base (RHP p.35).

One raw material, one region: shrimp was 87.76% of FY26 revenue (RHP p.212) → disease, weather or a poor farming cycle in coastal Andhra Pradesh moves both supply and price → the top five shrimp suppliers were 26.88% of shrimp purchases in FY26 (RHP p.33).

The expansion: ₹4,002.77 lakh of the issue goes into a plant whose machinery has not been ordered (RHP p.105) → delay or cost escalation would push back the return on it → ₹3,240.86 lakh of the machinery spend falls in Fiscal 2028 (RHP p.108).

Utilisation: block freezing utilisation was 54.82% in FY26, no higher than the 52.90% of FY24 (RHP p.36) → new capacity has to find new demand → individual quick freezing, the value-added line the new plant is built around, ran at 20.00% in FY26 (RHP p.36).

Tax demand: four direct tax matters involving ₹954.06 lakh are pending, and ₹788.69 lakh is carried as a contingent liability, 19.04% of net worth (RHP p.370, RHP p.72) → an adverse outcome would take cash → the company has asked for time to December 2026 to pay ₹24.62 lakh of the pre-deposit instalments, citing cash flow constraints (RHP p.72).

19Litigation and regulatory matters

The tax demands against the company include ₹901.19 lakh and ₹49.90 lakh under section 143(3) of the Income Tax Act for assessment year 2022, and small TDS demands (RHP p.370). These are amounts demanded, not amounts payable; the company has deposited ₹54.25 lakh under protest and treats the balance as contingent (RHP p.72). Nothing material is pending against the promoters, and no disciplinary action by SEBI or the stock exchanges has been taken against them in the last five financial years (RHP p.371, RHP p.369). Matters are material, under the board's policy of February 10, 2026, above ₹54.37 lakh (RHP p.369).

20Related-party transactions

Source: RHP p.73. SG Exports was 25.24% of FY24 revenue as the largest customer that year, and is no longer shown as a related party in FY26 (RHP p.226, RHP p.73); it still appears as the largest dried chilli customer in FY26, at ₹1,622.58 lakh (RHP p.231). Green Asia Marine LLP became a supplier in FY26 and was the largest supplier of the year, at ₹2,377.66 lakh or 6.80% of purchases (RHP p.227).

An advance to supplier of ₹274.53 lakh was given to Green Asia Cold Storage in FY26 (RHP p.73). Unsecured loans from Pasupuleti Venkata Ramarao stood at ₹163.39 lakh at March 2026 (RHP p.73). The prospectus states all these transactions were on an arm's length basis (RHP p.73).

21What the offer document does not say

Tonnes of shrimp or chillies bought and sold are not disclosed, so revenue cannot be split into volume and price. Realisation per tonne and gross margin by product are not disclosed. Capacity utilisation for the dried chilli operation is stated to be not ascertainable. The names of the largest shrimp customers are withheld, except where they are related parties. The company's share of any market is not stated. The amount for general corporate purposes and the issue expenses are left blank. Whether the statutory auditor has changed in the last three years is not stated in the pages read.

22Five questions for management

1. How many tonnes of shrimp were processed and sold in each of FY24, FY25 and FY26, and at what realisation and gross margin per tonne?
2. Why has operating cash flow been negative in all three years, and what would have to change for it to turn positive?
3. What drove receivable days from 26 to 77, and how much of the ₹9,735.48 lakh outstanding at March 2026 has since been collected?
4. What throughput and product mix does the new facility need to cover its ₹5,126.94 lakh cost, and when are machinery orders to be placed?
5. On what terms did purchases of ₹2,377.66 lakh from Green Asia Marine LLP begin in FY26, and how do its rates compare with unrelated suppliers?

1Sources and cited facts

This study was read from 1 document the company filed. The 103 figures it cites are listed under the document each came from, with the page and the sentence as printed.