Pajson Agro's Rs 354.52 crore deal targets 6.2x capacity

Pajson Agro India Limited proposes to acquire Pacific Global FZCO for Rs 354.52 crore entirely through shares, a board-approved transaction that states combined raw-cashew capacity would reach 113,000 metric tonnes (MT), or 6.2 times the current 18,000 MT base. The proposal remains subject to shareholder approval after the 4 November 2026 board outcome.

What is Pajson Agro buying for Rs 354.52 crore?

Pajson Agro is proposing to acquire 100% of Pacific Global FZCO, Dubai, for Rs 354.52 crore. The consideration is approximately 1.0 times Pacific Global's stated net worth of Rs 351.20 crore as at 31 August 2026, according to the investor presentation.

Pacific Global operates a raw-cashew processing plant in Côte d’Ivoire, which Pajson Agro identifies as a key raw-cashew origin. The target has annual processing capacity of 60,000 MT and reported consolidated revenue of Rs 104.18 crore for January to August 2026, an eight-month period.

The presentation describes the transaction as processing at origin combined with global customer reach. Pacific Global sells to the United States, Europe, the Middle East and China, but the document does not disclose revenue by geography, customer concentration, profit, debt or cash flow for the target.

How will Pajson Agro fund the Pacific Global purchase?

Pajson Agro proposes to settle the full Rs 354.52 crore consideration through a share swap, with no cash outflow stated for the acquisition. It may issue up to 1,20,58,397 new shares at Rs 294 each to Pacific Global's shareholders, including the promoter.

The board approved the proposal on 4 November 2026, but shareholder approval is still required. The presentation indicates closing approximately two to three months after approval and does not specify the shareholder-meeting date, final allotment date or post-transaction ownership distribution.

The board also approved ESOS 2026 and authorised capital of Rs 40 crore. Since the acquisition includes up to 1,20,58,397 new shares, the absence of a fully diluted capital schedule means the presentation does not quantify the combined effect of the share swap and potential employee stock-option issuance.

How does the proposed transaction change cashew capacity?

Pajson Agro states that the deal would increase combined capacity from 18,000 MT to 113,000 MT, equal to 6.2 times the present base. Pacific Global's disclosed 60,000-MT plant would supply origin-based processing capacity in Côte d’Ivoire.

The 18,000-MT existing base plus Pacific Global's 60,000 MT equals 78,000 MT, rather than the stated 113,000 MT. A separately disclosed 35,000-MT new unit at Vizianagaram would bring those three figures to 113,000 MT, although the acquisition page does not expressly reconcile the calculation.

Pajson Agro's strategy page separately sets an objective of moving from 18,000 MT towards 65,000 MT to 70,000 MT by FY30. The presentation does not explain how that FY30 range relates to the 113,000-MT combined-capacity statement or whether the FY30 figure excludes the proposed Pacific Global acquisition.

What operating benefits does management expect from Pacific Global?

Pajson Agro presents the 60,000-MT Côte d’Ivoire facility as a way to process raw cashews at origin. Management says its farm-to-fork model is intended to link farm-gate sourcing, scalable processing and distribution to support quality, cost and supply reliability.

The strategy refers to relationships with farmers, local buying agents and communities, alongside multi-origin buying. These are management's stated mechanisms for direct sourcing and reducing supply and price risk; the presentation supplies no historical procurement savings, raw-nut yield data or margin comparison for the Côte d’Ivoire plant and Pajson Agro's 18,000-MT base.

On the sales side, Pajson Agro aims for 80% of business from business-to-business bulk activity, with institutional customers targeted at 70% of revenue and wholesale at 30%. The presentation does not state whether Pacific Global's reported Rs 104.18 crore of January-August 2026 revenue already has that sales mix.

How does the deal fit Pajson Agro's financial and investment plans?

Pajson Agro's standalone total income increased from Rs 96.04 crore in FY24 to Rs 256.92 crore in FY26, while EBITDA, or earnings before interest, tax, depreciation and amortisation, rose from Rs 5.74 crore to Rs 37.82 crore. Profit after tax increased from Rs 3.35 crore to Rs 24.78 crore over the same period.

The proposed share-funded acquisition sits alongside the 35,000-MT Vizianagaram project. Of the Rs 57.00 crore initial public offering allocation for that unit, Rs 18.27 crore had been deployed by 30 September 2026, or 32.1%, and Rs 16.37 crore was recorded as capital work in progress.

Gross initial public offering proceeds were Rs 74.45 crore, of which Rs 38.82 crore remained unutilised at 30 September 2026 after Rs 7.03 crore of issue expenses, Rs 10.34 crore for general corporate purposes and Rs 18.27 crore for the new unit. For H1 FY27, Pajson Agro reported return on equity of 16.90%, return on capital employed of 18.44%, debt-to-equity of 0.40 times and a current ratio of 1.75 times; no pro forma post-deal ratios are disclosed.

Conclusion

Pajson Agro's proposed all-share purchase would add a 60,000-MT Côte d’Ivoire processor and overseas customer access to its 18,000-MT Indian base. The Rs 354.52 crore consideration is close to Pacific Global's stated Rs 351.20 crore net worth, while the share-swap structure avoids a stated cash payment for the acquisition.

The next disclosed milestones are shareholder approval and a closing targeted about two to three months after approval. Readers should also watch for clarification of the 113,000-MT capacity calculation, the relationship between that figure and the 65,000-MT to 70,000-MT FY30 objective, and progress in deploying the remaining Rs 38.82 crore of initial public offering proceeds.