Freshara Agro Exports Limited is launching its Initial Public Offering (IPO), and there’s a lot of buzz around it. With the IPO being entirely a fresh issue, it offers a great opportunity for investors looking to invest in the agro-export business. In this article, we’ll break down everything you need to know about the Freshara Agro Exports IPO—from important dates and the price band to the company’s background and financial health. Let’s dive in!
Freshara Agro Exports IPO Overview
The Freshara Agro Exports IPO is a book-built issue worth ₹75.39 crore. A total of 6.49 million shares (64.99 lakh shares) will be issued, with a price band of ₹110 to ₹116 per share. The IPO opens on October 17, 2024, and closes on October 21, 2024. The stock will be listed on the NSE SME with a tentative listing date of October 24, 2024.
Key IPO Details
IPO Details
Information
IPO Open Date
October 17, 2024
IPO Close Date
October 21, 2024
Issue Type
Book Built Issue IPO
Price Band
₹110 to ₹116 per share
Total Shares Issued
6,499,200 shares
Face Value
₹10 per share
Listing At
NSE SME
Minimum Lot Size (Retail)
1 Lot = 1,200 shares
Minimum Investment Amount (Retail)
₹139,200
Book Running Lead Manager
GYR Capital Advisors Private Limited
Registrar
Purva Sharegistry India Pvt Ltd
Market Maker
Giriraj Stock Broking
Important Dates for Freshara Agro Exports IPO
Mark your calendars for the important dates related to this IPO. Here’s a quick look at the IPO timeline:
Event
Date
IPO Opening Date
October 17, 2024
IPO Closing Date
October 21, 2024
Basis of Allotment Finalization
October 22, 2024
Initiation of Refunds
October 23, 2024
Credit of Shares to Demat Account
October 23, 2024
Listing Date (Tentative)
October 24, 2024
Price Band, Lot Size, and Investment Requirements
The price band for Freshara Agro Exports IPO is between ₹110 and ₹116 per share. The minimum lot size for retail investors is 1,200 shares, meaning the minimum amount required for investment is ₹139,200.
Investment Breakdown for Retail and HNI Investors:
Investor Type
Number of Lots
Shares
Amount
Retail (Minimum)
1 Lot
1,200
₹139,200
HNI (Minimum)
2 Lots
2,400
₹278,400
Anchor Investors
Freshara Agro Exports raised ₹20.43 crore from anchor investors on October 16, 2024, one day before the IPO officially opened. A total of 1.76 million shares were offered to these investors.
The lock-in period for anchor investors is split into two parts:
50% of shares will be locked for 30 days, ending on November 21, 2024.
The remaining shares will be locked for 90 days, ending on January 20, 2025.
Freshara Agro Exports IPO Reservation
Here’s a breakdown of how shares are allocated across different investor categories:
Investor Category
Shares Offered
Qualified Institutional Buyers (QIB)
Not more than 50% of the net offer
Retail Investors
Not less than 35% of the net offer
Non-Institutional Investors (HNI)
Not less than 15% of the net issue
About Freshara Agro Exports Limited
Established in 2015, Freshara Agro Exports Limited, formerly known as Freshara Picklz Exports, is a significant player in the agro-export industry. The company specializes in preserved Gherkins and other pickled vegetables, exporting them to various countries around the world. Through a contract farming program, the company works with local farmers in Tamil Nadu, Karnataka, and parts of Andhra Pradesh to procure raw produce.
Product Offerings:
Gherkins
Baby Corn
Jalapenos
Other Pickled Vegetables
The company processes and exports vegetables in three different packaging categories:
Industrial Packaging: Food-grade drums and pails.
Food Packaging: Plastic buckets and tin cans.
Retail Packaging: Glass jars and tin cans.
Accreditations:
Freshara Agro Exports holds several prestigious certifications, including:
FSSAI
US FDA
Star-K Kosher
APEDA
BRCGS
These accreditations reflect the company’s commitment to quality and international standards.
Competitive Strengths:
Strong Relationships: Partnerships with contract farmers ensure a steady supply of raw materials, even in the off-season.
Efficient Supply Chain: Long-term relationships with customers due to a streamlined supply chain.
Quality Control: Various certifications and quality assurances that attract global clients.
Advanced Facilities: The company’s focus on cost-competitive in-house processing.
Global Reach: Serving international customers with a diverse product portfolio.
Proven Financial Performance: A scalable business model with strong financial results.
Company Financials
Freshara Agro Exports Limited has shown significant growth in both revenue and profit over the years. The company’s revenue increased by 56%, while profit after tax (PAT) surged by 140% between FY2023 and FY2024.
Financial Highlights:
Financial Year
Revenue (₹ Lakhs)
Profit After Tax (₹ Lakhs)
FY2022
11,840.68
97.36
FY2023
12,700.22
908.2
FY2024
19,801.58
2,182.41
Sept 2024 (6 months)
10,746.11
1,137.81
Key Performance Indicators (As of Sept 2024):
Market Cap: ₹272.59 Cr
ROCE: 12.31%
Debt/Equity: 2.77
RoNW: 29.67%
PAT Margin: 10.98%
Objects of the Freshara Agro Exports IPO
The company plans to use the proceeds from the IPO for:
Capital Expenditure: To upgrade and expand its facilities.
Working Capital: To support the company’s operations and growth.
General Corporate Purposes: For overall business activities.
Issue Expenses: To cover IPO-related expenses.
Frequently Asked Questions (FAQs)
1. What is the Freshara Agro Exports IPO price band?
The price band for the Freshara Agro Exports IPO is set between ₹110 and ₹116 per share.
2. When does the Freshara Agro Exports IPO open and close?
The IPO opens on October 17, 2024, and closes on October 21, 2024.
3. What is the minimum investment required for Freshara Agro Exports IPO?
For retail investors, the minimum investment is ₹139,200 for 1 lot (1,200 shares).
4. Who are the promoters of Freshara Agro Exports Limited?
The promoters are Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, and Mrs. Asma Syed.
5. When will the shares of Freshara Agro Exports be listed?
The tentative listing date for Freshara Agro Exports shares is October 24, 2024 on the NSE SME.
