Freshara Agro Exports Limited
Freshara Agro Exports Limited(FRESHARA)
Issue Size
₹64,99,200
Issue Price
₹75.39 Cr
Price Band
₹110 – ₹116
Lot Size
1200 shares
Min. Investment
₹1,32,000
Max. Investment
₹1,39,200
Open Date
17 Oct, 2024
Close Date
21 Oct, 2024
Allotment
22 Oct, 2024
Listing
24 Oct, 2024
Max. Investment
₹1,39,200
Announced
17 Oct, 2024
Opening Date
17 Oct, 2024
Closing Date
21 Oct, 2024
Basis of Allotment
22 Oct, 2024
Initiation of Refunds
23 Oct, 2024
Credit of Shares
23 Oct, 2024
Listing Date
24 Oct, 2024
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About Freshara Agro Exports Limited IPO
Freshara Agro Exports Limited, formerly known as Freshara Picklz Exports, was established in 2015 and procures, processes and exports preserved Gherkins and other pickled goods from India to various countries across the world.
Under a contract farming program, the company exports raw produce from local farmers in Tamil Nadu, Karnataka, and some parts of Andhra Pradesh. 70% of the produce is not ready-to-eat and is supplied directly to factories for further processing and conversion in
Freshara Agro Exports Limited IPO Share Price and Issue Size
Issue Breakdown
Shareholding
Dilution: 38.2% increase in shares
Freshara Agro Exports Limited IPO Financials Health
Freshara Agro Exports Limited IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail Minimum | 1 | 1200 | ₹1,39,200 |
| Retail Maximum | 1 | 1200 | ₹1,39,200 |
| HNI Minimum | 2 | 2400 | ₹2,78,400 |
(All values in CR)
Freshara Agro Exports Limited IPO Valuation
| Metric | Value |
|---|---|
| Debt/Equity | 2.77 |
| EPS Post IPO | 9.68 |
| EPS Pre IPO | 12.84 |
| P/BV | 7.31 |
| P/E Post IPO | 11.98 |
| P/E Pre IPO | 9.04 |
| PAT Margin (%) | 10.98 |
| ROCE | 12.31% |
| RoNW | 29.67% |
(All values in CR)
Strength & Risk of Freshara Agro Exports Limited IPO
1. Good relationship with the contract farmers and other vendors ensuring availability of raw materials during off-season period.
2. Support of efficient supply-chain enable us to have long-standing and deep customer relationships.
3. Quality assurance and quality control of our products and as a result we received various awards and accreditations.
4. Advanced in-house processing facilities with focus on cost competitiveness.
5. Comprehensive product portfolio enables us to serve our customers spread across the globe.
6. Demonstrated history of financial performance and a scalable business model.
7. Experienced promoter and management team.
1. The company derives significant portion of its revenue from sell of Gherkins as accounted for 84.90%, 93.50%, and 90.90 of the company revenue from operations in Fiscal 2022, 2023 and 2024 respectively. An inability to anticipate and adapt to evolving consumer preferences and demand for particular products, or ensure product quality may adversely impact demand for its products and consequently the company's business, results of operations, financial condition and cash flows.
2. Improper storage, processing or handling of whole products of Gherkins, Baby Corns, Banderilla, Chilies, Bell Pepper and other products may result in spoilage of, and damage to, such whole Gherkins, Baby Corns, Banderilla, Chilies, Bell Pepper and other products which may adversely affect its business prospects, results of operations and financial condition.
3. Real or perceived product contamination could result in reduced sales, product liability and damage to its reputation, and subject the company to regulatory action.
4. The company is highly dependent on its management team and certain management personnel, any loss of such team members or the inability to attract or retain research and development personnel may materially adversely affect its business performance and research and development efforts.
5. The company derives a significant portion of its revenue from customers located overseas, including in Russia, which is currently involved in a war with Ukraine.
6. The company completed its conversion from a Partnership firm to a public limited company on November 22, 2023. However, the accounts of the partnership firm were subsequently closed on January 23, 2024.
7. The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.
8. Its top ten customers contribute majority of the company's revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.
9. The discontinuation of, the loss of business with respect to, or a lack of commercial success of, a particular product for which the company is a significant supplier could affect its business and results of operations.
10. The requirement of funds in relation to the objects of the Issue has not been appraised.
Freshara Agro Exports Limited IPO Subscription Status
| Investor Category | Subscription (times) | Shares Offered | Shares bid for | Total Amount (Rs Cr.) |
|---|---|---|---|---|
| Anchor | 1.00 | 17,61,600 | 17,61,600 | 20.43 |
| HNI | 511.31 | 8,83,200 | 45,15,88,800 | 5 |
| Market Maker | 1.00 | 6,19,200 | 6,19,200 | 7.18 |
| QIB | 129.22 | 11,76,000 | 15,19,64,400 | 1 |
| Retail | 180.80 | 20,59,200 | 37,23,10,800 | 4 |
| Total | 236.95 | 41,18,400 | 97,58,64,000 | 11 |
Freshara Agro Exports Limited IPO GMP
Last updated 14 Oct, 2024 · Source: aggregated grey-market dealers
| Date | IPO Price | GMP | Sub2 Sauda | Est. Listing | Est. Profit | Updated |
|---|---|---|---|---|---|---|
| 14 Oct, 2024 | 116 | ₹0▼ | -- | ₹116 (0.00%) | - | 14 Oct, 2024 |
| 15 Oct, 2024 | 116 | ₹40▼ | 36500 | ₹156 (34.48%) | - | 15 Oct, 2024 |
| 16 Oct, 2024 | 116 | ₹50▼ | 45600 | ₹166 (43.10%) | - | 16 Oct, 2024 |
| 17 Oct, 2024 | 116 | ₹75▼ | 68400 | ₹191 (64.66%) | - | 17 Oct, 2024 |
| 18 Oct, 2024 | 116 | ₹90▼ | 82100 | ₹206 (77.59%) | - | 18 Oct, 2024 |
| 21 Oct, 2024 | 116 | ₹105 | 95800 | ₹221 (90.52%) | - | 21 Oct, 2024 |
| 22 Oct, 2024 | 116 | ₹105▲ | 95800 | ₹221 (90.52%) | - | 22 Oct, 2024 |
| 23 Oct, 2024 | 116 | ₹80▲ | 73000 | ₹196 (68.97%) | - | 23 Oct, 2024 |
| 24 Oct, 2024 | 116 | ₹50 | 45600 | ₹166 (43.10%) | - | 24 Oct, 2024 |
Disclaimer: GMP is an unofficial signal from grey-market dealers and is not regulated by SEBI. Use it alongside subscription data and other research for informed decision-making.
How to Apply for Freshara Agro Exports Limited IPO
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Freshara Agro Exports Limited (FAEL) IPO
IPO Overview and Key Highlights
Freshara Agro Exports Limited (FAEL) is launching its Initial Public Offering (IPO), offering up to 64,99,200 equity shares. The company, a leading agro-exporter based in Chennai, is poised to leverage the growing demand for agricultural exports. This IPO represents a 100% fresh issue with no offer for sale from the promoters. The equity shares will be listed on the EMERGE Platform of NSE?.
Key IPO Details
- Type of Issue: 100% Book Built
- Total Issue Size: Up to 64,99,200 Equity Shares
- Face Value: Rs10 per share
- Issue Price: [To be determined]
- Listing Exchange: NSE EMERGE
- Issue Opens: October 17, 2024
- Issue Closes: October 21, 2024
Company Overview
Founded as a partnership in 2015 and converted into a public limited company in 2023, Freshara Agro Exports Limited is a growing player in the agro-export industry. The company specializes in exporting agricultural products, particularly pickles and other preserved foods. The proceeds from the IPO are expected to fund general corporate purposes and working capital requirements?.
Financial Overview
FAEL has demonstrated financial growth by expanding its operations in the export market. The company seeks to strengthen its financial position through this IPO to support its scaling needs and explore new markets.
Key Strengths of Freshara Agro Exports Limited
- Strong Market Position: FAEL is situated in a fast-growing sector, with increasing demand for Indian agricultural exports worldwide.
- Experienced Promoters: The company is promoted by Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, and Mrs. Asma Syed, who bring valuable expertise in agro-exports?.
- Focus on Quality: FAEL has built its reputation around quality control and premium products, which has led to long-term relationships with international clients.
IPO Pros and Cons
Pros
- Growth in Agro Exports: With India’s export sector expanding, FAEL is well-positioned to benefit from this trend.
- No Offer for Sale: The IPO consists entirely of fresh shares, meaning the proceeds will be used to grow the company rather than to exit by promoters.
- Listing on NSE EMERGE: Access to NSE’s SME platform offers a strategic advantage by opening up new opportunities for funding and market expansion.
Cons
- Market Risks: FAEL’s performance is closely tied to the global agro market, which is subject to price fluctuations and regulatory risks.
- First Public Issue: As this is FAEL’s first public issue, there is uncertainty around how the stock will perform post-listing?.
Risk Factors
Investors should consider various risks before investing:
- Economic Fluctuations: Any changes in global demand for agricultural products or economic downturns could impact FAEL’s revenue.
- Competition: The agro-export sector is competitive, with many players vying for market share, which could affect profitability.
Conclusion
The Freshara Agro Exports Limited IPO offers a strong opportunity for investors interested in the agro-export sector. With experienced promoters, a growing industry, and robust market demand, FAEL is positioned for growth. However, potential investors should assess the risks related to market volatility and competition before participating in the IPO.
FAQs About Freshara Agro Exports Limited Ipo
Freshara Agro Exports Limited IPO will open on 17 Oct, 2024 and close on 21 Oct, 2024. Investors must apply within this period to participate.
The Freshara Agro Exports Limited IPO price band is set between ₹110.00 and ₹116.00 per share. The minimum lot size is 1200, requiring an investment of at least ₹139200.00.
The Freshara Agro Exports Limited IPO shares are expected to be listed on 24 Oct, 2024, subject to regulatory approvals and final allotment.
You can track your Freshara Agro Exports Limited IPO application status on the registrar’s website: Link Intime or KFintech using your PAN, application number, or DP ID
The Freshara Agro Exports Limited IPO will be listed on major stock exchanges such as BSE, where you can trade shares once they are listed.