Freshara Agro Exports is preparing to launch its Initial Public Offering (IPO), which is set to take place from Thursday, October 17, to Monday, October 21. Investors can subscribe to the IPO at a price band of ₹110–116 per equity share, with each share having a face value of ₹10. The IPO will require a minimum investment of 1,200 equity shares, with bids allowed in multiples of 1,200. This pricing structure makes the floor price 11 times the face value and the cap price 11.60 times the face value of the shares.
Promoters Behind Freshara Agro Exports
The IPO is backed by experienced promoters, including Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, and Mrs. Asma Syed. Their combined expertise and commitment to sustainable practices drive the company’s operations.
Core Activities of Freshara Agro Exports
Freshara Agro Exports specializes in sourcing, processing, and exporting preserved Gherkins and other pickled products from India. The company prioritizes sustainability by sourcing directly from certified farms and farmers, ensuring adherence to responsible agricultural methods. Freshara establishes buy-back contracts with farmers, providing necessary sowing materials, including seeds, to small and marginalized farmholders, thereby supporting local agriculture and communities.
Processing and Quality Assurance
Located in Tamil Nadu, Freshara’s state-of-the-art processing facility ensures the highest standards of quality for gherkins and other pickled vegetables. The products are packaged in food-grade drums, glass jars, and metal tins to maintain freshness and taste. Gherkins are not merely a condiment but are celebrated worldwide, particularly in markets across Europe, the USA, Australia, and Russia, where they complement various dishes. Furthermore, Freshara invests in its product testing capabilities through an in-house laboratory, staffed by a dedicated team focused on quality control and innovation.
Market Position
The company notes in its Red Herring Prospectus (RHP) that it has a unique position in the market, claiming there are no directly comparable companies regarding its business model, size, and financial structure. This distinction allows Freshara Agro Exports to carve out a significant niche in the competitive agro-export industry.
Financial Performance
Freshara Agro Exports Limited has demonstrated impressive growth, recording a 56% increase in revenue along with a remarkable 140% jump in profit after tax (PAT) from March 31, 2023, to March 31, 2024. This substantial growth underscores the company’s effective business strategies and market demand for its products.
IPO Allotment and Listing Details
The basis of allotment for Freshara Agro Exports IPO shares will be finalized on Tuesday, October 22. Refunds will be processed by Wednesday, October 23, with shares credited to the allottees’ Demat accounts on the same day. Investors can expect Freshara Agro Exports’ shares to be listed on the NSE SME on Thursday, October 24, creating fresh opportunities for market participation.
IPO Details at a Glance
The Freshara Agro Exports IPO consists of a fresh issue of 6,499,200 equity shares, totaling an impressive ₹75.39 crore. Notably, the IPO will not feature any offer for sale (OFS) component, marking it as a significant opportunity for investors looking to engage with the company directly.
Intended Use of Funds
The funds raised through the IPO will be strategically allocated to enhance the company’s capital expenditure, meet working capital requirements, address general corporate purposes, and manage issue-related expenses. This thoughtful allocation will support Freshara Agro Exports in scaling its operations and maintaining product quality.
Management Team for the IPO
The IPO is being managed by GYR Capital Advisors Private Limited, serving as the book-running lead manager. Purva Sharegistry India Pvt Ltd is appointed as the registrar for the IPO, while Giriraj Stock Broking will act as the market maker for Freshara Agro Exports. With such experienced partners, investors can feel confident about the process and management of the IPO.
Disclaimer
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