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Freshara Agro Exports IPO: Things Smart Investors Need to Know Before Investing

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Freshara Agro Exports Ltd, established in 2015, focuses on the procurement, processing, and export of preserved Gherkins and other pickled vegetables. The company operates through contract farming with local farmers in Tamil Nadu, Karnataka, and Andhra Pradesh. Their products are supplied globally, with 70% delivered to factories for further processing and the remaining 30% sold to international food brokers and traders.

Freshara Agro Exports has a well-established market position in the agro-export sector and has earned accreditations from global bodies like the FDA, FSSAI, and APEDA. The company's diverse product range, strong supplier relationships, and experienced management provide a foundation for future growth in the international food market.

Freshara Agro Exports IPO Details and Objectives

The Freshara Agro Exports IPO aims to raise ₹75.39 crores through a fresh issue of 64.99 lakh shares. Below are the key details:

Particulars

Details

IPO Issue Size

₹75.39 crores

Face Value

₹10 per share

Price Band

₹110 to ₹116 per share

Lot Size

1200 shares

Total Issue Size

64,99,200 shares

Listing At

NSE SME

Purpose of the IPO

  • Capital Expenditure: To enhance the company’s processing and storage facilities.
  • Working Capital Requirements: For operational growth and expansion.
  • General Corporate Purposes: Strengthening overall business operations.

Timeline of Freshara Agro Exports IPO

Event

Date

IPO Opens

October 17, 2024

IPO Closes

October 21, 2024

Basis of Allotment

October 22, 2024

Initiation of Refunds

October 23, 2024

Credit of Shares

October 23, 2024

Listing Date

October 24, 2024

Pricing and Lot Size of Freshara Agro Exports IPO

Price Band for the IPO

  • ₹110 to ₹116 per share.

Minimum Lot Size and Application Details

  • Lot Size: 1200 shares.
  • Minimum Investment for Retail Investors: ₹139,200.
  • Minimum Investment for HNI: ₹278,400 (2 lots).

How to Apply for the Freshara Agro Exports IPO?

Online Application Process

 Step 1: Log in to your Bajaj Broking trading account linked to your Demat account.
 Step 2: Navigate to the IPO section and select " Freshara Agro Exports IPO."
 Step 3: Choose the number of shares and the price within the specified range.
 Step 4: Complete the UPI mandate or ASBA process to block the required funds.
 Step 5: Submit your application.

Financial Health and Performance

Key Financial Metrics:

  • Revenue Growth: Freshara Agro Exports saw a 56% increase in revenue between FY 2023 and FY 2024, reflecting strong demand for its pickled products.
  • Profit After Tax (PAT): The company’s PAT surged by 140%, demonstrating improved operational efficiency and cost management.
  • Assets: Total assets grew significantly from ₹8,490.64 lakhs in March 2023 to ₹28,853.09 lakhs in March 2024, showcasing expansion in the company's asset base.
  • Net Worth: Net worth has more than tripled, rising from ₹1,855.49 lakhs in March 2023 to ₹5,958.45 lakhs in March 2024.
  • Borrowings: Freshara Agro’s borrowing increased to ₹17,618.1 lakhs by March 2024, indicating reliance on external debt for expansion.

Recent Performance and Growth Prospects:

  • Freshara Agro Exports’ diverse product range and established presence in the global market have helped fuel its revenue growth.
  • The company is positioned well for further expansion due to increasing demand in international markets for pickled and preserved vegetables.
  • Strategic investment in infrastructure and processing capabilities is likely to enhance operational efficiency and drive further growth.
  • Freshara Agro Exports is focusing on new markets and product lines, which are expected to contribute to sustained growth in the upcoming years.

Investment Risks and Opportunities

Potential Risks of Investing in the IPO

  • High Debt: The company's debt-to-equity ratio is 2.77, which may pose a financial risk.
  • Market Risk: Agricultural export demand can fluctuate based on international market conditions.
  • Currency Risk: Exposure to foreign exchange risks due to global operations.

Opportunities and Growth Potential

  • Rising Demand: Global demand for preserved and pickled foods is increasing, especially in Europe and the Middle East.
  • Product Diversification: The company’s introduction of new product categories like jalapenos and baby corn offers growth opportunities.

Key Performance Indicator (KPI)

KPI

Value

ROCE

12.31%

Debt/Equity Ratio

2.77

Return on Net Worth (RoNW)

29.67%

PAT Margin

10.98%

EPS Pre-IPO

₹12.84

EPS Post-IPO

₹9.68

Freshara Agro Exports IPO Registrar

Registrar

Contact Details

Purva Sharegistry (India)

+91-022-4961-4132, newissue@purvashare.com

Freshara Agro Exports IPO Lead Managers

Lead Manager

Contact Person

GYR Capital Advisors Pvt Ltd

Mr. Ankit Kesharwani, +91 877 756 4648

Conclusion

Freshara Agro Exports IPO offers an opportunity for investors looking to invest in a high-growth agro-export company. The IPO aims to fund its expansion and infrastructure development, making it a potential fit for those seeking exposure to India's growing agricultural export market.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://bit.ly/3Tcsfuc

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Frequently Asked Questions

What is the Freshara Agro Exports IPO date & price?

Answer Field

The Freshara Agro Exports IPO will open for subscription on October 17, 2024, and close on October 21, 2024. The price band for the IPO is set between ₹110 to ₹116 per share.

What is the Freshara Agro Exports IPO and why is it significant?

Answer Field

The Freshara Agro Exports IPO is a book-built issue of ₹75.39 crores, offering fresh equity shares. This IPO is significant as it will help the company fund capital expenditures, expand operations, and strengthen its position in the agro-export market.

What is the price band for the Freshara Agro Exports IPO, and how was it determined?

Answer Field

The price band for Freshara Agro Exports IPO is ₹110 to ₹116 per share. It was determined based on the company's financial performance, market demand, and consultation with the lead managers of the issue.

What are the key risks and rewards of investing in the Freshara Agro Exports Ltd IPO?

Answer Field

The key risks include a high debt-equity ratio and market volatility. On the other hand, rewards include strong revenue growth, an expanding global market presence, and potential future profits as the company scales operations.

When will the Freshara Agro Exports IPO shares be listed?

Answer Field

The Freshara Agro Exports IPO shares are expected to be listed on the NSE SME platform on October 24, 2024, subject to final confirmation.

What documents should I review before investing in the Freshara Agro Exports IPO

Answer Field

Investors should carefully review the Red Herring Prospectus (RHP), financial statements, and risk factors section before making any investment in the Freshara Agro Exports IPO.

What are the lock-up period details for the Freshara Agro Exports Ltd IPO

Answer Field

Anchor investors in the Freshara Agro Exports IPO will have a lock-up period of 30 days for 50% of shares, ending on November 21, 2024, and 90 days for the remaining shares, ending on January 20, 2025.

Will Freshara Agro Exports IPO pay dividends?

Answer Field

Freshara Agro Exports Ltd has not yet disclosed any specific dividend policy in relation to the IPO. Future dividends will depend on the company’s financial performance and board decisions.

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