Freshara Agro Exports Limited IPO: Opens on October 17 

Freshara Agro Exports Limited is set to launch its recent IPO, offering investors an opportunity to participate in a growing company within the agro-exports sector. The IPO will be a book-built issue and include a fresh issue of shares. Investors interested in IPO investment can apply within the specified price band, with both retail and HNI quotas available. 

The company’s shares are expected to be listed on the NSE SME, providing a potential opportunity for long-term investors to benefit from its growing financial performance and market presence.

Freshara Agro Exports Limited IPO details

Freshara Agro Exports Limited aims to raise approximately ₹75.39 crores through its upcoming book-built IPO, consisting of 64.99 lakh fresh shares. The IPO opens for subscription from October 17 to October 21, 2024, with allotments expected on October 22 and listing on the NSE SME scheduled for October 24.

The price band is set at ₹110 to ₹116 per share, with a minimum lot size of 1,200 shares, requiring a minimum investment of ₹139,200 for retail investors. HNIs must apply for at least 2,400 shares, totalling ₹278,400. The retail quota is 35%, while 50% is reserved for QIBs and 15% for HNIs.

In 2024, Freshara Agro reported revenues of ₹198.02 crores, up from ₹127.00 crores in 2023, with profits increasing from ₹9.08 crores to ₹21.82 crores. 

Freshara Agro IPO timeline (Tentative)

To ensure timely application and informed decision-making, investors should carefully review the Freshara Agro Exports Limited IPO timeline.

About Freshara Agro Exports Limited

Established in 2015, Freshara Agro Exports Limited specialises in exporting pickled gherkins, jalapeños, baby corn, and other vegetables. With an annual capacity of 29,200 MT, the company sources raw produce from farmers in Tamil Nadu, Karnataka, and Andhra Pradesh. Its products are packaged in food-grade drums, jars, and tins for global distribution. Freshara Agro holds accreditations from organisations like FSSAI, FDA, and APEDA, ensuring compliance with international quality standards.

Freshara Agro Exports Limited Financials

Freshara Agro Exports Limited experienced significant growth, with revenue surging 56% and profit after tax (PAT) soaring 140% in the fiscal year ending March 31, 2024 compared to the previous year.

Freshara Agro Exports Limited IPO: Strengths

1. Strong relationships with contract farmers and suppliers ensure consistent raw material availability, even during off-seasons.
2. An efficient supply chain supports long-term customer relationships and enhances service delivery.
3. The company emphasises quality assurance, resulting in numerous awards and accreditations for product excellence.
4. Advanced in-house processing facilities contribute to cost competitiveness and operational efficiency.
5. A diverse product portfolio allows Freshara to meet the needs of customers across global markets.
6. Proven financial performance, coupled with a scalable business model, positions the company for growth.
7. Experienced management and a dedicated team of 135 employees drive strategic initiatives and operational success.

Freshara Agro Exports Limited IPO: Challenges

1. Freshara Agro Exports Limited has faced stagnant profit growth, with a 0% increase over the past three years.
2. The company has yet to experience revenue growth, also remaining at 0% during the same period.
3. Poor returns on equity (ROE) and return on capital employed (ROCE), both at 0%, reflect underlying performance issues.
4. A high debt-to-equity ratio of 3.99 raises concerns about financial leverage and sustainability.

Should You Invest in Freshara Agro Exports Limited?

Investing in Freshara Agro Exports Limited offers a mixed opportunity. The company benefits from strong supplier relationships, quality assurance, advanced processing capabilities, and an experienced management team. However, its stagnant profit and revenue growth over the past three years, coupled with a high debt-to-equity ratio, raise concerns about financial stability. Prospective investors should weigh these strengths against the challenges and consider their risk tolerance before making a decision.

Key takeaways

Freshara Agro Exports Limited is gearing up for its initial public offering (IPO), aiming to raise approximately ₹75.39 crores through a book-built issue. This upcoming IPO opens for subscription from October 17 to October 21, 2024, with shares priced between ₹110 and ₹116. Retail investors are supposed to invest a minimum of ₹139,200, while HNIs must invest ₹278,400. 

Freshara Agro reported significant revenue growth from ₹127.00 crores in 2023 to ₹198.02 crores in 2024. Although the company has strong supplier relationships and a diverse product portfolio, it faces challenges like stagnant growth and a high debt-to-equity ratio. 

FAQs

1. Is Freshara Agro Exports Limited an SME IPO?

Yes, the Freshara Agro Exports Limited IPO is classified as an SME IPO, targeting the SME segment of the stock market. This is an opportunity for investors to engage in a growing company within the agro-exports sector.

2. What is the Freshara Agro Exports Limited IPO review?

The Freshara Agro Exports Limited IPO review highlights the company’s strong supplier relationships and diverse product portfolio. However, it also notes challenges such as stagnant growth and a high debt-to-equity ratio. Investors should weigh these factors carefully.

3. What details should investors know about the Freshara Agro Exports Limited IPO SME?

The Freshara Agro Exports Limited IPO SME aims to raise ₹75.39 crores through a book-built issue. The IPO opens for subscription from October 17 to October 21, 2024, with a price band set between ₹110 and ₹116 per share.