The Freshara Agro Exports IPO opened for subscription on October 17 and has seen remarkable interest from investors. With a strong demand from retail investors, the IPO was booked over 12 times on its first day. This impressive response highlights the eagerness among investors to invest in IPOs.
Subscription period and offer size
The subscription window for the Freshara Agro Exports IPO is set from October 17 to October 21. The IPO is a book-building issue valued at ₹75.39 crore, consisting entirely of a fresh issue of 64.99 lakh shares. Given the high level of demand, it is a prime opportunity for those looking to invest in IPOs.
Subscription details
On the first day of bidding, the Freshara Agro Exports IPO received applications for over 5 crore shares, surpassing the 41.18 lakh shares available. By the end of the day, the overall subscription rate stood at 12.67 times, indicating significant enthusiasm among investors keen to invest in IPOs.
Retail investors particularly drove the demand, submitting applications for more than 3.56 crore shares against the allocated 20.59 lakh shares. This resulted in a staggering 17.31 times subscription in the retail category alone.
The non-institutional investors (NIIs) segment also showed strong interest, with a subscription of 11.11 times. This segment saw applications for over 98.19 lakh shares compared to the 8.83 lakh shares available for bidding.
Qualified institutional buyers (QIBs) subscribed to their portion 3.5 times, submitting bids for 41.25 lakh shares against the 11.76 lakh shares reserved for them. This widespread interest across all investor categories further emphasises the appeal of investing in this IPO.
Important dates and allotment
The subscription period for the Freshara Agro Exports IPO will close on October 21. The allotment of shares is expected to be finalised on October 22, with refunds for unsuccessful bidders being processed by October 23. Successful bidders will see shares credited to their Demat accounts on the same day. The shares are set to debut on the NSE SME platform Emerge, with a tentative listing date of October 24.
Financial performance
Freshara Agro Exports has shown impressive financial growth. For the quarter ending September 30, the company reported a revenue of ₹107.46 crore and a profit after tax of ₹11.37 crore. The company's net worth stood at ₹38.34 crore.
In FY24, Freshara Agro Exports recorded a remarkable 55% year-on-year increase in revenue, reaching ₹198.01 crore, up from ₹127 crore in FY23. The profit after tax also surged by over 140%, hitting ₹21.82 crore compared to ₹9.08 crore in the previous financial year. Furthermore, the net worth increased over 221% to ₹59.58 crore from ₹18.55 crore in FY23, making it an attractive option for investors looking to invest in IPOs.
Management and use of proceeds
Freshara Agro Exports' IPO is managed by TGYR Capital Advisors Private Limited, with Purva Sharegistry India Pvt Ltd serving as the registrar for the issue. The company's market maker for the NSE SME issue is Giriraj Stock Broking.
The promoters of Freshara Agro Exports include Junaid Ahmed, Iqbal Ahmed Khudrathullah Mohammed, and Asma Syed, who collectively held an 86.5% stake before the IPO. If you choose to invest in the IPO, the funds raised from this public issue will be used for capital expenditures, working capital requirements, general corporate purposes, and issue expenses.
For android only