Freshara Agro Exports IPO, an SME one, will open on October 17, 2024, and its closing date is October 21, 2024. The company was established in 2015 and is now a leading producer and exporter of processed pickles and gherkins. With a product basket of over 10 products, it exports its products to more than 50 countries. Let’s deep dive into all the Freshara Agro Exports IPO details, financials, listing date, and GMP.
Freshara Agro Exports IPO Date 2024
The important dates related to Freshara Agro Exports IPO are:
- Bidding Opening Date: October 17, 2024
- Bidding Closing Date: October 21, 2024
- Allotment Date: October 22, 2024
- Initiation of Refunds (in case of less or no allotment): October 23, 2024
- Shares Credited to Your Demat Account: October 23, 2024
- Listing Date: October 24, 2024
Freshara Agro Exports Limited IPO Details
Its total issue size is ₹75.39 crores with all having a fresh issue component.
Here are the key details of this IPO:
- Freshara Agro Exports IPO Price Band: ₹110 to ₹116 per share
- Face Value: ₹10 per share
- Lot Size: 1200 Shares
- Total Issue Size and Amount: 64,99,200 shares (amounting to ₹75.39 crores)
- Fresh Issue Size and Amount: 64,99,200 shares (amounting to ₹75.39 crores)
- Listing On Exchange: NSE SME
Freshara Agro Exports IPO Proceeds
Freshara Agro Exports Limited is planning to use the money raised from the IPO in the following ways:
- Up to ₹8.79 crores for Capex. It includes machinery purchases such as tunnel pasteurizer, jar line, chimney, boiler, shrink wrapping machine, etc.
- Up to ₹56 crores for working capital needs.
- Remaining for general corporate purposes and issue-related expenses.
Freshara Agro Exports IPO Reservations
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Freshara Agro Exports IPO reservations to different investors include the issue of 64,99,200 equity shares. After removing the market maker share, it has 58,80,000 equity shares for net issue to the public.
| Participants | Equity Shares | % of the Net Issue |
|---|---|---|
| QIB | Not more than 29,37,600 Equity Shares | Not more than 50% of the net issue |
| NII | Not less than 8,83,200 Equity Shares | Not less than 15% of the net issue |
| Retail Investors | Not less than 20,59,200 Equity Shares | Not less than 35% of the net issue |
Freshara Agro Exports IPO Shareholder Quota: As per the RHP filing, there is no shareholder quota in this IPO.
Freshara Agro Exports Limited: Pre and Post Size
- Outstanding Equity Shares Pre-Issue: 1,70,00,000 Equity Shares of face value of ₹10 each
- Outstanding Equity Shares Post-Issue: 2,34,99,200 Equity Shares of face value of ₹10 each
Freshara Agro Exports IPO Lot Size
Freshara Agro Exports IPO lot size is 1200 shares, wherein bidding can be done in further multiples. The minimum and maximum of the lot size that each category of investor can apply in this IPO are:
| Applicant Type | Lot Size | Number of Shares | Amount (in ₹) |
|---|---|---|---|
| Retail (Min) | 1 | 1,200 | 1,39,200 |
| Retail (Max) | 1 | 1,200 | 1,39,200 |
| HNI (Min) | 2 | 2,400 | 2,78,400 |
Freshara Agro Exports IPO Promoter Holding
The promoters of Freshara Agro Exports are:
- Mr. Junaid Ahmed
- Mr. Iqbalahmed Khudrathullah Mohammed
- Mrs. Asma Syed
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
- Free Demat Account
Freshara Agro Exports: Company Overview
Freshara Agro Exports is involved in the procurement, processing, and exporting of preserved Gherkins, baby corns, banderilla, chilies, bell pepper, Jalapeno, mixed vegetables, etc. It sources products directly from more than 4,000 impaneled farmers and sells processed gherkins, cucumbers, and pickled vegetables to Canada, the USA, France, Italy, Russia, China, etc. It is recognized as a 100% Export House by the Ministry of Commerce & Industry.
The company is not heavily dependent on the distributors and retailers for exporting. 70% of the products are not directly ready to eat and are supplied to the factories for processing. The remaining 30% has been supplied to the Food Brokers and Traders in the export market.
The company’s key strengths are strong relationships with farmers, an efficient supply chain, high-quality products, advanced in-house processing facilities, and a comprehensive product basket.
Freshara Agro Exports Limited Financials
Freshara Agro Exports’s key financials for different periods are as follows:
| Particulars | 30 Sep 2024 | 31 Mar 2024 | 31 Mar 2023 | YoY Change |
|---|---|---|---|---|
| Revenue | 10,746.11 | 19,801.58 | 12,700.22 | 56% |
| Profit After Tax | 1,137.81 | 2,182.41 | 908.20 | 140% |
| EBITDA | 1,866.09 | 3,561.76 | 1,749.30 | 104% |
| Assets | 16,599.73 | 28,853.09 | 8,490.64 | 240% |
| Net Worth | 3,834.58 | 5,958.45 | 1,855.49 | 221% |
| Total Debt | 10,625.22 | 17,618.10 | 4,173.89 | 322% |
*(in ₹ lakhs)
- All the key financial metrics have registered growth in FY24, with revenue at 56% YoY, PAT at 140% YoY, and EBITDA at 104%.
- Assets have grown by 240% in FY24 from FY23, but at the same time, total debt also experienced a growth of 322%.
Key Ratios of Freshara Agro Exports
The key ratios highlighting the company’s performance are:
| Particulars | 30 Sep 2024 | 31 Mar 2023 | 31 Mar 2022 | YoY Change |
|---|---|---|---|---|
| EBITDA Margin | 17.37% | 13.77% | 4.18% | 229% |
| PAT Margin | 10.98% | 7.21% | 0.87% | 729% |
| Return on Capital Employed | 12.31% | 26.77% | 8.90% | 201% |
| Return on Net Worth | 29.67% | 48.95% | 10.45% | 368% |
| Return on Equity | 0.09 | 0.65 | 0.12 | 442% |
| Debt-Equity Ratio | 2.77 | 2.25 | 3.73 | -40% |
| Debt Service Coverage Ratio | 1.83 | 5.04 | 1.12 | 350% |
| Current Ratio | 1.12 | 1.12 | 1.02 | 10% |
| Inventories Turnover Ratio | 0.40 | 6.06 | 11.24 | -46% |
- EBITDA and PAT margins have grown by 229% and 729% on a year-on-year basis, respectively in FY23.
- Return ratios such as ROCE, RoNW, and ROE have grown from FY22 to FY23.
- The debt-equity ratio has decreased by 40% from FY22 to FY23 which is good. While DSCR’s rise is also a good sign indicating the company’s potential in managing its debt.
- The current ratio is more than 1 which means current assets are more than current liabilities.
- Inventories turnover ratio fell by 46% YoY in FY23 which shows that the company is not able to sell the products and is accumulating inventory.
Risk Factors in Freshara Agro Exports Limited
The risk factors that the company is exposed to are as follows:
- 85-90% of the revenue is concentrated towards the sales of Gherkins in the overall product basket.
- Any deterioration in the quality of the product may impact the reputation and sales.
- Dependency on Russia for export revenue but it is facing geopolitical tension and wars with Ukraine.
- The risk of foreign exchange fluctuations can impact real earnings.
- 40-50% of the revenues from operations are dependent on the top 10 customers.
- Any stoppage, slowdown, strikes, or increase in the power tariffs in the processing/manufacturing facility may affect the business operations.
Freshara Agro Exports IPO GMP and Review
WHY SMC
- 20 Lac+ unique clients
- 33+ Years of Serving
- Advance Technical Analysis
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Freshara Agro Exports IPO GMP is ₹40 and its estimated listing price is ₹156 as of October 14, 2024 (at 15:57). With the issue price of ₹116 per share, it is expected to list at a gain of 34.48%.
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Freshara Agro Exports Limited IPO Contact Information
For inquiries related to the Freshara Agro Exports IPO details, you can contact at the following places:
Registered Office Address: Old No.3, New No.9, Puram Prakasam Road, Balaji Nagar, Royapettah, Chennai, Tamil Nadu – 600014, India
Phone: +91 44 4357 0138
Email: cs@fresharaagroexports.com
Company Website: https://www.fresharaagroexports.com/
Freshara Agro Exports IPO Registrar Details:
Registrar Name: Purva Sharegistry (India) Private Limited
Phone: 022 49614132
Email: newissue@purvashare.com
Freshara Agro Exports IPO Lead Manager Details:
Lead Manager: GYR Capital Advisors Private Limited
Phone: +91 87775 64648
Email: info@gyrcapitaladvisors.com
FAQs
1. What is the Freshara Agro Exports IPO Date 2024?
Freshara Agro Exports IPO will open on October 17, 2024, and it will close on October 21, 2024.
2. Is Freshara Agro Exports a listed company?
Freshara Agro Exports will be listed on the NSE SME platform on October 24, 2024.
3. Where will the Freshara Agro Exports IPO proceeds be used?
Freshara Agro Exports IPO proceeds will be used to buy different machinery, fulfill working capital needs, and other corporate requirements.
Reference
https://www.fresharaagroexports.com/investor-center/assets/pdfs/RHP_Freshara_Agro_Exports.pdf
Author: All Content is verified by SMC Global Securities.
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