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Abram Food Ltd

Complete IPO details, including price band, financials, subscription status, and key insights.

Participate in the Abram Food Ltd IPO with full transparency. Review issue details, company fundamentals, and financial performance, and apply securely through Alice Blue.

IPO Snapshot

Key metrics and details at a glance.

Price Band

₹98

Per Share

Lot Size

1200 Shares

Minimum Investment

₹1,17,600

Issue Size

₹13.99 Cr

Face Value

₹10

Per Share

IPO Type

Fixed Price - SME

Retail Quota

50%

QIB Quota

0%

NII Quota

50%

IPO Timeline

Important dates for your applying strategy.

IPO Opens24 Jun
IPO Closes26 Jun
Basis of Allotment27 Jun
Refund Initiation30 Jun
Shares Credited30 Jun
Listing Date1 Jul
IPO Process Completed

Subscription Status

Live demand across investor categories.

Track real-time subscription levels:

*Real-time data subject to exchange updates

Qualified Institutional Buyers (QIB)0.00x
Non-Institutional Investors (NII)35.01x
Retail Individual Investors (RII)16.14x
Overall Subscription27.15x

Abram Food Ltd

Business model, operations, and market positioning.

Promoter Holding (Pre-Issue)

93.14%

Promoter Holding (Post-Issue)

67.33%

Issue Type

Fixed Price - SME

ISIN

INE0ZDY01011

About the Company

The Company is engaged in the business of manufacturing, marketing and selling of Chana, Chana Dal, Besan, Edibile Oil, Spices and flour (Atta) under our own brands "KHERLIWALA". It manufacture, trade and sell the above products to its Distributors. The brand name "KHERLIWALA" has become synonymous with quality and health in the FMCG sector, with its tagline "Eat Healthy, Live Healthy". By prioritizing traditional processing techniques and in-house manufacturing practices, the Company ensures that each product captures the authentic "Taste of Rajasthan" delighting consumers with every bite.

Industry Overview

The fast-moving consumer goods (FMCG) sector is India's fourth-largest sector and has been expanding at a healthy rate over the years as a result of rising disposable income, a rising youth population, and rising brand awareness among consumers. With household and personal care accounting for 50% of FMCG sales in India, the industry is an important contributor to India's GDP. India is a country that no FMCG player can afford to ignore due to its middle-class population which is larger than the total population of the USA. The Indian FMCG market continues to rise as more people start to move up the economic ladder and the benefits of economic progress become accessible to the general public. More crucially, with a median age of just 27, India's population is becoming more consumerist due to rising ambitions. This has been further aided by government initiatives to increase financial inclusion and establish social safety nets. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. The urban segment (which accounts for a revenue share of around 55%) is the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50% of the total rural spending.

Company History

Abram Food Limited was originally incorporated as a Private Limited Company under the name of "Sharda Edible Products Private Limited" on February 19, 2009 under the provisions of the Companies Act, 1956 with the Registrar of Companies, NCT of Delhi. Further pursuant to a resolution passed by its shareholders at Extra Ordinary General meeting held on March 28, 2014 name of the Company was changed from "Sharda Edible Products Private Limited" to "Sharda Edible Product Private Limited" and a fresh Certificate of Incorporation pursuant to change in name of the Company dated April 03, 2014 was issued by the Registrar of Companies, NCT of Delhi. Further pursuant to a resolution passed by our shareholders at Extra Ordinary General meeting held on January 20, 2016 name of the Company was changed from "Sharda Edible Product Private Limited" to "Abram Food Private Limited" and a fresh Certificate of Incorporation pursuant to change in name of the Company dated February 02, 2016 was issued by the Registrar of Companies, NCT of Delhi. Subsequently the Company was converted into Public Limited pursuant to resolution passed by its shareholders at Extra ordinary general meeting held on March 21, 2024 and a fresh Certificate of Incorporation pursuant to conversion into public limited dated July 10, 2024 issued by the Registrar of Companies, Central Processing Centre.

Products & Services

  • The Company is engaged in the business of manufacturing, marketing and selling of Chana, Chana Dal, Besan, Edible Oil, Spices and flour (Atta) under its own brands "KHERLIWALA".

Growth Strategy

  • Expand its market presence to other states in India and increase distribution reach.
  • Increase its production capacity with modern and highly automated process.
  • Focus on meeting quality standards.
  • Maintaining cordial relationships with its Suppliers, Distribution, Customers, and Employees.

Customer Base

Wholesaler and Retailer

Financial Performance

Revenue, profit after tax and total assets across the last 3 reported financial years.

Standalone figures
Financial Performance Categories

Revenue

+211%vs FY24

Amount in ₹ crore

36.0
64.0
112
FY24FY25FY26

Profit After Tax (PAT)

+130%vs FY24

Amount in ₹ crore

1.02
3.26
2.35
FY24FY25FY26

Total Assets

+262%vs FY24

Amount in ₹ crore

10.6
17.0
38.4
FY24FY25FY26

Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY26.

Objects of the Issue

How the company plans to utilize IPO proceeds.

Use of Proceeds

The funds raised through this IPO will be used for:

Initial public issue of upto 14,28,000 equity shares of face value of Rs. 10/- each of Abram Food Limited ("AFL" or the "Company" or the "Issuer") for cash at a price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share (the "Issue Price") aggregating to Rs. 13.99 crores ("the Issue"), of which 72,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share aggregating to Rs. 0.71 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The public issue less the market maker reservation portion i.e. net issue of 13,56,000 equity shares of face value of Rs. 10/- each at a issue price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share aggregating to Rs. 13.28 crores is herein after referred to as the "Net Issue". The public issue and the net issue will constitute 27.71 % and 26.32 % respectively of the post issue paid up equity share capital of the company. The face value of the equity share is Rs. 10 and the issue price is 9.8 times of the face value.

*Subject to approvals and market conditions.

Strengths & Risks

Key competitive advantages and factors to consider before investing.

Strengths and Risk Factors
  • Diversified range of services offered.
  • Strong Client base.
  • Experience of its Promoter and core management team.
  • Quality Assurance.
  • Cost competitiveness and time bound delivery.
  • The company has certain outstanding litigation against the Company, Promoters and director, an adverse outcome of which may have an adverse impact on its reputation, business and results of operations.
  • Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operate is evolving and is subject to change.
  • There is a criminal litigation against its Promoter, Arpit Gupta. In case the case is decided against its Promoter, it will cause loss of reputation of the company and that may affect its business, operations and financial conditions.
  • Its business is subject to seasonal volatility, which may contribute to fluctuations in the company results of operations and financial condition.
  • Its manufacturing facility and corporate office & warehouse(s) are located on rental premises. If the company is unable to renew such rent agreements or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.

Frequently Asked Questions

01

What is the minimum investment required to apply for this IPO?

The minimum investment depends on the lot size and the upper price band of the issue. Investors must apply for at least one lot, and the total investment amount is calculated by multiplying the lot size by the upper price band.
02

How is IPO allotment decided?

IPO allotment is determined based on demand and SEBI guidelines. If the IPO is oversubscribed in the retail category, allotment is typically done through a computerized lottery system to ensure fair distribution among eligible applicants.
03

When will I know if shares are allotted to me?

Allotment status is usually finalized a few days after the IPO closes. Once finalized, shares are either credited to your Demat account (if allotted) or the blocked funds are released back to your bank account.
04

Can I modify or cancel my IPO application?

Yes, you can modify or cancel your IPO application anytime before the IPO closing date. Changes can be made through your Alice Blue account, subject to exchange cut-off timings.
05

What happens if the IPO is oversubscribed?

If the IPO receives more applications than the number of shares available, it is considered oversubscribed. In such cases, allotment in the retail category is done on a proportionate or lottery basis, and not all applicants may receive shares.
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