Freshara Agro Exports Ltd
Complete IPO details, including price band, financials, subscription status, and key insights.
Participate in the Freshara Agro Exports 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
₹116
Per ShareLot Size
1200 Shares
Minimum Investment
₹1,39,200
Issue Size
₹75.39 Cr
Face Value
₹10
Per ShareIPO Type
Book Building - SME
Retail Quota
35%
QIB Quota
50%
NII Quota
15%
IPO Timeline
Important dates for your applying strategy.
Subscription Status
Live demand across investor categories.
Track real-time subscription levels:
*Real-time data subject to exchange updates
Freshara Agro Exports Ltd
Business model, operations, and market positioning.
Promoter Holding (Pre-Issue)
86.5%
Promoter Holding (Post-Issue)
62.57%
Issue Type
Book Building - SME
ISIN
INE0SFW01015
About the Company
Our Company are engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world. Our procurement process involves direct sourcing from accredited farms and farmers dedicated to sustainable agricultural methodologies. Our Company concludes buy-back agreements with the farmers and in turn supplies the farmers the necessary sowing material such as seeds to the identified small and marginal farmers.
Industry Overview
India is one of the largest agricultural product exporters in the world. In April-January 2024, the overall value of export of agricultural products stood at US$ 38.65 billion. In 2022-23, the agricultural exports from India stood at US$ 52.50 billion. During 2021-22, the country recorded US$ 50.2 billion in total agriculture exports with a 20% increase from US$ 41.3 billion in 2020-21. In 2022-23, rice exports from India were valued at US$ 11.14 billion, as against US$ 9.67 billion in 2021-22, registering a growth of 15.22%. Rice is the largest exported agricultural product from India and contributed to more than 20% of the total agriculture exports during the year 2022-23. India's agriculture sector primarily exports Agri & allied products, marine products, plantation, and textile & allied products. Agri & allied products exports were valued at US$ 37.3 billion, recording a growth of 17% over 2020-21.
Company History
Our Company was originally formed as a Partnership Firm under the Partnership Act, 1932 having Firm Registration Number FR/Chennai Central/845/2015 in the name and style of "Freshara Picklz Exports" pursuant to Deed of Partnership dated June 23, 2015. Subsequently our firm was converted from Partnership firm into a public limited company as per the provision of Part I Chapter XXI of the Companies Act, 2013 with the name and style of "FRESHARA AGRO EXPORTS LIMITED" and received a Certificate of Incorporation from the Registrar of Companies, Tamil-Nadu and Andaman situated at Chennai dated November 22, 2023.
Growth Strategy
- Our industry-related skills and knowledge can be leveraged to diversify our customer-base and gain wallet share with existing customers by expanding our product portfolio.
- Expand our product reach globally and increase our production capacity.
- Adding more contract-farmers in different states to ensure the availability of raw material in every season.
- Further reduce operating costs, improving operating efficiencies and deploy new technologies.
Financial Performance
Revenue, profit after tax and total assets across the last 2 reported financial years.
Revenue
Amount in ₹ crore
Profit After Tax (PAT)
Amount in ₹ crore
Total Assets
Amount in ₹ crore
Figures in ₹ crore, on a standalone basis, as reported for FY24 to FY25.
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 offer of upto 64,99,200 equity shares of face value of Rs. 10/- each ("Equity Shares") of Freshara Agro Exports Limited (the "Company" or "Freshara Agro Export" or "FAEL" or "Issuer") at an issue price of Rs. 116 per equity share (including a share premium of Rs. 106 per equity share) for cash, aggregating up to Rs. 75.39 crores ("Public Issue") out of which 6,19,200 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 116 per equity share for cash, aggregating Rs. 7.18 crores will be reserved for subscription by the market maker to the issue (the "Market Maker Reservation Portion"). The public issue less market maker reservation portion i.e. issue of 58,80,000 equity shares of face value of Rs. 10/- each, at an issue price of Rs. 116 per equity share for cash, aggregating up to Rs. 68.21 crores is hereinafter referred to as the "Net Issue". The public issue and net issue will constitute 27.66 % and 25.02 % respectively of the post-issue paid-up equity share capital of the company. The issue price is 11.6 times of the face value of the equity shares.
*Subject to approvals and market conditions.
Strengths & Risks
Key competitive advantages and factors to consider before investing.
- Good relationship with the contract farmers and other vendors ensuring availability of raw materials during off-season period.
- Support of efficient supply-chain enable us to have long-standing and deep customer relationships.
- Quality assurance and quality control of our products and as a result we received various awards and accreditations.
- Advanced in-house processing facilities with focus on cost competitiveness.
- Comprehensive product portfolio enables us to serve our customers spread across the globe.
- The company derives significant portion of its revenue from sell of Gherkins as accounted for 84.90%, 93.50%, and 90.90 of the company revenue from operations in Fiscal 2022, 2023 and 2024 respectively. An inability to anticipate and adapt to evolving consumer preferences and demand for particular products, or ensure product quality may adversely impact demand for its products and consequently the company's business, results of operations, financial condition and cash flows.
- Improper storage, processing or handling of whole products of Gherkins, Baby Corns, Banderilla, Chilies, Bell Pepper and other products may result in spoilage of, and damage to, such whole Gherkins, Baby Corns, Banderilla, Chilies, Bell Pepper and other products which may adversely affect its business prospects, results of operations and financial condition.
- Real or perceived product contamination could result in reduced sales, product liability and damage to its reputation, and subject the company to regulatory action.
- The company is highly dependent on its management team and certain management personnel, any loss of such team members or the inability to attract or retain research and development personnel may materially adversely affect its business performance and research and development efforts.
- The company derives a significant portion of its revenue from customers located overseas, including in Russia, which is currently involved in a war with Ukraine.