Freshara Agro Exports Limited is coming up with an IPO with a fresh issue of 64,99,200 shares worth INR 75.31 crores. The company aims to meet capital expenditure, fund the working capital requirement, and general corporate purposes.

Freshara Agro IPO – Important Dates

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Freshara Agro Exports Limited IPO  – Company Profile

Freshara Agro is engaged in the procurement, processing, and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world.  Gherkins and other pickled vegetables are processed in the processing facility situated in Tirupattur District, Tamil Nadu. The company has been recognized as a 100% Export House by the Ministry of Commerce & Industry, Government of India.

In the export market, the company is not dependent on distributors and retailers. 70% of the products are “not ready to eat” and are supplied directly to factories that re-process the products and convert them to finished goods. The remaining 30% of the products are supplied to Food Brokers and Traders in the international market. There may be a very small number of distributors in this entire supply chain. 

Freshara Agro Ltd IPO Fundamental Analysis 

Freshara Agro demonstrates strong growth in revenue, profitability, and equity, making it an attractive option. However, the high debt-equity ratio is a concern, and investors should assess their risk tolerance regarding leverage.

1. Revenue Analysis:

• Revenue Growth:
  • FY2023 revenue stood at ₹12,599.45 lakhs, which increased to ₹19,378.65 lakhs in FY2024, reflecting a significant 53.8% growth.
  • In the first 6 months of FY2025, revenue reached ₹10,365.55 lakhs, indicating solid revenue momentum, though the pace of growth may be slowing compared to FY2024.

2. Expense Management:

• Expense Growth:
  • Expenses increased from ₹11,317.08 lakhs in FY2023 to ₹16,692.87 lakhs in FY2024, growing by 47.5%, slightly lower than the revenue growth, suggesting improved operational efficiency.
  • For the first 6 months of FY2025, expenses amounted to ₹9,219.59 lakhs, indicating that the company is controlling costs efficiently as it scales.

3. Profitability Metrics:

• Profit After Tax (PAT):
  • PAT rose from ₹908.20 lakhs in FY2023 to ₹2,182.41 lakhs in FY2024, reflecting a strong growth of 140.3%.
  • For the first 6 months of FY2025, PAT stood at ₹1,137.81 lakhs, suggesting continued profitability but at a more moderate pace.
• Earnings Per Share (EPS):
  • EPS increased from ₹5.34 in FY2023 to ₹12.83 in FY2024, a significant improvement.
  • In the first half of FY2025, EPS was ₹6.69 (not annualized), indicating continued solid earnings.

4. Equity and Net Asset Value (NAV):

• Equity Growth:
  • Equity rose from ₹1,855.49 lakhs in FY2023 to ₹2,696.77 lakhs in FY2024, and further to ₹3,834.58 lakhs by September 2024, reflecting strong equity capital growth.
• NAV per Equity Share:
  • NAV per share grew from ₹10.91 in FY2023 to ₹15.86 in FY2024, and reached ₹22.56 by September 2024, indicating increasing intrinsic value for shareholders.

5. Return on Net Worth (RONW):

• High Efficiency:
  • RONW was 48.95% in FY2023, showcasing excellent efficiency in generating returns.
  • The RONW for the first 6 months of FY2025 is 29.67% (not annualized), reflecting strong profitability and return on equity despite the growing equity base.

6. Financial Health Indicators:

• Debt-Equity Ratio:
  • The company’s debt-equity ratio increased from 2.25 in FY2023 to 3.99 in FY2024, which suggests a significant increase in leverage.
  • By September 2024, the debt-equity ratio decreased to 2.77, indicating that the company is managing its debt more effectively, though it remains highly leveraged.
• Current Ratio:
  • The current ratio remained consistent, at around 1.12 in FY2023, FY2024, and in the first half of FY2025, suggesting stable liquidity and the ability to meet short-term obligations.

7. Overall Financial Strength:

• Asset Growth:
  • Total assets grew substantially from ₹8,490.64 lakhs in FY2023 to ₹16,657.80 lakhs in FY2024, doubling within a year.
  • As of September 2024, total assets stood at ₹16,599.73 lakhs, remaining stable but indicating slower asset growth.
• Liability Growth:
  • Total liabilities also increased significantly, from ₹6,635.15 lakhs in FY2023 to ₹13,961.03 lakhs in FY2024, and remained high at ₹12,765.15 lakhs by September 2024, reflecting a relatively high debt load.

Freshara Agro Exports IPO Financial Analysis

Freshara Agro Exports Limited IPO Peer Comparison

Freshara Agro Exports Limited has no listed company that is specifically comparable to its business model, size, and financials. 

Freshara Agro Ltd IPO Objective

The main objective of Freshara Agro’s IPO is to utilize INR 8.79 crores for capital expenditure by purchasing machinery for vegetable product manufacturing. INR 56 crores will be allocated for working capital requirements, and the remaining funds for general corporate purposes, including operating expenses, business development, and unforeseen contingencies.

1. To meet capital expenditure: The company proposes to utilise INR 8.79 crores towards the purchase of machinery for the manufacturing of products relating to vegetables. 

2. To meet working capital requirements: The company proposes to utilise INR 56 crores towards funding its working capital requirements in the ordinary course of business.

3. General corporate purpose: The company will deploy the balance of funds for general corporate purposes, including meeting operating expenses and initial development costs for various projects, strengthening business development and marketing capabilities, and addressing unforeseen exigencies in ordinary operations.

Freshara Agro Exports IPO Risks And Challenges

Freshara Agro Exports derives 85% of its revenue from Gherkins, making it vulnerable to demand fluctuations or supply chain disruptions. A high debt-to-equity ratio and rising interest rates may impact profitability. Labor shortages, strikes, or wage demands could adversely affect operations and cash flow.

1. Almost 85% of the revenue is derived from the sale of Gherkins. Any decrease in demand or disruption of the supply chain for Gherkins can have an adverse impact on the business, results of operations, financial conditions, and cash flows.

2. The Company has a high debt-to-equity ratio in the past three Financial Years and for the stub period. The Company’s profitability may suffer due to an increase in interest rates, default by debtors, effect on demand due to micro and macroeconomic conditions, etc.

3. The business is manpower intensive and any unavailability of employees or shortage of contract labour or any strikes, work stoppages, increased wage demands by workmen, or changes in regulations governing contractual labour may have an adverse impact on the cash flows and results of operations. 

Freshara Agro Ltd IPO  – Industry & Market Potential

The food processing industry in India is still in its early stages, contributing less than 10% to the total food output. The market size of the food processing sector in India is estimated to reach US$ 1,274 billion in 2027 from US$ 866 billion in 2022. India’s agricultural and processed food exports went up to more than US$ 50 billion in 2022-23, accounting for 22.6% of the overall agri-food exports.

India exports key processed food products such as pulses, processed vegetables, processed fruits and juices, groundnuts, guar gum, cereal preparations, milled products, alcoholic beverages, oil meals, etc. In FY25 (April-June) exports of processed fruits and vegetables stood at US$ 459 million, Lives stock products at US$ 702 million, and other processed foods stood at US$ 911 million.

Freshara Agro Exports Limited IPO – Type of Offer

Freshara Agro Exports Limited is launching an IPO with an offer size of INR 75.31 crores through a fresh issue of 64,99,200 shares. The company plans to use the proceeds for capital expenditure, working capital needs, and general corporate purposes.

Freshara Agro Exports IPO Offer Size

The offer size of Freshara Agro Exports Limited’s IPO is INR 75.31 crores, comprising a fresh issue of 64,99,200 shares. The company plans to utilize the proceeds for capital expenditure, working capital, and general corporate purposes.

Freshara Agro Exports Limited IPO Allotment Structure

Freshara Agro Exports Limited’s allocation will be as follows: 50% for Qualified Institutional Buyers (QIB), 15% for Non-Institutional Investors (NII), and 35% for Retail Individual Investors (RII) according to SEBI regulations. 6,19,200 shares are reserved for market makers.

 ● Qualified Institutional Buyers (QIB): As per SEBI regulations, 50% of the shares offered through the IPO will be reserved for Qualified Institutional Buyers. These include entities such as banks, mutual funds, and insurance companies.

● Non-Institutional Investors (NII): 15% of the shares will be reserved for Non-Institutional Investors. These typically include corporate bodies or individuals investing more than Rs.2 lakhs.

● Retail Individual Investors (RII): The remaining 35% of the shares will be allotted to Retail Individual Investors. These individual investors apply for shares with a total value of less than Rs.2 lakhs. 

● Market Maker Reservation: A portion of shares, i.e. 6,19,200 shares, are reserved for market makers.

Read more about Freshara Agro Exports IPO Allotment Status 

How to apply for the Freshara Agro Exports IPO?

To apply for the Freshara Agro Exports Limited IPO through Alice Blue, follow these steps:

Open a Demat and Trading Account: If you don’t have one already, you must open a Demat and trading account with Alice Blue.

1. Check for IPO Details: Once your account is active, you can check for the Freshara Agro Exports Limited IPO details in the IPO section of the Alice Blue platform.
2. Place the Bid: Enter the number of shares you wish to buy and place your bid within the IPO’s price band.
3. Submit the Application: Confirm all your details and submit your application.

 You can apply for the Freshara Agro Exports Limited IPO at Alice Blue in just a few clicks!

Check Allotment Status: After the allotment process, you can check the allotment status to see if you have received any shares.

Please note that the allotment of shares is not guaranteed and will depend on the demand for the IPO.

Read more about Freshara Agro Exports Limited IPO Day 1 Subscription

How do you check Freshara Agro Exports IPO Allotment Status?

Checking the allotment status of an IPO in Alice Blue is usually straightforward. Please follow these general steps:

1. Log in to your Alice Blue Account: You can do this through the Alice Blue website or the trading app.
2. Navigate to the Portfolio or IPO Section: This might differ based on the layout of Alice Blue’s platform, but generally, you can find the status of your IPO application under the ‘Portfolio’ or ‘IPO’ section.
3. Find the IPO Allotment Status: Look for a sub-section called ‘IPO Allotment Status’ or something similar. This is where you can see the status of the IPOs you have applied for.
4. Select the Freshara Agro Exports Limited IPO: If you have applied for multiple IPOs, there might be a dropdown menu or a list where you can select the IPO you are interested in. Select the Freshara Agro Exports Limited IPO.
5. Check the Status: The status of your application should be displayed here. If the shares have been allocated to you, it would be mentioned here.

If you face any issues, we request you reach out to our customer support team at Alice Blue for detailed assistance. 

Apart from Alice Blue, there are other ways to check the allotment status of the Freshara Agro Exports Limited IPO:

● Registrar’s Website: Visit the website of Purva Sharegistry (India) Private Limited, the registrar of the Freshara Agro Exports Limited IPO. On the homepage, look for the ‘IPO Allotment Status’ option. You must enter your PAN, application, or Demat account number to check your allotment status. Click on the ‘Submit’ button to view your IPO allotment status.

 ● NSE SME: You can also check the allotment status on the official website of the National Stock Exchange (NSE) Small Medium Exchange (SME). You would need your application number and PAN to check the status. 

Please note that the allotment status will only be available after completing the allotment process, a few days after the IPO window closes.

Read more about Freshara Agro Exports Limited IPO Day 2 Subscription

Freshara Agro Exports Ltd IPO Offer Registrar

The registrar for the Freshara Agro Exports Limited IPO is Purva Sharegistry (India) Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.

Contact information for the registrar: 

Purva Sharegistry (India) Private Limited

9 Shiv Shakti Industrial Estate, 

J.R Boricha Marg, Lower Parel (East), 

Mumbai- 400011, Maharashtra 

Email: [email protected] 

Website: https://www.purvashare.com

Read more about Freshara Agro Exports Limited IPO Day 3 Subscription

Freshara Agro Exports IPO  – FAQs

1. What is the allotment date of the Freshara Agro Exports IPO? 

The allotment date of the Freshara Agro Exports Limited IPO is October 22, 2024. 

2. What is the price band of the Freshara Agro Exports IPO? 

The price band of the issue is INR 110-116 per share. 

3. What is the size of the Freshara Agro Exports IPO? 

The offer size of Freshara Agro Exports Limited’s IPO is INR 75.31 crores, comprising a fresh issue of 64,99,200 shares. The company plans to utilize the proceeds for capital expenditure, working capital, and general corporate purposes.

4. What is the listing date of the Freshara Agro Exports IPO? 

The listing date of Freshara Agro Exports Limited’s IPO is October 24, 2024.