TGIF Agribusiness IPO consists of a fresh issue of 6,87,600 shares worth INR 6.39 crores. The company aims to meet the working capital requirement, purchase agricultural equipment and irrigation systems, and for general corporate purposes.
TGIF Agribusiness Ltd IPO – Important Dates
| TGIF Agribusiness IPO Date | May 8, 2024 to May 10, 2024 |
| TGIF Agribusiness IPO Listing Date | May 15, 2024 |
| TGIF Agribusiness IPO Price | INR 93 per share |
| TGIF Agribusiness IPO Lot Size | 1200 Shares |
| TGIF Agribusiness IPO Total Issue Size | INR 6.39 crores |
| TGIF Agribusiness IPO Basis of Allotment | May 13, 2024 |
| TGIF Agribusiness IPO Initiation of Refunds | May 14, 2024 |
| TGIF Agribusiness IPO Credit of Shares to Demat | May 14, 2024 |
| TGIF Agribusiness IPO Issue Type | Fixed Price Issue IPO |
| TGIF Agribusiness IPO Listing At | BSE SME |
TGIF Agribuess Limited IPO – Company Profile
TGIF Agribusiness is prorders, horticulture company engaged in up open farming of certain fruits and vedirectly getables. The farmland is spread over an area of over 110 acres and is situated in the vicinity of three villages i.e. Ajari, Kasindra, and Kojra, all of which are located in the tehsil of Pindwara, district Sirohi, Rajasthan.
The company is mainly engaged in the farming of pomegranates, which contribute to more than 95% of the revenue from operations. Apart from the farming of pomegranates, it is also engaged in the farming and cultivation of dragon fruits and Sagwan trees.
The company currently sells the majority of its products to retailers, wholesalers, retail chain stores, hypermarkets, and mandis. Under the B2B model, all these customers visit the farms to evaluate the farm and the produce, and based on price negotiations, prices are finalized with the customers.
The company also plans to sell its produce through the B2C model under the name Direct2home service, where local customers can place orders, and the products will be picked up, packed from the farm, and delivered to the customers’ homes.
TGIF Agribusiness Limited IPO Review
| Particular | As of 31 March 2022 | As of 31 March 2023 | As of 30 November 2023 |
| Revenue (₹ in lakhs) | 202.58 | 229.69 | 170.67 |
| Equity (₹ in lakhs) | 45.82 | 175.89 | 190.00 |
| Expenses (₹ in lakhs) | 90.25 | 101.79 | 90.20 |
| Profit and Loss After Tax (₹ in lakhs) | 115.48 | 130.07 | 81.41 |
| Diluted EPS only (₹) | 6.08 | 6.85 | 4.28 |
| Return on Net Worth (%) | 252.02 | 73.95 | 42.85 |
| NAV per Equity Share (₹) | 2.41 | 9.26 | 10.00 |
| Total Assets (in lakhs) | 65.33 | 187.52 | 282.32 |
| Total Liabilities (in lakhs) | 19.51 | 11.63 | 92.32 |
| Current Ratio (in times) | 1.89 | 13.42 | 2.76 |
TGIF Agribusiness Ltd IPO Fundamental Analysis
The financial analysis of the company going for an IPO reveals steady revenue growth but a recent decline in profitability indicators like RoNW and EPS. Liquidity and solvency ratios have improved, but fluctuating revenue and expenses are concerns. Further research is advised before considering investment in the IPO.
- Revenue and Expenses:
- Revenue has shown a steady increase annually and has increased in the 8-month period on 30th November 2023.
- Expenses have followed a similar pattern.
- Profitability:
- Profit After Tax (PAT) has grown annually
- Diluted EPS has increased annually but decreased in the 8-month period.
- Efficiency:
- Return on Net Worth (RoNW) has significantly dropped annually and further decreased in the eight months.
- Net Asset Value (NAV) per Equity Share has shown consistent growth.
- Liquidity and Solvency:
- Total Assets and Equity have grown substantially annually and in the 8-month period.
- Total Liabilities initially increased but decreased in the 8-month period, improving solvency.
- The current Ratio has significantly improved annually and maintained a good level in the 8-month period.
TGIF Agribusiness Ltd IPO Peer Comparison
In a peer comparison, TGIF Agribusiness Limited shows strong RoNW and EPS, while Raghuvansh Agrofarms Limited has a high P/E. Bangalore Fort Farms Limited lags in profitability and RoNW.
| Company | Total Income (₹ in lakhs) | Face Value (₹) | P/E (₹) | EPS (Basic and Diluted) (₹) | RoNW (%) | Book value per share (₹) |
| TGIF Agribusiness Limited | 232.28 | 10 | 13.57 | 6.85 | 73.95 | 9.26 |
| Raghuvansh Agrofarms Limited | 1017.34 | 10 | 110.74 | 4.07 | 9.19 | 44.30 |
| Bangalore Fort Farms Limited | 2495.77 | 10 | 59.92 | 0.36 | 0.10 | 36.90 |
TGIF Agribusiness Limited IPO Objective
The main objectives of the IPO include purchasing agricultural equipment and enhancing irrigation systems in Rajasthan, investing INR 2.05 crores. INR 2.27 crores are allocated for working capital needs, and Rs. 153.78 lakhs for general corporate purposes to fuel business growth.
- Purchase agricultural equipment and irrigation system: The company is currently expanding its agricultural and irrigation facilities at its existing farms located in Rajasthan. The proposed purchase of equipment & irrigation facility will enhance the production of the company. For the said purpose, the company plans to utilise INR 2.05 crores.
- Working Capital requirements: The company requires additional working capital to fund its incremental working capital requirements leading to the consequent increase in profitability. The company plans to utilise INR 2.27 crores for the said purpose.
- General Corporate Purpose: The company intends to deploy the balance issue proceeds aggregating Rs. 153.78 lakhs towards the general corporate purposes to drive business growth.
TGIF Agribusiness Ltd IPO Risks And Challenges
The company’s risks include heavy reliance on pomegranate sales, vulnerability to unfavorable weather impacting operations, and historical negative cash flows affecting profitability and efficiency, posing potential challenges to financial stability.
- Pomegranates account for more than 95% of the company’s sales revenue. Excessive dependence on a single or limited number of products may have an adverse effect on the operation and result of operations.
- Unfavorable weather patterns may have an adverse effect on the business, results of operations, and financial condition.
- The company has had negative net cash flows in the past and may continue to have negative cash flows in the future. Sustained negative cash flow will affect the profitability and efficiency of the business.
TGIF Agribusiness Ltd IPO – Industry & Market Potential
India is one of the major players in the agriculture sector worldwide and it is the primary source of livelihood for ~55% of India’s population.
Foodgrain production in India touched 330.5 million metric tonnes (MT) in 2022-23 (3rd Advance Estimate). India is the world’s 2nd largest producer of food grains, fruits and vegetables and the 2nd largest exporter of sugar. A total of 521.27 LMT rice has been anticipated for procurement for the upcoming KMS 2023-24, up from 496 LMT produced during the previous KMS 2022-23.
According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. India’s agricultural and processed food products exports stood at US$ 43.37 billion in FY23 (April 2022-January 2023).
TGIF Agribusiness Limited IPO – Type of Offer
TGIF Agribusiness plans to issue 6,87,600 shares worth INR 6.39 crores in their IPO. These funds will be used for working capital, acquiring agricultural equipment and irrigation systems, and general corporate purposes.
TGIF Agribusiness Ltd IPO Offer Size
The offer size for TGIF Agribusiness IPO is 6,87,600 shares valued at INR 6.39 crores. These funds will support working capital, the purchase of agricultural equipment and irrigation systems, and general corporate purposes.
TGIF Agribusiness Ltd IPO Allotment Structure
TGIF Agribusiness Limited’s IPO allotment structure includes a category for Retail Individual Investors (RII) with investments below ₹2 lakhs, a category for other investors exceeding ₹2 lakhs, and a reservation of 34,800 shares for Market Makers.
- Retail Individual Investors (RII): These individual investors apply for shares with a total value of less than Rs.2 lakhs.
- Other than retail individual investors: Such applications where the value exceeds INR 2 lakhs.
- Market Makers Reservation: A certain percentage or number of shares is reserved for market makers. The company has set aside 34,800 shares for this purpose.
How to apply for the TGIF Agribusiness India IPO?
To apply for the TGIF Agribusiness IPO through Alice Blue, you would typically 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 TGIF Agribusiness 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 TGIF Agribusiness 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.
How do you check TGIF Agribusiness’s 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 their 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 TGIF Agribusiness 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 TGIF Agribusiness 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, it’s recommended that you contact Alice Blue’s customer support for detailed assistance. Apart from Alice Blue, there are other ways to check the allotment status of the TGIFAgribusiness IPO:
● Registrar’s Website: Visit the website of Bigshare Services Private Limited, the registrar of the TGIF Agribusiness 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.
● BSE SME: You can also check the allotment status on the official websites of the Bombay Stock Exchange (NSE) Small Medium Enterprise (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.
TGIF Agribusiness Ltd IPO Offer Registrar
The registrar for the TGIF Agribusiness IPO is Bigshare Services Private Limited. They are responsible for ensuring the IPO allotment and refund processes are carried out smoothly.
Contact information for the registrar:
BIGSHARE SERVICES PRIVATE LIMITED
Office No. S6-2, 6th Floor, Pinnacle Business Park,
Next to Ahura Centre, Mahakali CavesRoad, Andheri East,
Mumbai – 400 093, Maharashtra, India
Tel: 022 – 6263 8200
E-mail: [email protected]
Website: www.bigshareonline.com
TGIF Agribusiness IPO – FAQs
The allotment date of the TGIF Agribusiness IPO is May 13, 2024.
The price of the issue is INR 93 per share.
The offer size for TGIF Agribusiness’ IPO is 6,87,600 shares valued at INR 6.39 crores. These funds will support working capital, agricultural equipment, irrigation systems, and general corporate purposes.
The listing date of TGIF Agribusiness IPO is May 15, 2024.
