Freshara Agro Exports Limited IPO

Explore Freshara Agro Exports Limited IPO insights. Get IPO dates, trends, and make informed investment decisions.
Freshara Agro Exports Limited IPO
3 mins read
15-October-2024
The Freshara Agro Exports Limited IPO is set to open for subscription from October 17, 2024, offering investors an exciting opportunity in the agro-export sector. Freshara, a key player in processing and exporting preserved vegetables like gherkins, baby corn, and jalapenos, is raising funds through this IPO to fuel its expansion. In this article, we break down the essential details of the Freshara Agro IPO to help beginner investors understand the offering.

Freshara Agro Exports Limited IPO details

The IPO will consist entirely of a fresh issue of 64,99,200 equity shares with a total issue size of Rs. 75.39 crore. The price band is set between Rs. 110 and Rs. 116 per share, and investors can apply in lots of 1,200 shares, with a minimum investment of Rs. 1,32,000.

Offer structure

Freshara Agro Exports is offering the IPO through a 100% Book Built Issue. The proceeds will be allocated toward funding capital expenditure, working capital needs, and general corporate purposes. The issue is structured with 50% reserved for QIBs, 15% for Non-Institutional Investors (NIIs), and 35% for Retail Individual Investors (RIIs).

Why is Freshara Agro Exports going public?

The company is raising funds to support its ongoing expansion. With growing demand for its pickled products and a strong presence in international markets, Freshara aims to strengthen its financial position, increase production capacity, and enhance supply chain efficiency. The IPO will help it meet these objectives while also funding general corporate expenses and working capital requirements.

About Freshara Agro Exports Limited

Established in 2015, Freshara Agro Exports Limited is headquartered in Chennai, Tamil Nadu. The company sources raw produce through contract farming in Tamil Nadu, Karnataka, and Andhra Pradesh, processing preserved vegetables for export. Its primary offerings include:

  • Pickled gherkins, baby corn, and jalapenos
  • Various packaging formats: industrial, food, and retail
  • Global presence: exports to North America, Europe, and other regions

Freshara Agro Exports Limited’s financial performance

Financial MetricsFY 2024 (up to Sep)FY 2024FY 2023FY 2022
AssetsRs. 16,599.73 lakhRs. 28,853.09 lakhRs. 8,490.64 lakhRs. 5,887.64 lakh
RevenueRs. 10,746.11 lakhRs. 19,801.58 lakhRs. 12,700.22 lakhRs. 11,840.68 lakh
Profit After TaxRs. 1,137.81 lakhRs. 2,182.41 lakhRs. 908.2 lakhRs. 97.36 lakh
Net WorthRs. 3,834.58 lakhRs. 5,958.45 lakhRs. 1,855.49 lakhRs. 931.58 lakh
Total BorrowingRs. 10,625.22 lakhRs. 17,618.1 lakhRs. 4,173.89 lakhRs. 3,479.1 lakh


Strength and risks of Freshara Agro Exports

While the IPO presents a solid investment opportunity, potential investors should also consider the associated strengths and risks.

Strength of Freshara Agro Exports Limited

  • Strong export network: Freshara exports to over 20 countries globally.
  • Diverse product portfolio: The company offers a wide range of pickled vegetables.
  • Established contract farming model: Ensures consistent supply of raw materials.
  • Accreditations: Including FSSAI, FDA, and APEDA certifications.
Top risks to consider before applying for the Freshara Agro Exports IPO

  • High debt-to-equity ratio: Freshara's current debt-to-equity ratio stands at 2.77, which may pose financial risks.
  • Dependence on exports: Any disruption in international trade could impact revenue.
  • Fluctuations in raw material prices: Price volatility in agricultural produce could affect profit margins.

Conclusion

The Freshara Agro Exports IPO offers a unique opportunity for investors to gain exposure to a fast-growing company in the agro-export sector. With a robust international presence and a scalable business model, Freshara is poised for continued growth. However, the risks, particularly around the company's debt levels and export dependency, must be considered before making an investment decision.

Frequently asked questions

How to apply for Freshara Agro Exports Limited IPO?
Investors can apply through ASBA or UPI-based applications via their respective stockbrokers or banks.

What is Freshara Agro Exports Limited IPO?
It is an SME IPO to raise Rs. 75.39 crore through a book-built issue.

When will the Freshara Agro Exports IPO open?
The IPO opens on October 17, 2024 and closes on October 21, 2024.

What is the IPO shares listing date?
The tentative listing date is October 24, 2024.

Who are the promoters of Freshara Agro Exports?
The promoters are Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, and Mrs. Asma Syed.

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