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 Metrics | FY 2024 (up to Sep) | FY 2024 | FY 2023 | FY 2022 |
Assets | Rs. 16,599.73 lakh | Rs. 28,853.09 lakh | Rs. 8,490.64 lakh | Rs. 5,887.64 lakh |
Revenue | Rs. 10,746.11 lakh | Rs. 19,801.58 lakh | Rs. 12,700.22 lakh | Rs. 11,840.68 lakh |
Profit After Tax | Rs. 1,137.81 lakh | Rs. 2,182.41 lakh | Rs. 908.2 lakh | Rs. 97.36 lakh |
Net Worth | Rs. 3,834.58 lakh | Rs. 5,958.45 lakh | Rs. 1,855.49 lakh | Rs. 931.58 lakh |
Total Borrowing | Rs. 10,625.22 lakh | Rs. 17,618.1 lakh | Rs. 4,173.89 lakh | Rs. 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.
- 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.