Freshara Agro Exports Limited - IPO

SME

Freshara Agro Exports IPO Details

Open Date

17 Oct 2024

Close Date

21 Oct 2024

Listing Date

24 Oct 2024

Issue Price

₹110 - ₹116

Face Value

₹10 per share

Lot Size

1200

GMP

₹50 (43.1%)

Issue Type

IPO

Listing On

NSE

Type

Book Built Issue

Share holding pre issue

1,70,00,000

Share holding post issue

2,34,99,200

Total Issue Size

64,99,200 shares (aggregating up to ₹75.39 Cr)

Fresh Issue

64,99,200 shares (aggregating up to ₹75.39 Cr)

Offer for Sale

Freshara Agro Exports IPO Subscription

Freshara Agro Exports IPO Application Wise Breakup

Freshara Agro Exports IPO Dates

17 Oct 2024
Opening dateOPD
21 Oct 2024
Closing dateCOD
22 Oct 2024
Basis of AllotmentBOA
23 Oct 2024
Initiation of RefundsIOR
23 Oct 2024
Credit of SharesCOS
24 Oct 2024
Listing dateLID

Freshara Agro Exports IPO Lot Size

Application	Lots	Shares	Amount
Retain Minimum	1	1200	₹139,200
Retain Maximum	1	1200	₹139,200
HNI Minimum	2	2400	₹278,400

Freshara Agro Exports IPO Reservation

Promoter Holding

Pre Issue:86.50%

Post Issue:-

Promoter Names:

Mr. Junaid Ahmed, Mr. Iqbalahmed Khudrathullah Mohammed, Mrs. Asma Syed

Documents

› Freshara Agro Exports IPO DRHP

› Freshara Agro Exports IPO RHP

› Anchor Investors in Freshara Agro Exports IPO

Freshara Agro Exports IPO Valuations

ROCE:12.31%

Debt/Equity:2.77

RoNW:29.67%

P/BV:7.31

PAT Margin (%):10.98

EPS Pre IPO:12.84

EPS Post IPO:9.68

P/E Pre IPO:9.04

P/E Post IPO:11.98

Freshara Agro Exports Limited Financial Information

Freshara Agro Exports Limited's revenue increased by 56% and profit after tax (PAT) rose by 140% between the financial year ending with March 31, 2024 and March 31, 2023.

Period Ended	30 Sep 2024	31 Mar 2024	31 Mar 2023	31 Mar 2022
Assets	16,599.73	28,853.09	8,490.64	5,887.64
Revenue	10,746.11	19,801.58	12,700.22	11,840.68
Profit After Tax	1,137.81	2,182.41	908.2	97.36
Net Worth	3,834.58	5,958.45	1,855.49	931.58
Reserves and Surplus	2,134.58	996.77
Total Borrowing	10,625.22	17,618.1	4,173.89	3,479.1
Amount in ₹ Lakhs

About Freshara Agro Exports IPO

Freshara Agro Exports Limited, formerly known as Freshara Picklz Exports, was established in 2015 and procures, processes and exports preserved Gherkins and other pickled goods from India to various countries across the world.

Under a contract farming program, the company exports raw produce from local farmers in Tamil Nadu, Karnataka, and some parts of Andhra Pradesh. 70% of the produce is "not ready-to-eat" and is supplied directly to factories for further processing and conversion into finished products. The remaining 30% is supplied to food brokers and traders in the international market. The company's products include gherkins, baby corn, jalapenos, and other pickled vegetables.

As of March 31, 2024, the company processes and exports pickled vegetables in 3 different packaging categories. The details of the 3 packaging categories: 1) Industrial packaging in food grade drums and pails; 2) Food packaging in plastic buckets and tin cans; and 3) Retail packaging in glass jars and tin cans.

The company is accredited by a number of leading organizations, including the Food Safety and Standards Authority of India (FSSAI), the United States Food & Drug Administration (FDA), Star-K Kosher, Agricultural and Processed Food Products Export Development Authority (APEDA), International Featured Standards, Brand Reputation through Compliance Global Standard (BRCGS).

Competitive strengths:

Good relationships with contract farmers and other suppliers ensure the availability of raw materials in the off-season
Supporting an efficient supply chain enables the company to maintain long-term and intensive customer relationships
Quality assurance and control of product quality, which has earned the company various awards and accreditations
Advanced in-house processing facilities with a focus on cost competitiveness
A comprehensive product portfolio that enables the company to serve its customers around the world
Proven financial performance and a scalable business model
Experienced promoter and management team

As of September 30, 2024, the company had a total of 135 employees.

Strength Of Freshara Agro Exports IPO

Risk Of Freshara Agro Exports IPO

1. 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.

2. 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.

3. Real or perceived product contamination could result in reduced sales, product liability and damage to its reputation, and subject the company to regulatory action.

4. 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.

5. 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.

6. The company completed its conversion from a Partnership firm to a public limited company on November 22, 2023. However, the accounts of the partnership firm were subsequently closed on January 23, 2024.

7. The company faces foreign exchange risks that could adversely affect its results of operations and cash flows.

8. Its top ten customers contribute majority of the company's revenues from operations. Any loss of business from one or more of them may adversely affect its revenues and profitability.

9. The discontinuation of, the loss of business with respect to, or a lack of commercial success of, a particular product for which the company is a significant supplier could affect its business and results of operations.

10. The requirement of funds in relation to the objects of the Issue has not been appraised.

Objectives Freshara Agro Exports IPO

To meet the Capital Expenditure;
Funding the working capital requirements of the company;
To meet the General Corporate Purposes; and
To meet the Issue Expenses.

Company Contact Details

Freshara Agro Exports Limited
Old No.3, New No.9,
Puram Prakasam Road, Balaji Nagar,
Royapettah, Chennai - 600014
Phone: +91 44 4357 0138
Email: cs@fresharaagroexports.com
Website: https://fresharaagroexports.com/

Registrar Contact Details

Name: Purva Sharegistry India Pvt Ltd

Phone: +91-22-31998810, +91-22-49614132

Email: newissue@purvashare.com

Website: https://www.purvashare.com/investor-service/ipo-query

Lead Mangers

GYR Capital Advisors Private Limited

Market Maker

Giriraj Stock Broking