Freshara Agro Exports IPO Date, Details, Allotment

The Freshara Agro Exports IPO is an exciting opportunity for investors looking to delve into the agro-export sector. Scheduled to open on October 17, 2024, and close on October 21, 2024, this IPO promises significant potential for growth. Here’s everything you need to know about this offering.

Refer to Freshara Agro Exports IPO RHP for more details.

IPO Overview

Key Details

• Company Name: Freshara Agro Exports Limited
• IPO Dates: October 17, 2024 – October 21, 2024
• Allotment Date: October 22, 2024
• Listing Date: October 24, 2024
• Issue Size: ₹75.39 crores
• Total Shares: 6,499,200 shares
• Price Band: ₹110 to ₹116 per share

Lot Size

The minimum lot size for the application is 1,200 shares. This means retail investors need to invest a minimum of ₹139,200. High Net-worth Individuals (HNIs) must apply for at least 2 lots (2,400 shares), amounting to ₹278,400.

Reservation for Employees

Freshara Agro Exports has reserved a portion of the shares for employees, enhancing internal loyalty.

Company Background

About Freshara Agro Exports Limited

Founded in 2015, Freshara Agro Exports specializes in procuring, processing, and exporting preserved gherkins and other pickled goods. The company sources its products from local farmers in Tamil Nadu, Karnataka, and Andhra Pradesh.

• Main Products: Gherkins, baby corn, jalapenos, and other pickled vegetables.
• Packaging Options:

1. Industrial packaging (food-grade drums and pails)
2. Food packaging (plastic buckets and tin cans)
3. Retail packaging (glass jars and tin cans)

Competitive Advantages

Freshara Agro Exports stands out in the market due to several strengths:

1. Strong Farmer Relationships: Good ties with farmers ensure a steady supply of raw materials.
2. Efficient Supply Chain: A robust supply chain supports long-term customer relationships.
3. Quality Assurance: The company has earned multiple awards and accreditations for product quality.
4. In-house Processing: Advanced processing facilities help maintain cost competitiveness.

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Management Team

Experienced promoters lead the company:

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

Financial Performance

Key Financials

Freshara Agro Exports has shown impressive financial growth over the past few years. Here’s a snapshot:

Key Performance Indicators (KPI)

• Market Capitalization: ₹272.59 crores
• Return on Capital Employed (ROCE): 12.31%
• Return on Net Worth (RoNW): 29.67%
• Debt-to-Equity Ratio: 2.77

Objectives of the Issue

The funds raised from the Freshara Agro Exports IPO will be used for various purposes, including:

1. Capital Expenditure: Investing in equipment and infrastructure.
2. Working Capital Needs: Ensuring sufficient cash flow for daily operations.
3. General Corporate Purposes: Covering miscellaneous business expenses.
4. Issue Expenses: Managing the costs associated with the IPO.

Freshara Agro Exports IPO Review

Pros of Investing

1. Strong Financial Growth: The company has demonstrated consistent revenue and profit increases.
2. Diverse Product Range: A broad portfolio of pickled goods caters to different markets.
3. Established Relationships: Strong ties with farmers and clients enhance operational stability.
4. Quality Accreditations: Recognition from various authorities boosts credibility.
5. Growth Potential: The agro-export market is expanding, offering growth opportunities.

Cons of Investing

1. High Debt Levels: The company has a significant debt-to-equity ratio, which could pose risks.
2. Market Competition: The agro-export sector is competitive, which can impact profitability.
3. Dependence on Agriculture: Seasonal variations can affect raw material availability.
4. Regulatory Risks: Changes in export regulations can impact operations.
5. Limited Track Record: Being relatively young, the company may face challenges in long-term sustainability.

Opinion

The Freshara Agro Exports IPO presents a noteworthy opportunity for investors looking to engage in the agro-export sector. A solid business model, impressive financials, and growth potential could be a promising addition to your investment portfolio. However, weighing the risks, particularly related to debt and market competition is essential.

As the IPO date approaches, consider your investment strategy carefully. If you’re looking for exposure to the agro-export industry, this might be the right time to take a closer look at Freshara Agro Exports Limited.