Freshara Agro Exports IPO opens for subscription: 5 things to know before bidding

Freshara Agro Exports Limited IPO opened for subscription on Thursday, October 17. The three-day subscription window will close on October 21.

Let’s take a look at the important details of the IPO like offer size, price band, minimum investment and listing date among others.

Freshara Agro Exports IPO: Issue Size, price band and minimum investment

Freshara Agro Exports IPO is worth ₹75.39 crore. The book-building offer comprises an entirely fresh issue of 64.99 lakh shares. The price band for the NSE SME issue has been fixed at ₹110 to ₹116 per share.

Freshara Agro Exports has reserved 50% of the net offer for Qualified Institutional Buyers. As much as 35% of the net issue has been set aside for the retail investors and 15% of the net issue has been kept aside for the Non Institutional Investors (NIIs).

The retail investors, interested in applying for the NSE SME issue, can place bids for a minimum of 1,200 shares, which aggregates to an investment of ₹1,39,200. High Networth Individuals (HNIs) can apply for 2 lots, or 2,400 shares, amounting to an investment of ₹2,78,400.

Freshara Agro Exports IPO subscription opened on Thursday, October 17. The three-day bidding window is scheduled to close on Monday, October 21. Freshara Agro Exports IPO share allotment status is likely to be finalised on Tuesday, October 22.

Subsequent to the allotment of shares, refunds will be initiated for unsuccessful bidders on Wednesday, October 23, and successful bidders will receive shares in their Demat accounts the same day. Freshara Agro Exports shares will be listed on the NSE SME platform, Emerge. The tentative IPO listing date has been fixed as October 24.

Freshara Agro Exports: Financials and key clients

Freshara Agro Exports’ revenue for the quarter ended September 30, 2024 (Q2FY25) stood at ₹107.46 crore. The company’s Profit-After-Tax (PAT) for Q1FY25 stood at ₹11.37 crore and its net worth stood at ₹38.34 crore.

Freshara Agro Exports revenue increased by over 55% to ₹198.01 crore in FY24 compared to ₹127 crore in FY23. The company’s PAT advanced over 140% to ₹21.82 crore in FY24 against ₹9.08 crore in FY23. Freshara Agro Exports’ net worth increased over 221% to ₹59.58 crore compared to ₹18.55 crore in FY23.

Freshara Agro Exports is a processor and exporter of preserved Gherkins and other pickled goods to various countries across the world. The company’s key clients are from countries like Russia, United States and United Kingdom, according to the company’s DRHP. It supplies ‘not ready-to-eat’ pickled goods directly to factories for conversion into finished products. Additionally, the finished goods made by the company are supplied to food brokers and traders in the international market.

Freshara Agro Exports: Business Model

Freshara Agro Exports undertakes the procurement, processing and exporting of preserved gherkins and other pickled commodities from India to different countries of the world. The company directly sources produce from accredited farms and farmers dedicated to sustainable agricultural methodologies. After this, the company processes the procured Gherkins and other pickled vegetables within its processing facility.

Freshara Agro Exports IPO: Key strengths and weaknesses

Here’s a look at some key weaknesses of Freshara Agro Exports:

• Freshara Agro Exports revenue is dependent heavily on sale of Gherkins and an inability to anticipate and adapt to evolving consumer preferences and demand for particular products could adversely impact the business.
• The company said in its RHP that the improper storage, processing or handling of whole products of Gherkins, Baby Corns, Banderilla and other products may result in spoilage, which can negatively affect the business.
• Since a part of its revenue comes from customers located overseas, geopolitical instabilities could also impact its business.
• Freshara Agro Exports said in its RHP that its top ten customers contribute the majority of its revenues from operations and any loss of business from one or more of them could impact growth.

Here’s a look at some key strengths of Freshara Agro Exports:

• Freshara Agro Exports has a good relationship with contract farmers and other vendors ensuring availability of raw materials during off-season period, according to the RHP.
• The company has received various awards and accreditations for quality assurance and quality control of its products.
• Freshara Agro Exports has advanced in-house processing facilities which aim to give it a boost on the cost competitiveness front.
• The company claims it has a comprehensive product portfolio which enables us to serve its customers spread across the globe.

About Freshara Agro Exports Limited

Freshara Agro Exports, established in 2015, procures, processes and exports preserved Gherkins and other pickled goods. The company’s product portfolio includes gherkins, baby corn, jalapenos and other pickled vegetables. The company employed a total of 135 personnel as of September 30, 2024.