TGIF Agribusiness makes strong debut, shares list at 61% premium on BSE SME

Shares of TGIF Agribusiness made a strong debut on the BSE SME platform on Wednesday, May 15, despite a cautious broader market. The stock opened at ₹150 apiece, at a premium of 61.3% compared to the issue price of ₹93.

Soon after listing, the stock rallied as much as 69% to the issue price to hit a high of ₹156.8 apiece.

However, the shares pared early gains to trade 5% lower to the listing price at ₹142.5 apiece around 10:05 am.

Equity benchmark Sensex was 0.11% down at 73,027 at that time.

TGIF Agribusiness IPO opened for subscription on May 8 and concluded on May 10. The IPO was purely a fresh issue of 6.88 lakh shares. It was a fixed price issue of ₹6.39 crore.

The TGIF Agribusiness IPO witnessed strong buying interest. The IPO was subscribed 37.13 times, receiving bids for 2.42 crore shares against 6,52,800 shares offered. The retail portion saw a strong subscription of 32.92 times.

The IPO share allotment was finalised on May 13.

TGIF Agribusiness is one of the prominent players in the horticulture sector. It is engaged in the cultivation of pomegranates, dragon fruits, lemon, watermelon, chilly and teak wood.

The company started operating in 2023 in Rajasthan, with farmland covering over 110 acres in Sirohi district.

The company aims to use the proceeds from the IPO to expand its operations at the existing farms in Rajasthan. It plans to purchase agricultural equipment and an irrigation system, which will enhance the company's production.

Out of the net IPO proceeds of ₹5.4 crore, which the company expected from the IPO, it plans to use ₹2.1 crore for the purchase of agricultural equipment and irrigation system and ₹2.3 crore for meeting the expenses related to working capital requirements. It will use about ₹1.5 crore for general corporate purposes.