Abram Food Limited, a fast-growing player in the processed food and FMCG segment, is currently in the spotlight as its Initial Public Offering (IPO) enters the final stages of the subscription window. The company is aiming to list on the NSE SME platform, and the Grey Market Premium (GMP) today, June 24, 2025, is reportedly between ₹12 and ₹15, showing positive sentiment from investors.

What is GMP and Why It’s Important

The Grey Market Premium (GMP) is the price at which shares are traded unofficially before they are listed on the stock exchange. While not regulated by SEBI, GMP reflects investor mood and the expected listing price based on market buzz.

In the case of Abram Food IPO, the current GMP suggests a listing gain of 18%–22% over the upper price band, which is attracting interest from retail and high-net-worth individuals (HNIs).

Abram Food IPO Key Details

• IPO Type: Fixed Price Issue (SME Segment)

• IPO Opening Date: June 21, 2025

• IPO Closing Date: June 25, 2025

• Issue Price: ₹75 per share

• Lot Size: 1,600 shares

• Minimum Investment: ₹1,20,000 (Retail Investors)

• Issue Size: ₹20.02 crore (Fresh Issue only)

• Tentative Allotment Date: June 26, 2025

• Tentative Listing Date: July 1, 2025

• Listing Exchange: NSE SME

• Lead Manager: Finshore Management Services Limited

• Registrar: Cameo Corporate Services Ltd

• Market Maker: Nikunj Stock Brokers

About the Company

Abram Food Limited, established in 2015, manufactures and markets:

• Ready-to-eat and frozen foods

• Chutneys, pickles, and condiments

• Spices and ready mixes

• Packaged Indian snacks and meal kits

The company has a strong distribution network across North and West India, and plans to use IPO proceeds to expand production capacity, improve cold chain logistics, and grow its e-commerce food vertical.

Financial Highlights

• Revenue (FY24): ₹38.4 crore

• PAT (FY24): ₹4.6 crore

• EBITDA Margin: 16.5%

• Net Profit Margin: 11.9%

• Return on Equity (ROE): 21.4%

• Return on Capital Employed (ROCE): 23.7%

• Debt-to-Equity Ratio: 0.39

These numbers reflect a healthy financial base, good margin profile, and a growing customer base across both offline and digital channels.

Why the GMP is Positive

The current GMP of ₹12–₹15 over the issue price of ₹75 suggests a potential listing price of ₹87–₹90. Several reasons are driving this premium:

• Rising interest in FMCG and packaged food IPOs

• Small issue size creating oversubscription pressure

• Strong brand identity in Tier-2 and Tier-3 cities

• Steady financial performance and growing profit margins

Moreover, the IPO is opening at a time when consumer product SMEs are receiving strong interest due to inflation resilience and repeat purchase behavior.

Peer Comparison

Abram Food competes with:

• Mrs. Bectors Food

• Prataap Snacks

• Gopal Snacks (in regional markets)

While these are large-cap or mid-cap players, Abram Food is positioning itself as a value-focused niche food brand in the SME category with room for long-term growth.

Risks to Consider

Before making a decision, investors should also consider:

• Supply chain dependencies for raw material prices

• Seasonal demand variations and shelf-life risks

• Limited export revenue, focus is mostly domestic

• Regulatory compliance in food safety and FSSAI norms

Still, the diversified product line and asset-light distribution strategy balance out many operational risks.

Conclusion

The Abram Food IPO GMP today, showing a range of ₹12–₹15, indicates positive investor sentiment and possible listing gains of 20% or more. With its focus on the fast-growing processed food industry, improving margins, and brand recall, Abram Food appears well-positioned for both short-term gains and long-term hold potential.

Recommendation: Suitable for retail investors aiming for listing gains and those interested in FMCG growth stories within the SME segment.

Disclaimer:
This article is for educational and informational purposes only and does not constitute financial advice. Investment decisions should be based on individual risk tolerance and consultation with SEBI-registered advisors. Market conditions are volatile and subject to change. Neither the author nor the platform is responsible for losses arising from use of this information.

The Upcoming IPOs in this week and coming weeks are Abram Food, PRO FX Tech, Suntech Infra Solutions, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Ace Alpha Tech, Globe Civil Projects, Sambhav Steel Tubes, Ellenbarrie Indutrial Gases, Kalpataru, HDB Financials, AJC Jewel.

The Current active IPO are  Aakaar Medical Technologies, Safe Enterprises Retail Fixtures, Mayasheel Ventures, ArisInfra Solutions, Influx Healthtech.

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