The Abram Food IPO has officially opened for subscription from June 24, 2025, to June 26, 2025, presenting investors with an opportunity to invest in a company that has become synonymous with quality and health in India’s growing FMCG sector. With the tagline “Eat Healthy, Live Healthy,” Abram Food Limited aims to bring back authentic Rajasthani flavours while embracing nutritional well-being.

The IPO is a Fixed Price Issue of ₹13.29 Crores, offering 14.28 lakh equity shares at a price of ₹98 per share. With a lot size of 1,200 shares, retail investors need to commit a minimum of ₹1,17,600, while HNIs (High Net-Worth Individuals) must invest in at least two lots, totaling ₹2,35,200. The shares are expected to list on the BSE SME platform by July 1, 2025, following the allotment date scheduled on June 27, 2025.

Company Overview: Taste and Tradition Combined

Abram Food Limited stands apart in the Indian FMCG landscape for offering food products that encapsulate the "Taste of Rajasthan." The company uses traditional stone-grinding technology to preserve both natural flavours and nutritional content, appealing to health-conscious consumers.

The company has carved a niche for itself through products that blend regional authenticity with modern-day nutritional needs, reflecting in its steadily growing business operations. Promoted by Mr. Brij Bhushan (49 years’ experience), Ms. Mona Singhal (16 years), and Mr. Arpit Gupta (20 years), Abram Food Limited is led by a team with deep industry knowledge and leadership experience.

Financial Performance: Solid Growth Trajectory

The financials of Abram Food reveal a consistent upward trend. The revenue from operations has grown from ₹3,316.42 lakh in FY23 to ₹6,409.19 lakh in FY25, indicating robust expansion. The EBITDA grew from ₹102.67 lakh to ₹511.87 lakh over the same period, and the profit after tax improved substantially from ₹48.28 lakh to ₹325.55 lakh, showcasing efficient business scaling.

These figures highlight that the company has significantly strengthened its operational margins and net profitability, establishing investor confidence in its core operations.

Key ratios include:

• Pre-issue EPS: ₹9.05

• Post-issue EPS: ₹6.32

• Pre-issue P/E Ratio: 10.82x

• Post-issue P/E Ratio: 15.52x

• ROCE (FY24): 56.02%

• ROE (FY24): 38.62%

• RoNW (FY24): 38.62%

These return ratios are impressive, further reflecting operational efficiency. Despite this, the valuation appears fair rather than discounted, leading analysts to be conservative about listing gains.

IPO Objectives: Growth Through Expansion and Efficiency

The net proceeds from the IPO are planned to be deployed as follows:

1. ₹385.00 Lakhs for capital expenditure related to purchase of machinery, signifying the company’s intent to enhance production capabilities.

2. ₹670.00 Lakhs for working capital requirements, essential for sustaining operations and managing growing demand.

3. ₹204.50 Lakhs for general corporate purposes, aimed at strategic flexibility and business optimization.

This clearly outlines the company's intention to invest in capacity building and liquidity enhancement, both critical for long-term growth.

Abram Food IPO GMP: No Grey Market Action Yet

As of the latest updates, the Grey Market Premium (GMP) for Abram Food IPO is ₹0, indicating no unofficial premium in pre-listing grey market trades. This absence of GMP movement does not reflect negatively on the company’s fundamentals, but rather suggests that listing gains might be limited.

Investors should be aware that GMP is highly speculative, influenced by demand-supply forces in an unregulated grey market. As such, it should not be a deciding factor for investment.

Live Subscription Status: Lukewarm Initial Response

As per real-time subscription data on June 24, 2025, at 11:00 AM, the IPO was subscribed 0.32 times on Day 1. While early subscription volumes don’t always reflect the final outcome, the lukewarm response could be attributed to the flat GMP and investor caution.

IPO Allotment Process: Easy Online Access

The Abram Food IPO allotment will be finalized on June 27, 2025. Investors can check the allotment status through the registrar's website by:

• Selecting “Abram Food Limited IPO” from the list.

• Entering PAN/Application Number/DP Client ID.

• Clicking submit to see their status.

Listing Details and Lead Partners

The company’s shares are expected to list on the BSE SME platform on or around July 1, 2025.

• Lead Manager: Corporate Makers Capital Limited

• Registrar: KFIN Technologies Limited

• Market Maker: Giriraj Stock Broking Pvt. Ltd.

Investment Recommendation: Consider With Caution

Despite strong revenue growth, solid profitability, and experienced promoters, the IPO's lack of grey market interest and fair valuation suggest that listing gains may be muted. The Abram Food IPO appears fairly priced, with no significant upside at the listing, particularly for short-term investors.

However, long-term investors looking for consistent growth in the FMCG sector—especially in ethnic and health-focused food products—might find value in the company’s business model and operational performance.

For now, the advice is to “Avoid the IPO for listing gain” but keep it on the radar for long-term opportunities post-listing, especially if the stock corrects and offers better entry points.

Final Word

The Abram Food IPO news highlights an interesting opportunity in the FMCG IPO segment that has shown remarkable growth in India in recent years. With a focus on traditional food manufacturing using stone-grinding techniques, Abram Food Limited brings both heritage and health to the table. While the Abram Food IPO review remains cautious due to flat GMP and fair valuation, the company’s financials and future growth potential should not be ignored.

As always, investors are advised to do their own due diligence or consult a SEBI-registered financial advisor before making investment decisions.

Disclaimer:
This article is intended for educational and informational purposes only and should not be considered financial advice. Investors are encouraged to read all official documents and assess their own risk tolerance before investing. The author and platform bear no responsibility for individual investment decisions or market outcomes.

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