Abram Food Limited, a name increasingly associated with quality and health in the FMCG sector, is entering the capital markets with its initial public offering (IPO) opening on June 24, 2025. With a brand identity grounded in its tagline “Eat Healthy, Live Healthy”, the company blends tradition and modern nutrition to deliver Rajasthani-inspired food products, using stone-grinding technology to preserve natural flavours and nutrients.

IPO Details

The Abram Food IPO is a fixed price issue of ₹13.29 Crores, entirely comprising a fresh issue of 14.28 lakh equity shares.

• IPO Price: ₹98 per share

• IPO Lot Size: 1,200 shares

• Minimum Retail Investment: ₹1,17,600

• Minimum HNI Investment: 2 lots (2,400 shares) or ₹2,35,200

• Market Capitalization at IPO Price: ₹50.50 Crores

The IPO will close on June 26, 2025, with share allotment expected on June 27, and a tentative listing on BSE SME on July 1, 2025.

CORPORATE MAKERS CAPITAL LIMITED is acting as the book running lead manager, while KFIN TECHNOLOGIES LIMITED is the registrar. Giriraj Stock Broking Private Limited is appointed as the market maker.

Grey Market Premium (GMP)

As of June 25, 2025, the GMP for Abram Food IPO is ₹0, indicating no premium in the unlisted grey market, and suggesting flat or weak listing expectations.

While GMP does not guarantee listing price, it provides a directional view on market sentiment. The absence of grey market activity could imply lukewarm demand or pricing concerns.

Subscription Status

The IPO was subscribed 2.67 times by 11:00 AM on June 25, 2025, on the second day of the issue, reflecting moderate investor interest. However, the absence of GMP suggests that the interest may not translate into significant listing gains.

Financial Performance

Abram Food has shown a consistent upward trend in revenues and profitability, indicative of solid business execution and increasing consumer reach.

This 2-year CAGR growth in revenue and profit shows a maturing FMCG operation that has found traction in its niche market.

Valuation and Key Ratios

The company presents a balanced financial picture with strong return metrics:

• Pre-issue EPS (FY24): ₹9.05

• Post-issue EPS (FY24): ₹6.32

• Pre-issue P/E Ratio: 10.82x

• Post-issue P/E Ratio: 15.52x

• Industry P/E (FMCG SME peers): ~25x–30x

• ROCE (FY24): 56.02%

• ROE (FY24): 38.62%

• RoNW: 38.62%

Despite robust return ratios, the absence of GMP, fixed price issue, and limited listing buzz limit the IPO’s short-term potential.

Use of IPO Proceeds

Abram Food plans to utilize the net proceeds as follows:

1. ₹385 Lakhs for capital expenditure, including purchase of modern machinery

2. ₹670 Lakhs for working capital needs to support expanding operations

3. ₹204.50 Lakhs towards general corporate purposes to aid growth and stability

The company’s focus on infrastructure and capacity expansion indicates its intention to scale production and reach, potentially improving future margins.

Promoter Background

The company is led by a trio of experienced promoters:

• Mr. Brij Bhushan – 49 years of experience

• Ms. Mona Singhal – 16 years

• Mr. Arpit Gupta – 20 years

Their combined FMCG and business experience offers confidence in management execution and future scalability.

Strategic Positioning

Abram Food’s product line focuses on healthy and traditional Indian food offerings, catering to a regional market segment with national expansion potential. Its brand positioning around “Taste of Rajasthan” and nutritional integrity may resonate with health-conscious, culturally aligned consumers.

Use of stone-grinding technology as a USP (unique selling proposition) sets the brand apart from modern, mass-produced FMCG offerings, allowing it to capture a niche but loyal customer base.

Verdict: Apply or Avoid?

While Abram Food Limited presents strong financials, a clear growth trajectory, and niche market appeal, there are no listing gains projected due to:

• ₹0 GMP, indicating weak grey market demand

• Fixed price issue, reducing pricing flexibility

• Lack of institutional investor anchor support, compared to larger IPOs

Recommendation:
We recommend investors to AVOID the Abram Food IPO for listing gains. Long-term investors who are bullish on the FMCG sector, particularly those focused on health and regional food trends, may consider post-listing entry based on price discovery and market sentiment.

Conclusion

Abram Food Limited’s IPO showcases a financially sound and operationally focused FMCG company with strong fundamentals. However, lack of market excitement, flat GMP, and fixed price offering signal limited listing potential.

Unless the stock lists at a discount and finds organic growth traction in the secondary market, it is best observed rather than acted upon at IPO stage.

Disclaimer:
This article is for informational purposes only and should not be considered investment advice. Always consult a certified financial advisor before making investment decisions. Investment in the stock market is subject to risks. Read all related documents carefully before investing.

The Upcoming IPOs in this week and coming weeks are Silky Overseas, Vandan Foods, Pushpa Jewellers, Cedaar Textile, Adcounty Media India, Marc Loire Fashions, Indogulf Cropsciences, Moving Media Entertainment, Valencia India, Neetu Yoshi, PRO FX Tech, Suntech Infra Solutions, Ace Alpha Tech.

The Current active IPO are Rama Telecom, Supertech EV, Sambhav Steel Tubes, HDB Financials, Abram Food, Shri Hare-Krishna Sponge Iron, Icon Facilitators, Globe Civil Projects, Ellenbarrie Indutrial Gases, Kalpataru, AJC Jewel.

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