Abram Food, a Rajasthan-based FMCG company known for its “Kherliwala” brand, made its debut on BSE SME on July 01, 2025, with an underwhelming performance, listing at ₹91 per share—a 7% discount to the IPO price of ₹98. The stock further hit its lower circuit, disappointing investors who had subscribed to the issue in large numbers.

The Abram Food IPO, a fixed price issue of ₹13.29 crores, comprised solely a fresh issue of 14.28 lakh shares. The public offering opened on June 24, 2025, and closed on June 26, 2025, with the allotment finalized by June 27. The IPO had a lot size of 1,200 shares, and the minimum investment for retail investors was ₹1,17,600. High-Net-Worth Individuals were required to invest in a minimum of two lots.

Despite the weak Grey Market Premium (GMP) of ₹0, the IPO was subscribed 27.15 times, indicating robust demand. CORPORATE MAKERS CAPITAL LIMITED was the lead manager for the IPO, while KFIN TECHNOLOGIES LIMITED acted as the registrar. Giriraj Stock Broking Private Limited was the market maker.

Abram Food is engaged in the manufacturing and trading of various food and agro-based products such as Chana Dal, Flour, Besan, Multi-Grain Atta, Maida, Sooji, Spices, Edible Oils, and Cattle Feed. The company uses stone-grinding technology to preserve the nutritional content and natural flavor of its products, which reflect the “Taste of Rajasthan”.

The company's products are marketed under its established brand “Kherliwala”, widely distributed across Rajasthan, Delhi-NCR, and parts of Uttar Pradesh. Abram Food also monetizes by-products like Chana Churi, Chana Chilka, and Chana Kachri, contributing to additional revenue streams.

The funds raised via IPO will be strategically utilized—₹385 lakhs for capital expenditure related to machinery purchase, ₹670 lakhs for working capital needs, and ₹204.5 lakhs for general corporate purposes. The registered manufacturing facility located in Alwar, Rajasthan, boasts a capacity of over 4,800 MT across pulses, flours, and spices, utilizing modern, automated systems to maintain high efficiency and hygiene.

Industry Outlook:

The Indian agriculture and food processing industry is undergoing a major transformation, aided by government support, increased investments, and adoption of technology like AI, GIS, drones, and e-farming. With schemes such as PMKSY, PMFME, and MSP reforms, the sector is attracting massive FDI inflows—US$12.58 billion till March 2024.

The processed food industry alone is projected to reach US$958 billion by 2025, growing at a CAGR of 12%, with exports of food grains, spices, fruits, and marine products hitting billions in April–May 2024 alone.

With this backdrop, Abram Food positions itself as a rising player in the food processing and FMCG sector. The company intends to expand its market footprint to Haryana, Gujarat, and additional parts of Uttar Pradesh, with a focus on retail formats, online platforms, and supermarket chains. By scaling up automated production and ensuring stringent quality controls, it seeks to meet increasing consumer demand while enhancing its brand presence.

The management team, led by Mr. Brij Bhushan, brings more than four decades of experience in the industry. Under his leadership, Abram Food has built strong supplier and distributor relationships, with a network of 80 distributors managed by 5 sales personnel across its core regions.

Strengths:

• Strategic Location: Facility in Alwar enables access to major mandis like Khairthal, Bahrod, and Delhi.

• Distribution Network: 80 distributors across northern India supported by an in-house sales team.

• Product Diversification: Wide range of products from flours to oils to cattle feed ensures multiple revenue streams.

• Efficient Resource Utilization: Monetization of by-products boosts profitability and minimizes waste.

• Customer Trust: Brand “Kherliwala” enjoys customer loyalty for its quality and price competitiveness.

Business Strategies:

1. Market Expansion into new states and digital platforms.

2. Automation and Capacity Scaling to meet rising demand.

3. Quality Control and Traceability to ensure regulatory compliance and customer trust.

4. Strengthened Stakeholder Relations for efficient supply chains and sustainable growth.

Risk Factors:

• Over-reliance on Chana and Chana Dal, which forms a large part of revenue.

• Geographical concentration, with most revenue from Rajasthan and Delhi-NCR.

• Volatility in raw material prices as procurement is done via local mandis without long-term contracts.

Despite these risks, Abram Food’s diversified product portfolio, efficient operations, and strategic planning position it for long-term growth in India’s booming FMCG and food processing sector.

As the company aims to turn around from its disappointing IPO listing, investors and market watchers will closely monitor how well it utilizes its IPO proceeds, scales operations, and penetrates newer markets. The broader success will depend on macroeconomic stability, raw material availability, and effective execution of its expansion strategies.

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