On October 24, 2024, Freshara Agro Exports made a remarkable debut on the NSE SME, listing at ₹135 per share, which is a 16.3% premium over its IPO price of ₹116. This debut reflects strong investor sentiment and the company's potential within the agro-export sector, particularly in the procurement and processing of preserved gherkins and pickled commodities. Freshara Agro Exports operates by sourcing directly from accredited farms, ensuring sustainable agricultural practices, and engaging in buy-back agreements to support small farmers by providing them with necessary sowing materials.

The IPO raised ₹75.39 crores, entirely from a fresh issue of 64.99 lakh shares. The subscription period ran from October 17 to October 21, 2024, with an allotment finalized on October 22, 2024. Notably, the Grey Market Premium (GMP) for the IPO suggested a potential listing gain of ₹35, reflecting positive expectations based on the company's financial performance.

Strong Investor Demand

As of October 21, 2024, the Freshara Agro Exports IPO exhibited an overwhelming response, being subscribed 205.98 times on its third day of the subscription period. This high level of interest is indicative of the company's growth potential and investor confidence. GYR Capital Advisors Private Limited served as the book-running lead manager for the IPO, ensuring a well-coordinated process for potential investors.

Focus on Sustainable Practices

Freshara Agro Exports' business model emphasizes direct procurement from accredited farms. The company collaborates with small and marginal farmers, enabling them to cultivate gherkins and other pickled products. By supplying seeds and materials through buy-back agreements, Freshara Agro Exports ensures that farmers are supported and the quality of products meets international standards.

The management team, led by Mr. Junaid Ahmed and Mr. Iqbalahmed Khudrathullah Mohammed, brings over nine years of collective experience in the gherkins and pickled vegetables export sector. Their expertise is expected to drive the company’s growth and operational efficiency.

Financial Overview

Freshara Agro Exports has shown promising financial performance in recent years. For the fiscal years ending 2021-22 and 2022-23, the company reported revenues of ₹11,840.68 lakhs and ₹12,700.22 lakhs, respectively. The revenue for the period ending January 23, 2024, was ₹12,476.60 lakhs. The company's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) also reflected a positive trend, with figures of ₹495.41 lakhs and ₹1,749.30 lakhs for the fiscal years 2022 and 2023.

In terms of profitability, the Profit after Tax (PAT) for these periods was ₹97.36 lakhs and ₹908.20 lakhs, highlighting a significant improvement. With a pre-issue Earnings Per Share (EPS) of ₹12.83 and a post-issue EPS of ₹9.29, the IPO showcases a pre-issue P/E ratio of 9.04x and a post-issue P/E ratio of 12.49x. The Return on Capital Employed (ROCE) stands at 10.04%, and the Return on Equity (RoE) at 36.96%, suggesting the IPO is reasonably priced.

Investment Insights

Given the company's strong financial indicators and the robust interest in its IPO, analysts recommend Freshara Agro Exports as a worthwhile consideration for risk-tolerant investors seeking both listing gains and long-term investment opportunities.

Investors looking to stay updated can check the live subscription status, the performance of the Grey Market Premium, and the status of allotments through reliable financial news platforms.

To explore more opportunities, visit our Best IPO to Apply Now - IPO List 2024, Latest IPO, Upcoming IPO, Recent IPO News, Live IPO GMP Today - Finance Saathi and stay informed with the Top News Headlines - Share Market News, Latest IPO News, Business News, Economy News- Finance Saathi.

Join our Trading with CA Abhay Telegram Channel for regular Stock Market Trading and Investment Calls by CA Abhay Varn - SEBI Registered Research Analyst & Finance Saathi Telegram Channel for Regular Share Market, News & IPO Updates.

Start your Stock Market Journey and Apply in IPO by Opening a Free Demat Account in Choice Broking FinX.