Freshara Agro Exports is gearing up for its Initial Public Offering (IPO), set to open for subscription on October 17, 2024, and close on October 21, 2024. This Book Built Issue aims to raise ₹75.39 Crores, with a fresh issue of 64.99 lakh shares. The pricing is set in the range of ₹110 to ₹116 per share, making it an enticing opportunity for investors, especially those interested in the agricultural sector.

The company specializes in the procurement, processing, and exporting of preserved gherkins and other pickled commodities from India to various international markets. Their procurement process emphasizes sustainability, sourcing directly from accredited farmers who follow environmentally friendly agricultural practices. Freshara Agro Exports ensures that small and marginal farmers receive the necessary sowing materials, demonstrating its commitment to community support through buy-back agreements.

Subscription Details:

The subscription period for the Freshara Agro Exports IPO will commence on October 17, 2024, and conclude on October 21, 2024. Allotment of shares is expected to be finalized around October 22, 2024, with the shares listed on the NSE SME on or about October 24, 2024. The minimum investment for retail investors is set at ₹1,39,200, requiring them to purchase a minimum lot of 1,200 shares. For High-Net-Worth Individuals (HNIs), the minimum investment is ₹2,78,400, which covers 2 lots or 2,400 shares.

GYR Capital Advisors Private Limited serves as the book-running lead manager for this IPO, while Purva Sharegistry (India) Private Limited acts as the registrar. Giriraj Stock Broking Private Limited will act as the Market Maker.

Financial Performance and Growth Potential:

Freshara Agro Exports has shown robust financial growth over the years. For the fiscal years 2021-22 and 2022-23, the company's revenue from operations stood at ₹11,840.68 lakhs and ₹12,700.22 lakhs, respectively. In the period ended January 23, 2024, the revenue was ₹12,476.60 lakhs, and for the period from January 24, 2024, to March 31, 2024, it was ₹7,324.98 lakhs. The EBITDA for the same periods reflects significant growth, indicating effective management and operational efficiency.

Profit After Tax (PAT) figures also portray a healthy financial trajectory. For 2022 and 2023, the PAT was ₹97.36 lakhs and ₹908.20 lakhs, with expectations to continue this upward trend. The pre-issue Earnings Per Share (EPS) stands at ₹12.83, while the post-issue EPS is projected to be ₹9.29. The pre-issue P/E ratio is 9.04x, with a post-issue P/E ratio of 12.49x, suggesting that the IPO is fairly priced based on current financial performance.

Grey Market Insights:

The Grey Market Premium (GMP) for the Freshara Agro Exports IPO indicates potential listing gains of around 30%, estimated at ₹35. While trading on the grey market is unregulated and does not guarantee price discovery, the demand appears favorable, making this IPO an attractive option for investors seeking short-term gains or long-term investment opportunities.

Objectives of the IPO:

The proceeds from the Freshara Agro Exports IPO will be allocated toward:

Capital Expenditure: ₹879.97 lakhs will be utilized to enhance production capabilities.

Working Capital Requirements: A significant allocation of ₹5,600.00 lakhs aims to bolster operational funds.

General Corporate Purposes: This includes various administrative and operational expenses.

Issue Expenses: Covering the costs associated with the IPO process.

The company, led by experienced promoters Mr. Junaid Ahmed and Mr. Iqbalahmed Khudrathullah Mohammed, brings over 9 years of expertise in the gherkin and pickled vegetables export business. Their leadership promises to guide the company toward sustained growth and profitability in the competitive export market.

Conclusion:

Investors interested in the Freshara Agro Exports IPO should assess their risk tolerance and investment strategy carefully. Given the company's strong financial indicators and sustainable sourcing practices, this IPO could represent a valuable opportunity for risk-tolerant investors seeking both short-term and long-term gains.

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