Freshara Agro Exports
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 17 Oct 2024 – 21 Oct 2024
- Listing date
- 24 Oct 2024
- Face value
- ₹10 per share
- Issue price
- ₹116 per share
- Lot size
- 1,200 shares
- Issue type
- Book Building issue
- Listing at
- NSE
- Total issue size
- ₹75.39 Cr
- Market cap at offer price
- ₹273 Cr
- Promoter holding
- 86.50% → 62.58% pre-issue → post-issue
- ISIN
- INE0SFW01015
- Registrar
- Purva Sharegistry (India) Pvt.Ltd.
- Lead managers
- GYR Capital Advisors Pvt.Ltd.
- Registered office
- Old No.3, New No.9, Puram Prakasam Road, Balaji Nagar, Royapettah, Tamil Nadu
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Anchor investor · within QIB | 17,61,600 | — | — |
| Market maker | 6,19,200 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹116
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,39,200 |
| S-HNI (min) | 2 | 2,400 | ₹2,78,400 |
| S-HNI (max) | 7 | 8,400 | ₹9,74,400 |
| B-HNI (min) | 8 | 9,600 | ₹11,13,600 |
Category limits
| Category | Bid size | Cut-off |
|---|---|---|
| Retail (RII) | Up to ₹2 lakh | Yes |
| Small HNI (sNII) | ₹2 lakh – ₹10 lakh | No |
| Big HNI (bNII) | Above ₹10 lakh | No |
| Employee | Up to ₹5 lakh | Yes |
Bidding at cut-off means accepting the final issue price without naming one. Only retail and employee applicants may do so.
Anchor investors
Institutional allocation placed a day before the issue opens, carved out of the QIB portion and locked in after listing.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 12.84 | 9.68 |
| P/E (×) | 9.03 | 11.98 |
| Price to book (×) | 7.31 | — |
| Market cap | — | ₹273 Cr |
Key performance indicators
- Return on net worth
- 29.67%
- ROCE
- 12.31%
- Debt / equity
- 2.77
- PAT margin
- 10.98%
- NAV per share
- ₹22.56
- Price to book
- 7.31
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About Freshara Agro Exports
Freshara Agro Exports Limited was originally formed as a Partnership Firm under the Partnership Act, 1932, in the name of 'Freshara Picklz Exports' on June 23, 2015, and was subsequently converted into a public limited company on November 22, 2023. The Company is engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world. The procurement process involves direct sourcing from accredited farms and farmers dedicated to sustainable agricultural methodologies. The Company concludes buy-back agreements with the farmers and in turn supplies the farmers the necessary sowing material such as seeds to identified small and marginal farmers. The Company generates 99.80% of its net revenue from operations from international customers located in countries including Russia, Spain, Iraq, Chile, Italy, France, Canada, Croatia, Algeria, Saudi Arabia, Mexico, Germany, Kazakhstan, China and Belarus.
Company Analysis
from RHPFreshara Agro Exports Limited is a company engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to international markets.
Freshara Agro Exports Limited was originally formed as a Partnership Firm under the Partnership Act, 1932, in the name of 'Freshara Picklz Exports' on June 23, 2015, and was subsequently converted into a public limited company on November 22, 2023. The Company is engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world. The procurement process involves direct sourcing from accredited farms and farmers dedicated to sustainable agricultural methodologies. The Company concludes buy-back agreements with the farmers and in turn supplies the farmers the necessary sowing material such as seeds to identified small and marginal farmers. The Company generates 99.80% of its net revenue from operations from international customers located in countries including Russia, Spain, Iraq, Chile, Italy, France, Canada, Croatia, Algeria, Saudi Arabia, Mexico, Germany, Kazakhstan, China and Belarus.
Objects of the Issue
- Capital Expenditure Upto 879.97 lakhs p.26
- Working Capital Upto 5,600.00 lakhs p.26
- General corporate purposes [●] (not to exceed 25% of gross proceeds) p.26
- Capital Expenditure Up to ₹879.97 lakhs p.81
- Funding working capital requirements Up to ₹5,600.00 lakhs p.88
- General Corporate Purposes [●] p.89
- Issue Expenses [●] p.89
Issue Structure
- Total Issue
- Upto 64,99,200 Equity Shares aggregating Up to ₹ [•] lakhs
- Fresh Issue
- Upto 64,99,200 Equity Shares aggregating Up to ₹ [•] lakhs
- Offer for Sale
- Nil
- Price Band
- Price Band of a minimum price (Floor Price) of ₹ [●] and the maximum price (Cap Price) of ₹ [●]
- Lot Size
- [●] Equity Shares and in multiples thereof (Bid Lot); [●] Equity Shares and in multiples of [●] Equity Shares thereafter
- Face Value
- ₹ 10/- each
Business Model
The Company earns revenue through procurement, processing and export of preserved Gherkins and other pickled commodities. For the six-month period ended September 30, 2024, Gherkins accounted for 85.0% of revenue, with other products including Baby Corns (1.3%), Banderilla (0.9%), Chillies, Bell Pepper & Jalapeno (0.6%), and Mixed products (11.9%). The Company operates as a 100% Export Oriented Unit with total revenue denominated in foreign currencies (primarily EUR at 46.7%, USD at 40.4%, and INR at 12.5% for the six-month period ended September 30, 2024).
Business Segments
SWOT Analysis
- • Significant revenue concentration in gherkins with established market presence(p.31)
- • Direct sourcing from accredited farms with buy-back agreements to ensure supply stability(p.25)
- • Strong export presence across multiple international markets(p.39)
- • Quality assurance systems implemented across manufacturing facilities(p.32)
- • No material product liability claims or quality defects in past three years(p.36)
- • 100% Export Oriented Unit status with diversified currency exposure(p.34)
- • Strategic contract farming partnerships with small and marginal farmers ensuring consistent supply of high-quality raw materials during off-season(p.113)
- • Multiple international food safety certifications (FSSAI, FDA, Star-K Kosher, APEDA, BRCGS) enabling export to diversified global markets(p.112)
- • 100% Export House certification by Ministry of Commerce & Industry, Government of India(p.112)
- • Achieved 10% market share in Indian Gherkins export market under experienced founder leadership(p.113)
- • Direct supply model to end-customers avoiding intermediaries for 70% of production (not ready-to-eat products)(p.113)
- • Industry recognition with MSME of the Year awards for consecutive years (2023, 2024) and ASSOCHAM award (2022)(p.113)
- • Comprehensive product portfolio expanding beyond traditional pickled cucumbers to exotic vegetables and diverse customer segments(p.113)
- • In-house laboratory and rigorous quality assurance program for product testing and control(p.112)
- • Strong contract farming relationships ensuring raw material availability year-round(p.115)
- • Multi-region sourcing mitigates supply chain risks(p.115)
- • Efficient supply chain enabling long-standing customer relationships(p.116)
- • Comprehensive quality assurance with multiple certifications and awards(p.116)
- • Advanced manufacturing facilities with cost competitiveness focus(p.119)
- • Diversified global product portfolio serving multiple markets(p.120)
- • Strong demonstrated financial performance and scalable model(p.121)
- • Experienced promoter and management team with 9+ years industry expertise(p.121)
- • Data insufficient in this document section
- • High dependency on top ten customers for majority of revenues(p.35)
- • High debt-to-equity ratio indicating significant leverage(p.37)
- • Significant working capital requirements with extended debtors cycle(p.37)
- • Recent conversion from partnership to public company with limited compliance track record(p.34)
- • History of delays in GST filing and compliance lapses(p.42)
- • Promoter was previously disqualified as director for five-year period(p.35)
- • Heavy reliance on promoter and key management personnel for business operations(p.36)
- • High financial leverage with Debt-Equity ratio of 3.99 as of January 31, 2024, indicating significant reliance on borrowed funds(p.95)
- • Concentrated customer base with reliance on bulk industrial (70%) and limited diversified retail distribution channels(p.113)
- • Production concentrated in single existing facility with significant capacity utilization constraints limiting volume expansion(p.85)
- • High working capital requirements with trade receivable days at 130 days for April-September 2024, indicating extended credit cycles to international customers(p.87)
- • Low cash position with only ₹92.32 lakhs as of September 30, 2024 relative to operational scale of ₹10,365.55 lakhs revenue(p.86)
- • Inventory holding period increased to 113 days for April-September 2024, indicating challenges in inventory management(p.87)
- • High inventory concentration with rapid turnover decline in recent periods(p.115)
- • High debt-to-equity ratio indicating significant financial leverage(p.114)
- • Rising employee benefit expenses as percentage of revenue(p.136)
- • Significant deterioration in trade receivables turnover(p.115)
- • Data insufficient in this document section
- • India's significant position as major agricultural exporter with growing export values(p.25)
- • Strong growth trajectory in rice and preserved commodities exports(p.25)
- • Expansion into new international markets beyond current concentration(p.39)
- • Diversification beyond gherkins into other pickled commodities(p.25)
- • Capital expenditure and working capital funding for business expansion(p.26)
- • Planned Unit-II facility with semi-automated production line capacity of 6,000 jars/hour enabling significant volume expansion and retail product diversification(p.84)
- • Global gherkin market growing with India producing 15% of world's gherkins and increasing export demand across USA, Europe, Australia and emerging markets(p.108)
- • Indian gherkin exports growing at 12.66% CAGR in value (FY2021-22 to FY2023-24) indicating strong pricing power and market demand(p.110)
- • Expanding market for retail-packaged gherkins and pickled vegetables in jars/cans with retail segment representing only 10% of current market(p.84)
- • Large international retail chains (Walmart, Tesco, Lidl) seeking exclusive and sophisticated production capabilities creating demand for new facility(p.84)
- • Global food processing market projected to grow to US$1,274 billion by 2027 from US$866 billion in 2022 at 10% CAGR(p.106)
- • Government support for food processing through Production-Linked Incentive Scheme, Atmanirbhar Bharat, and PM Formalization schemes providing investment incentives(p.107)
- • Growing health consciousness globally driving demand for pickled vegetables with antioxidants and anti-inflammatory properties(p.109)
- • Expand product portfolio into health-conscious segments(p.123)
- • Geographic expansion into new export markets(p.124)
- • Increase manufacturing capacity through new facility(p.124)
- • Expand contract farmer network to secure raw material supply(p.125)
- • Strengthen distribution through retail partnerships in Middle East(p.124)
- • Leverage technology and new preservation techniques(p.123)
- • Data insufficient in this document section
- • Significant concentration of sales in Russia amid ongoing geopolitical tensions(p.33)
- • Foreign exchange volatility and rupee depreciation risks(p.34)
- • Product contamination risks in food processing and export business(p.32)
- • Disruption risks from supply chain, storage and handling of perishable products(p.32)
- • Dependence on limited number of electricity providers with tariff hike risks(p.43)
- • Vulnerability to macroeconomic downturns and global economic uncertainties(p.39)
- • Regulatory compliance risks including food safety and environmental regulations(p.47)
- • Natural calamities and force majeure events affecting production and shipments(p.49)
- • Interest rate fluctuations impacting debt servicing costs(p.50)
- • Changes to Indian tax regime including GST and GAAR implications(p.49)
- • Seasonal dependency of gherkin production with crops available only 7-9 months annually creating supply constraints(p.85)
- • Commodity price volatility and input cost fluctuations impacting raw material costs and production economics(p.80)
- • Competitive pressure from established gherkin exporters with approximately 51 major companies producing and exporting gherkins in India(p.108)
- • Dependence on international customers in developed markets with exposure to currency fluctuation risk and economic downturns in USA, Europe, Russia(p.108)
- • Regulatory and compliance risks including stringent food safety standards (FDA, FSSAI, BRCGS) requiring continuous investments and potential market access disruptions(p.108)
- • Climate and monsoon dependency for agricultural production with variations affecting crop yield and supply(p.86)
- • Trade barriers, tariffs, and geopolitical risks affecting exports to key markets including USA, Europe, and Russia(p.111)
- • Regulatory compliance requirements for new markets(p.124)
- • Dependence on export markets with currency and logistics risks(p.135)
- • High customer concentration risk in export business(p.133)
- • Geographic concentration with Russia as largest market(p.131)
- • Seasonal and climatic variability affecting raw material availability(p.125)
- • Data insufficient in this document section
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Mr. Junaid Ahmed | Promoter | 47.50% | — |
| Mr. Iqbalahmed Khudrathullah Mohammed | Promoter | 34.00% | — |
| Mrs. Asma Syed | Promoter | 1.00% | — |
| Mr. Junaid Ahmed | Promoter | 47.50% | [●] |
| Mr. Iqbalahmed Khudrathullah Mohammed | Promoter | 34.00% | [●] |
| Mrs. Asma Syed | Promoter | 1.00% | [●] |
| Mr. Nimra Fathima | Promoter Group | 1.00% | [●] |
| Mr. Syed Riyaz | Promoter Group | 1.00% | [●] |
| Mrs. Kouser Afshan | Promoter Group | 1.00% | [●] |
| Mrs. Akther Riyaz | Promoter Group | 1.00% | [●] |
| Mr. Junaid Ahmed | Promoter/Chairman and Managing Director | 47.50% | — |
| Mr. Iqbalahmed Khudrathullah Mohammed | Promoter/Whole Time Director | 34.00% | — |
| Ms. Asma Syed | Promoter/Whole Time Director | 1.00% | — |
| Junaid Ahmed Khudrathaullah Iqbal | Promoter/Managing Director | 47.30% | — |
| Iqbal Ahmed Khudrathaullah | Promoter/Whole Time Director | 30.00% | — |
Leadership
Auto-extracted from the company's RHP using AI, with each fact linked to its source passage (hover any row to see the quote & page). Provided for research only, not investment advice — verify against the official RHP before relying on it.