TGIF Agribusiness
Listing performance
Scheduled dates
Tentative timetable — a past date is not confirmation the step completed
Issue details
- IPO date
- 08 May 2024 – 10 May 2024
- Listing date
- 15 May 2024
- Face value
- ₹10 per share
- Issue price
- ₹93 per share
- Lot size
- 1,200 shares
- Issue type
- Fixed Price issue
- Total issue size
- ₹6.39 Cr
- Market cap at offer price
- ₹24.06 Cr
- Promoter holding
- 99.80% → 73.28% pre-issue → post-issue
- ISIN
- INE0SMU01015
- Registrar
- Bigshare Services Pvt.Ltd.
- Lead managers
- Hem Securities Ltd.
- Registered office
- A/52, Fairy Society, 5th Floor, Corporate House, Bodakdev, Gujarat
Reservation and application size
How the issue is split between investor categories, and what each may bid
| Investor category | Shares | % of net | % of total |
|---|---|---|---|
| Market maker | 34,800 | — | — |
Application size
Minimum 1,200 shares per lot, in multiples, at ₹93
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (min) | 1 | 1,200 | ₹1,11,600 |
| S-HNI (min) | 2 | 2,400 | ₹2,23,200 |
| S-HNI (max) | 8 | 9,600 | ₹8,92,800 |
| B-HNI (min) | 9 | 10,800 | ₹10,04,400 |
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.
Valuation and performance
Valuation at offer price
| Metric | Pre-issue | Post-issue |
|---|---|---|
| EPS (₹) | 6.85 | 4.72 |
| P/E (×) | 13.58 | 19.70 |
| Price to book (×) | 9.30 | — |
| Market cap | — | ₹24.06 Cr |
Key performance indicators
- Return on net worth
- 42.85%
- PAT margin
- 47.70%
- NAV per share
- ₹10
- Price to book
- 9.30
Single period as reported. Year-on-year movement is in the financials table below, where every period is published.
About TGIF Agribusiness
TGIF Agribusiness Limited (originally formed as Aarvee Farm Products partnership in 2014, converted to LLP in 2019, and to a public company in December 2023) operates farming of fruits and vegetables over 110 acres of leased farmland in Rajasthan. The company cultivates pomegranate (95%+ of sales), dragon fruit, watermelon, chilly, and sagwan (wood plantation). Farmland is located in three villages—Ajari, Kasindra, and Kojra—in Pindwara tehsil, Sirohi district. The company sells to retailers, wholesalers, mandis, and retail chain stores, primarily in Gujarat and Rajasthan. Revenue grew from ₹178.61 lakhs (FY2021) to ₹229.69 lakhs (FY2023), with profit after tax of ₹130.07 lakhs (FY2023).
Company Analysis
from RHPTGIF Agribusiness Limited is a horticulture company engaged in open farming and cultivation of fruits, vegetables, and wood plantation across the agriculture sector.
TGIF Agribusiness Limited (originally formed as Aarvee Farm Products partnership in 2014, converted to LLP in 2019, and to a public company in December 2023) operates farming of fruits and vegetables over 110 acres of leased farmland in Rajasthan. The company cultivates pomegranate (95%+ of sales), dragon fruit, watermelon, chilly, and sagwan (wood plantation). Farmland is located in three villages—Ajari, Kasindra, and Kojra—in Pindwara tehsil, Sirohi district. The company sells to retailers, wholesalers, mandis, and retail chain stores, primarily in Gujarat and Rajasthan. Revenue grew from ₹178.61 lakhs (FY2021) to ₹229.69 lakhs (FY2023), with profit after tax of ₹130.07 lakhs (FY2023).
Objects of the Issue
- Purchase of agricultural equipments and irrigation system ₹205.97 Lakhs p.22
- To meet Working Capital requirements ₹227.05 Lakhs p.22
- General Corporate Purpose ₹153.76 Lakhs p.22
- Purchase of agricultural equipments & irrigation system ₹205.97 lakhs p.61
- To meet Working Capital requirements ₹227.05 lakhs p.61
- General Corporate Purpose ₹153.76 lakhs p.61
- General corporate purposes
Issue Structure
- Total Issue
- ₹639.47 Lakhs
- Fresh Issue
- Upto 6,87,600 Equity Shares aggregating ₹639.47 Lakhs
- Offer for Sale
- Nil
- Price Band
- ₹93 per Equity Share (Fixed Price)
- Lot Size
- 1200 Equity Shares and in multiples of 1200 Equity Shares thereafter
- Face Value
- ₹10 per Equity Share
Business Model
The company earns revenue from cultivation and sale of horticultural produce—primarily pomegranate—to wholesalers, retailers, mandis (agricultural markets), and retail chain stores. It operates on leased farmland, employs casual and permanent labour, and maintains storage and cold storage facilities for perishable produce.
Business Segments
SWOT Analysis
- • Established horticulture operation with significant land holdings(p.21)
- • Strong revenue growth trajectory(p.33)
- • Profitable operations with positive cash flow(p.22)
- • Quality control mechanisms from plantation to packaging(p.87)
- • Drip irrigation system for efficient farm management(p.84)
- • Experienced management with 26 years in business and 25 years in operations(p.87)
- • Diversified product range across fruits and timber(p.88)
- • Experienced promoter with 26 years in business development and finance; Managing Director with 25 years in operations management(p.153)
- • Combined 9 years of farming and agricultural industry experience by promoter and managing director(p.153)
- • High profitability with PAT margins of 47-57% across recent fiscal years(p.154)
- • Strong return on net worth ranging from 14.80% to 252.02%(p.154)
- • Positive net worth and strong liquid investments; significant mutual fund holdings(p.136)
- • Established farming operations across 110+ acres with modern irrigation systems(p.153)
- • Excessive dependence on single product(p.26)
- • Limited operating history as a limited company(p.25)
- • High concentration among few customers(p.28)
- • Unregistered lease agreements for farm land(p.26)
- • Unsecured borrowings subject to recall(p.33)
- • Group company with negative net-worth(p.33)
- • Unregistered trademarks(p.30)
- • Extreme revenue concentration in single customer(p.85)
- • High concentration in top 5 customers(p.85)
- • Small employee base of only 8 people(p.91)
- • All farm lands held on lease basis, not owned(p.84)
- • High concentration of revenue in single or few customers (56-87% from single customer across periods)(p.154)
- • Unsecured short-term borrowings of Rs. 67.30 lakhs from promoters and related parties without formal repayment terms(p.152)
- • Very recent conversion from LLP to limited company (December 2023); nascent corporate governance structure(p.153)
- • Multiple pending income tax and wealth-tax proceedings involving company and directors; Rs. 334.63 lakhs in tax demands(p.163)
- • Pending litigation involving Independent Director Jani Hursh Pareshkumar before Gujarat High Court (SCA/10919/2019)(p.163)
- • India's strong position in global agriculture sector(p.21)
- • Expansion into new geographies(p.27)
- • Growing organic farming demand(p.26)
- • Capital investment in agricultural equipment and irrigation(p.21)
- • Expand domestic presence through aggressive market penetration(p.88)
- • Grow B2C business model through direct-to-consumer platform(p.88)
- • Invest in infrastructure for long-term production capacity(p.88)
- • India's horticulture production exceeds foodgrain production with growth trajectory(p.77)
- • Increasing domestic consumption from rising incomes and demand(p.84)
- • Expansion of B2C model through Direct2home service for direct-to-customer sales(p.153)
- • Growing consumer demand for fruits driven by increasing knowledge, interest, and purchasing power(p.153)
- • Diversification into dragon fruit cultivation; currently 2.23 lakhs revenue in period Nov-23(p.154)
- • Access to capital markets through SME IPO listing on BSE SME platform for business expansion(p.170)
- • Potential to scale operations and increase market penetration in Gujarat and Rajasthan states(p.154)
- • Dependence on weather and monsoon patterns(p.26)
- • Seasonal business variations(p.27)
- • Product spoilage and perishability(p.29)
- • Intense competition in agricultural sector(p.30)
- • Volatility in commodity prices(p.29)
- • Risk of plant and crop diseases(p.29)
- • Water supply constraints(p.30)
- • Regulatory changes in tax and agricultural policy(p.32)
- • Farm productivity depends on uncontrollable soil and climate factors(p.89)
- • Heavy dependence on monsoon rains for water supply(p.90)
- • Risk of equipment failure, natural calamities and crop diseases(p.91)
- • Fragmented agricultural market with intense local competition(p.90)
- • Insurance coverage may not adequately protect against all material hazards(p.91)
- • High susceptibility to seasonal fluctuations and weather-dependent crop yields(p.159)
- • Dependence on farmland leases from promoters with 5-year tenure; risk of non-renewal or lease termination(p.153)
- • Vulnerability to agricultural input price volatility, monsoon patterns, and external economic factors(p.154)
- • Competitive pressure from other agricultural and horticulture producers in the region(p.159)
- • Regulatory risks including food safety compliance and agricultural regulations; FSSAI registration pending as of April 2024(p.167)
Promoters
| Name | Role | Pre-Issue | Post-Issue |
|---|---|---|---|
| Niraj Chhaganraj Gemawat | Promoter | 74.50% | 54.70% |
| Rachana Niraj Gemawat | Promoter | 23.20% | 17.04% |
| Niraj Chhaganraj Gemawat | Promoter | 74.50% | 54.70% |
| Rachana Niraj Gemawat | Promoter | 23.20% | 17.04% |
| Chhaganraj Gemawat | Promoter Group | 1.00% | 0.73% |
| Sumanlata Gemawat | Promoter Group | 1.00% | 0.73% |
| VIN IT Solutions LLP | Promoter Group | 0.10% | 0.07% |
| Niraj Chhaganraj Gemawat | Promoter | 74.50% | — |
| Rachana Niraj Gemawat | Promoter | 23.20% | — |
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.