Freshara Agro Exports Sees Strong Demand on IPO Day 1

The initial public offering (IPO) of Freshara Agro Exports has made a robust start, opening for subscription on Thursday, October 17, 2024. The company specializes in the export of processed gherkins and pickled vegetables, and it aims to raise ₹75.39 crore through the IPO. As of 2:30 p.m., the offer was oversubscribed 7.24 times, according to exchange data.

Retail investors showed considerable interest, with their allotted portion subscribed 10.26 times, while the non-institutional investors’ (NII) segment was filled 5.18 times. Meanwhile, the qualified institutional buyer (QIB) portion was subscribed 3.51 times. The IPO’s popularity is evident from its 12.67 times overall subscription on its opening day.

The IPO, open from October 17 to October 21, has a price band set between ₹110 and ₹116 per share. The company plans to use the proceeds for capital expenditures, working capital requirements, general corporate purposes, and covering issue expenses. The SME IPO consists entirely of a fresh issue amounting to 64.99 lakh shares.

According to market sources, the grey market premium (GMP) suggests that Freshara Agro Exports shares might list at a 64.65% premium, indicating a strong debut on the NSE SME Emerge platform. The shares are expected to trade at around ₹191 each.

Freshara Agro Exports is headquartered in Tirupattur, Tamil Nadu, operating a state-of-the-art facility for its agricultural produce, which it exports to over 40 countries, including major markets in Europe, the USA, and Australia. The company supports more than 4,000 farmers, encouraging sustainable practices and ensuring fair trade practices.

The lead manager for the issue is GYR Capital Advisors Private Limited, with Purva Sharegistry India Pvt Ltd acting as the registrar. Giriraj Stock Broking has been appointed as the market maker. The allotment of shares is expected to be finalized on October 22, 2024, with successful bidders receiving their shares in demat accounts by the following day.

Freshara Agro Exports has reported significant financial growth in recent years. In FY24, the company recorded a revenue of ₹198.01 crore, marking a 55% increase over the previous year. Its profit-after-tax surged over 140%, reaching ₹21.82 crore. The company’s net worth also saw considerable growth, increasing by over 221% to ₹59.58 crore in FY24.