About the Company:
Freshara Agro Exports Ltd is engaged in the procurement, processing and exporting of preserved Gherkins and other pickled commodities from India to different countries of the world.
Company’s procurement process involves direct sourcing from accredited farms and farmers dedicated to sustainable agricultural methodologies.
Company meticulously process the procured Gherkins and other pickled vegetables within our processing facility, adhering to stringent quality and preservation protocols prior to exportation.
Gherkins are savored pickle vegetable relished globally & consumed in the markets of Europe, USA, Australia, Russia, etc. as a delicacy with other food items.
Company has all the food safety certifications which ensures that all of our products meet or exceed industry standards and helps in exporting to countries like Russia, United States, United Kingdom, various countries in Europe, Middle-East, North America and South America, etc.
Company has been recognized as a 100% Export House by Ministry of Commerce & Industry, Government of India.
About the Promoters:
Company was founded and promoted by Mr. Junaid Ahmed in 2015. He is also the Managing Director of our Company and in addition to his overall supervision of our business operations, he also heads our business developments and manages relationships with our key institutional customers, distributors and suppliers.
Company believes that the experience of our founder and senior management team has significantly contributed to our success and growth. Under his leadership and guidance and our management’s execution capabilities we were able to capture 10% market share in the Indian Gherkins export market.
Company’s Exports Business:
Freshara Agro Exports Limited has been at the forefront of the processing and export industry for the past nine years, specializing in the production of high-quality gherkins, cucumbers and pickled vegetables.
Over the years, company has continually strived for innovation and diversity in our product offerings. While staying true to traditional pickling techniques, company has also embraced modern methods to expand our range of products and cater to evolving consumer preferences. From classic favourites like pickled cucumbers and carrots to unique blends featuring exotic vegetables.
In Export market, company is not dependent on distributors and retailers. 70% of our products are “not ready to eat” and are supplied directly to factories who re-process the products and convert them to finished goods. Remaining 30% of our products are supplied to Food Brokers and Traders in the international market.
Company’s Product Wise Revenue:
Company’s Top 10 Customers:
Peer Group Comparison:
- We believe that there is no listed company which is specifically comparable to us w.r.t. to our business model,size and financials.
Management Team:
- Mr. Junaid Ahmed (Designation: Chairman and Managing Director)
- Mr. Iqbalahmed Khudrathullah Mohammed (Designation: Whole Time Director)
Objectives of the Issue:
Fresh issue: (Rs.75.39 cr)
- To meet out the Capital Expenditure;
- Funding the working capital requirements of the company;
- To meet out the General Corporate Purposes; and
- To meet out the Issue Expenses.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Capital Expenditure | 8.79 cr |
| Working Capital | 56 cr |
Benefits arising from the proposed capital expenditure:
The proposed capital expenditure is purchase new machinery lines related to production of Gherkins and other vegetables. The proposal is to purchase new machinery which will comprise of a semi-automated production and processing line which can produce up to 6000 jars per hour of production.
The production line will include a Jar Filling Machine, Labelling Machine, Tamping Machine, Pasteurizer, Drier, and other ancillary machines which can help produce higher quantities of Gherkins and other vegetables in Jars and Cans.
This will help the company produce more quantities of Retail Packaged products in Jars and Cans which will in turn help the company attract bigger retail chains and distributors in the food market. It will also help in production of various other products which the company wants to grow and produce like Babycorn, Jalapenos, Bell Peppers, Onions and Olives.
The production of the orders will be faster and the sales revenues will increase accordingly.
Expected Revenue resulting from the expansion and increased demand for the product :
Company’s current unit is insufficient to meet the growing needs for packing, storage, and export of finished goods. It primarily focuses on industrial packaging and lacks capacity for retail packaging, making it challenging to manage large volumes. Therefore, we developed the plan for a new, larger unit. This new facility is twice the size of the existing one, offering expanded storage and processing capabilities.
Customer demand for an expanded facility has been substantial, but due to limited space on our current site, we have been unable to grow. The new unit features 100,000 square feet of covered space, specifically designed for the production and storage of finished goods, with additional capacity for future expansion.
With the capital expenditure secured through the IPO, we plan to implement a semi-automated production line for gherkins and other vegetables, capable of producing up to 6,000 jars or cans per hour. This expansion is anticipated to double our sales turnover. The additional working capital will enable us to increase production significantly.
Currently, our retail revenue is only about 10% of the market, which is valued at approximately 1,000 crores annually. The lack of production space in our existing facility has hindered our ability to fulfill existing orders and capture new opportunities in the retail sector.
Major American and European clients, including retail chains such as Walmart, Tesco, and Lidl, seek exclusive and sophisticated production capabilities. Our new unit will meet these demands and enable us to supply these high-grade customers. The infrastructure required for the finished product category is more advanced than for industrial packaging, justifying the need for this capital expenditure.
Financials of the Company:
| (in Crores) | FY 22 | FY 23 | FY 24 | Upto 30th Sept 24 |
|---|---|---|---|---|
| Revenue | 118.40 | 127.0 | 198.01 | 107.46 |
| Net Profit | 0.97 | 9.08 | 21.82 | 11.37 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 17th October 2024 |
| Issue Closes on | 21st October 2024 |
| Issue Price | Rs.110-116 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,39,200 |
| Issue Constitutes | 27.65 % |
| Issue Size | Rs.75.39 cr |
| Market Cap | Rs.272 cr |
| Listing at | NSE SME |
| Equity Shares Offered (Fresh) | 64,99,200 (Rs.75.39 cr) |
| Equity Shares Prior to the Issue | 1,70,00,000 |
| Equity Shares after the Issue | 2,34,99,200 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 3.75 | 30 | 29.70% | 15.70% |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| Freshara Agro Exports Ltd is a prominent Indian company engaged in the procurement, processing, and export of preserved gherkins and other pickled commodities to global markets. The company directly sources its produce from accredited farms and farmers who adhere to sustainable agricultural practices. This commitment ensures the highest quality of raw materials while supporting environmentally conscious farming methods.
Freshara meticulously processes gherkins and other vegetables at its state-of-the-art facility, following stringent quality and preservation standards. These preserved vegetables are relished worldwide, particularly in Europe, the USA, Australia, and Russia, where they are enjoyed as a savory accompaniment to a variety of foods. The company holds all essential food safety certifications, ensuring that its products meet international standards. This allows Freshara to export its products to numerous countries, including Russia, the United States, the UK, various European nations, the Middle East, and both North and South America. Recognized by the Ministry of Commerce & Industry, Government of India, as a 100% Export House, Freshara has been a leader in the sector for the past nine years. With capital secured through an IPO, the company plans to install a semi-automated production line, capable of producing 6,000 jars or cans per hour, significantly increasing production and doubling sales turnover. |
Important Dates:
| Finalization of Basis of Allotment | on or Before 22nd October 2024 |
| Initiation of Refunds | on or Before 23rd October 2024 |
| Credit of Equity Shares: | on or Before 23rd October 2024 |
| Listing Date: | on or Before 24th October 2024 |
| Company Contact Info: |
|---|
| Freshara Agro Exports Ltd Old No.3, New No.9, Puram Prakasam Road, Balaji Nagar, Royapettah, Chennai, Tamil Nadu – 600014, India. Telephone: +91 44 4357 0138 E-mail: cs@fresharaagroexports.com Website: https://fresharaagroexports.com/ |
| Registrar to the Issue: |
|---|
| Purva Sharegistry (India) Private Limited 9 Shiv Shakti Industrial Estate, J.R Boricha Marg, Lower Parel (East), Mumbai- 400011, Maharashtra Telephone: +91-022-4961-4132, 022-3199-8810 Email: newissue@purvashare.com Website: https://www.purvashare.com/ |
| Check IPO Allotment Status: |
|---|
IPO Allottment Check:http://Purva SharServices/IPO/Allotment_Status |
