About the Company:
TGIF AgriBusiness Ltd is primarily a horticulture company engaged in open farming of certain fruits and vegetables.
Company’s farm land is spread over an area of over 110 acres and is situated in the vicinity of three villages i.e. Ajari, Kasindra and Kojra, all of which are located in the tehsil of Pindwara, district Sirohi, Rajasthan.
Company has obtained all farm lands on lease basis from Niraj Chhaganraj Gemawat (Promoter), Rachna Gemawat (Promoter), Niraj Chhaganraj Gemawat HUF and Vipin Moharir.
Company is mainly engaged in the farming of pomegranate which contribute to more than 95% of our revenue from operations.
Apart from the farming of pomegranate company is also engaged in the farming and cultivation of dragon fruits and Sagwan trees.
In the last three financial years, i.e. F.Y. 2020-21, 2021-22 and 2022-23, apart from pomegranate, which has remained our main crop, company has also grown and harvested lemon, water melon and chilly.
Company’s Products:
- Pomegranate
- Dragon fruit
- Other seasonal vegetables & fruits like water melon, lemon & chilly
- Sagwan – Sagwan are timber product, which take a long period of time to grow and become ready for sale and marketability.
Company’s Farms:
Company operates from our 110 acres of farm situated in the vicinity of three villages i.e. Ajari, Kasindra and Kojra, all of which are located in the tehsil of Pindwara, district Sirohi, Rajasthan.
Company grows fruits which includes pomegranate, dragon fruit, lemon, water melon and chilly apart from this we are also engaged in wood plantation viz. sagwan trees.
Where does the Company sells its Produce?
Company currently sells majority of the products to retailers, wholesalers, retail chain stores, hypermarkets and mandis.
Under the B2B model all these customers visit the farms for evaluating the farm and the produce and based on price negotiations prices are finalized with the customers.
Company also has plans to sell produce through our B2C model under the name of Direct2home service, where the local customers can place the order and the products will be picked, packed from the farm and delivered to the customer home directly.
Majority of the farm produce are sold in the state of Gujarat and Rajasthan.
Company direct2home platform.
Under the B2C model, Compay has used direct2home platform, where the farm produce were directly sold from our farm to consumer in Ahmedabad market.
Company intends to sell our farm produce and expand the reach of direct2home service to other parts of the state and increase our revenue from operations.
Company’s Product wise Revenue Breakup: (in Lakhs)
Management Team:
- Mr. Bharat Bhupendrakumar Thaker (Designation: Managing Director)
- Mr. Niraj Chhaganraj Gemawat (Designation: Chairman & Non- Executive Director)
Objectives of the Issue:
Fresh Issue: (Rs. 6.39 cr)
Purchase of agricultural equipments & irrigation system;
To meet Working Capital requirements
General Corporate Purpose.
Fund Utilization:
| Particulars | Amount (Rs. in Crores) |
|---|---|
| Purchase of agricultural equipments & irrigation system | 2.05 cr |
| To meet Working Capital requirements | 2.27 cr |
| General Corporate Purpose | 1.53 cr |
| Net Proceeds | 5.86 cr |
Company is currently expanding our agricultural and irrigation facilities at our existing farms located in Rajasthan. The proposed purchase of equipments & irrigation facility will enhance the production of the company. The expansion activities are proposed to be commissioned during the year 2024-25.
Positives for the Company:
Growing Demand for Premium fruits.
- With the growing consumer knowledge, interest, and purchasing power the demand for the fruits have also increased. This, in turn, played an important role in increasing our product demand in the market.
- Company maintains adherence to quality and safety standards including plant quality, product quality, use of plant nutrients, fertilizers, pesticides to safeguard the plants and produce etc.
Dragon Fruits Cultivation will be a game changer for the Company’s future.
- Company will be entering Dragon Fruit cultivation which fetches higher price in the market and also has great demand for the product.
Financials of the Company:
| (in Crores) | FY 21 | FY 22 | FY 23 | Upto 30th Nov 23 |
|---|---|---|---|---|
| Revenue | 1.81 | 2.07 | 2.32 | 1.71 |
| Net Profit | 0.38 | 1.16 | 1.30 | 0.81 |
Valuation of Peer Group Companies:
| Company Name | Face Value | EPS | PE Ratio | RoNW | NAV |
|---|---|---|---|---|---|
| TGIF Agribusiness Ltd | 10 | 6.85 | 13.57 | 73.95% | 9.26 |
| Raghuvansh Agrofarms Ltd | 10 | 4.07 | 110.74 | 9.19% | 44.30 |
| Bangalore Fort Farms Ltd | 10 | 0.36 | 59.92 | 0.10 | 36.90 |
IPO Details:
| Details | Info |
|---|---|
| Issue Opens on | 8th May 2024 |
| Issue Closes on | 10th May 2024 |
| Issue Price | Rs.93 |
| Face Value | Rs.10 |
| Minimum Lot | 1200 Shares |
| Minimum Investment | Rs.1,11,600 |
| Issue Constitutes | 26.57 % |
| Issue Size | Rs.6.39 cr |
| Market Cap | Rs.24.06 cr |
| Listing at | BSE SME |
| Equity Shares Offered (Fresh) | 6,87,600 (Rs.6.39 cr) |
| Equity Shares Prior to the Issue | 19,00,000 |
| Equity Shares after the Issue | 25,87,600 |
Important Dates:
| Finalization of Basis of Allotment | on or Before 13th May 2024 |
| Initiation of Refunds | on or Before 14th May 2024 |
| Credit of Equity Shares: | on or Before 14th May 2024 |
| Listing Date: | on or Before 15th May 2024 |
IPO Valuation Parameters:
| Earnings Per Share (EPS) | Price To Earnings ratio (PE) | Return on Net Worth (RoNW) | Net Asset Value (NAV) |
|---|---|---|---|
| 6.85 | 13.57 | 73.95% | 9.26 |
Also Read: Complete List of NSE/BSE Holidays List>>
| Should You Subscribe or Not ? (Markets Guruji’s View) |
|---|
| TGIF AgriBusiness Ltd is a thriving horticulture company, specializing in the open farming of select fruits and vegetables. Their innovative approach extends to their B2C model, Direct2home service, offering local customers the convenience of farm-fresh produce delivered straight to their doorsteps. Operating primarily in Gujarat and Rajasthan, the company has established a strong foothold in these markets.
With an eye on expansion, TGIF AgriBusiness Ltd is set to embark on a transformative journey with the introduction of dragon fruit cultivation. The IPO proceeds will facilitate this strategic move, with plans to procure 7700 RCC poles to start the Dragon fruit Cultivation. This bold step is poised to revolutionize the company’s future prospects, capitalizing on the high demand and premium pricing of dragon fruit in the market. While currently attracting risk-taking investors, the company’s financial performance post-dragon fruit production will be closely monitored. The anticipated success in this venture promises significant growth opportunities, making TGIF AgriBusiness Ltd an exciting prospect for investors seeking high potential ventures in the agricultural sector. |
| Company Contact Info: |
|---|
| TGIF AgriBusiness Ltd A/52, Fairy Society, 5th Floor, Corporate House, Bodakdev, Ahmedabad- 380054, Gujarat, India. Tel No: +079 49887770 E-mail: cs@tgifagribusiness.com Website: www.tgifagri.com |
| Registrar to the Issue: |
|---|
| Bigshare Services Private Limited S6-2, 6th Floor, Pinnacle Business Park, Next to Ahura Centre, Mahakali Caves Road, Andheri (East) Mumbai – 400093, Maharashtra, India. Telephone: +91 22 6263 8200 Email: ipo@bigshareonline.com Website: www.bigshareonline.com |
| Lead Manager to the Issue: |
|---|
| HEM SECURITIES LIMITED 904,A Wing, Naman Midtown, Senapati Bapat Marg, Elphinstone Road, Lower Parel, Mumbai-400013, Maharashtra, India Tel. No.: +91- 022- 49060000 Email: ib@hemsecurities.com Website: www.hemsecurities.com |
| Check IPO Allotment Status: |
|---|
Bigshare: http://www.bigshareonline.com/IPO/Allotment |
| Find the List of Upcoming IPOs in India: |
|---|
Upcoming IPOs in India (Click on the below Link)https://www.marketsguruji.com/upcoming-ipos-in-india/ |
