Freshara Agro Exports IPO: Day 1 Sees Explosive Demand – Subscription Soars, GMP Hints at 65% Premium Listing!

Freshara Agro Exports, a company that exports processed gherkins and pickled vegetables, launched its initial public offering (IPO) on Thursday, October 17. The IPO has already attracted a lot of interest from investors.

By 2:30 p.m. on the first day of bidding, the IPO had been subscribed 7.24 times. The retail portion was subscribed 10.26 times, non-institutional investors (NIIs) subscribed 5.18 times, and the portion for qualified institutional buyers (QIBs) was subscribed 3.51 times, according to data from the stock exchange.

IPO Purpose and Grey Market Premium

The funds raised from this IPO will be used for working capital, capital expenditure, general corporate needs, and to cover the costs of the IPO. The current grey market premium (GMP) suggests that the company’s shares could list at a 64.65% premium.

Freshara Agro Exports IPO Details

1. Subscription Dates: The IPO opened on Thursday, October 17, and will close on Monday, October 21.
2. Price Range: The price band for the IPO is set at ₹110 to ₹116 per share.
3. IPO Size: Freshara Agro Exports aims to raise ₹75.39 crore by offering 64.99 lakh shares.
4. Lot Size: Investors can buy a minimum of 1200 shares per lot, requiring a minimum investment of ₹1,39,200.
5. Reservation: 11.76 lakh shares are reserved for QIBs, 8.83 lakh shares for NIIs, and 20.59 lakh shares for retail investors.
6. Allotment Date: The allotment of shares will take place on Tuesday, October 22. Shares will be credited to successful applicants’ demat accounts by Wednesday, October 23, and refunds will be processed the same day for those who did not receive shares.
7. Listing Date: The company’s shares are expected to list on the NSE SME platform on Thursday, October 24.
8. Grey Market Premium (GMP): As of 2:30 p.m. on Thursday, the GMP was ₹75. Based on the upper price band of ₹116, the shares are expected to list at ₹191, reflecting a 64.65% premium.
9. IPO Managers: The lead manager for the IPO is GYR Capital Advisors Private Limited, and the registrar is Purva Sharegistry India Pvt Ltd. Giriraj Stock Broking is the market maker.
10. Business Overview: Freshara Agro Exports specialises in processing and exporting gherkins and pickled vegetables. The company operates a modern facility in Tirupattur, Tamil Nadu, and supplies to over 40 countries, including Europe, the USA, and Australia. Freshara works with over 4,000 farmers, promoting sustainable farming and fair compensation.

For the first half of FY25, Freshara Agro Exports reported revenue of ₹10,365.55 lakhs, EBITDA of ₹1,866.09 lakhs, and a net profit of ₹1,137.81 lakhs.