Freshara Agro Exports IPO Oct 17 to Oct 21: Key Insights, Subscription Dates, and Investment Information

Freshara Agro Exports IPO Oct 17 to Oct 21: Key Insights, Subscription Dates, and Investment Information

Freshara Agro Exports is an Indian export-oriented agri-produce firm. The firm will come out with its Initial Public Offering in mid-October 2024. The firm raises Rs 75.39 crores through the book-built Initial Public Offering, as the whole issue size is a fresh issue. Freshara Agro Exports shall be using the entire amount raised from the IPO towards its corporate purposes.

The issue IPO would open for subscription from October 17, 2024 to October 21, 2024. The allotment for the issue would be finalized by October 22, 2024 and the shares would be listed at the SME platform of NSE from October 24, 2024.

Important Points:

  • IPO Size and Fresh Issue: Freshara Agro Exports IPO is a book-built issue of Rs 75.39 crores, consisting entirely of a fresh issue of 64.99 lakh shares.
  • Subscription Dates: The IPO opens for subscription on October 17, 2024, and closes on October 21, 2024.
  • Price Band: The price band for the IPO is set at ₹110 to ₹116 per share.
  • Minimum Investment: Retail investors need a minimum investment of ₹139,200 for 1,200 shares. High Net Worth Individuals (HNIs) must invest in 2 lots (2,400 shares), amounting to ₹278,400.
  • Allotment and Listing: The allotment for the IPO is expected to be finalized on October 22, 2024, and the shares are tentatively set to list on NSE SME on October 24, 2024.
IPO Schedule
Event Date
IPO Open Date Thursday, October 17, 2024
IPO Close Date Monday, October 21, 2024
Basis of Allotment Tuesday, October 22, 2024
Initiation of Refunds Wednesday, October 23, 2024
Credit of Shares to Demat Wednesday, October 23, 2024
Listing Date Thursday, October 24, 2024
Cut-off time for UPI mandate confirmation 5 PM on October 21, 2024

About Company: Freshara Agro Exports

Freshara Agro Exports is an agricultural exports firm that specializes in sourcing, packaging, and distributing different products from farms. The company operates in a business sector that is strongly featured in India’s economy-agriculture-and has been gradually on the rise because of more demand for fresh produce in the global markets. By giving high-quality farm produce to export, Freshara Agro Exports provides the link between Indian farmers and overseas buyers, the connection for India to grow as an exporting nation.

All in all, the surge in demand for organic and sustainable food products will be positive for the company’s high-profile products as more retail and institutional investors start to focus attention to the offerings.

IPO Details: Freshara Agro Exports

Fresh issue of 64.99 lakhs equity shares Freshara Agro Exports intends to raise fresh funds of Rs 75.39 crores with no offer for sale, in other words, no selling shareholder looking to off-load his stakes in the process. Instead, the fresh issue would offer fresh fund-raising in the hands of the company that could be used for growth and expansion purposes.

Issue Size: Rs 75.39 cr
Fresh Issue: 64.99 lakh shares
Offer Type: The whole edition is a fresh issue, that is, all the shares are newly issued by the Company. The company issues no existing shares sold-off by the promoters/promoter group or venture capitalists.
IPO Price Band and Investment Details
The price band for the Freshara Agro Exports IPO is set between ₹110 to ₹116 per share, and it will be open to investor discretion on price selection. Since it is a book-built issue, the final pricing will also be subject to investor demand.

Price Band: ₹ 110 to ₹ 116 per share
Minimum Lot Size for Retail Investors: 1,200 shares
Minimum Investment for Retail Investors: ₹ 139,200
Minimum Lot Size for HNI Investors: 2 lots (2,400 shares)
Minimum Investment for HNI Investors: ₹278,400
This corporate structure has been able to let the small investors and the HNI investors, based on their financial ability and still get on board the opportunity through the IPO, enable easy take-up.

Subscription Dates and Allotment

The date for the opening and closing of the subscription period of Freshara Agro Exports IPO ranges between October 17, 2024, and October 21, 2024. These five days allow interested investors to submit their bids during the said period at the price desired within the price band.

Opening Date: October 17, 2024 
Closing Date: October 21, 2024
Date of allotment: October 22, 2024
Once the IPO subscription period closes, allotment will be finalized on October 22, 2024; it would only then be known to the investors whether their bids have been successfully allocated or not. Refunds for unsuccessful bids shall be processed short there after
Listing on NSE SME

The Freshara Agro Exports IPO will be listed on the NSE SME exchange after the allotment will end on 24th October, 2024. This platform to list the share stocks for small and medium enterprise companies is the same as listing the bigger firm company counterparts in their main stock exchanges but adds capital.

Objectives of Freshara Agro Exports IPO

The income derived from this IPO will be used towards a number of key objectives of Freshara Agro Exports to help the firm grow and to re-inforce its financials. The key aims of the IPO are as follows:

Meeting Working Capital Requirements : Funds would also be used to meet the working capital requirements of the business so that day-to-day operations are effective and smooth.

Expansion of the Distribution Network: Freshara Agro Exports would try to expand its distribution network. This would provide fresh access to newer international markets and expand the global reach of the company.

General Corporate Purposes: A percentage of the amount would be put generally to corporate purposes. These purposes can include an upgrade to infrastructure, new recruitment, marketing and promotional activities, among others.

Industry Overview: Agricultural Exports in India

Agricultural exports act as the backbone of the Indian economy by exhibiting enormous contributions to the balance of trade in India. India is the world’s largest exporter of agricultural products, which include fruits, vegetables, cereals, and spices. Export promotion policies have been in place to back the agriculture sector, such as the Agriculture Export Policy launched in 2018 with an aim to increase India’s agricultural exports to $60 billion by 2022.

Such is the case with the company, since it operates in a fast growing sector due to an increased demand for quality, organic, and sustainable agricultural produce globally. Its IPO is arriving at the right time when international supply chains are trying to get out of the shock caused by the pandemic, and a growing demand for fresh produce.

Risks and Considerations

The Freshara Agro Exports IPO poses risks and considerations that make an opportunity for investors:

Market Volatility: Periodic fluctuation in the stock market may cause impact to the listing of the initial public offering. The future of the company is affected by this.
Global Trade Risks: As Freshara Agro Exports is more vulnerable to the exporter, there are risks in global trade policies, tariffs, and regulations.
Operational Risks: Poor harvests, commodity price fluctuations, and supply chain obstacles are the most common risk factors related to the agricultural sector.

Any investor who wishes to invest in the IPO has to weigh those risks based on his/her risk appetite and the objectives of the investment before making any investment decision .

How to Apply Freshara Agro Exports IPO

Applications for Freshara Agro Exports IPO can be submitted under ASBA. This is available in most of the banks and on other brokerage platforms; it is relatively easy to do the same through the UPI platform.
Apply Via Steps
Login to your bank or to your brokerage site.
You need to select from the list of open IPOs, the Freshara Agro Exports IPO.
You would be required to input the number of shares you want to bid for along with the price at which you wish to bid, that is between ₹ 110 to ₹ 116.
Click and confirm your application
Apply in the subscription dates; that is, during October 17 – 21, 2024, to have a shot at IPO allotment

Conclusion:

A source of investment in the fast-growing agricultural export sector has opened with the Freshara Agro Exports IPO, which opens tomorrow. Rs 75.39 crores will be raised through this issue, involving a fresh issue of 64.99 lakh shares to be sold at ₹110 to ₹116 per share. It would probably attract good interest from both retail and institutional investors.
The sector has a lot of promise, but still, most attention needs to be paid towards risk factors involved. As always, proper investigation with financial experts can guide the investor in making a decision. The IPO listed on 24th October 2024 shall give better knowledge regarding the market performance of the company and its future growth prospects.
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Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.

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