Abram Foods Limited opens its IPO for subscription on June 24th 2025 and ends on June 26th 2025. It is a fixed-price issue offering an issue size of 14,28,000 equity shares totalling up to Rs.1,399.24 lakhs with a face value of Rs.10. The price band is set at Rs.98 for a lot size of 1200 and is set to go public on July 1st 2025 on the Emerge platform of the Bombay Stock Exchange.
The company is a Rajasthan-based company, engaged in the business of manufacturing, trading, and selling food products like Chana, Chana Dal, Besan, Edible Oil, Spices, and flour (Atta) under its brands “KHERLIWALA”.
It has traditional processing techniques and in-house manufacturing practices to ensure the authentic ‘Taste of Rajasthan’ delight. It has a well-equipped manufacturing unit in Alwar, Rajasthan, and has established a strong customer base in Rajasthan, Delhi-NCR.
The company is committed to driving growth and transformation in this sector and further enhancing its marketing capabilities.
Details Of Abram Foods Limited IPO
Objectives of Abram Foods Limited IPO
With the help of this IPO, the company proposes to use the net proceeds to purchase machinery, meet working capital and expense-related issues, and for general corporate purposes.
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Financial Performance of Abram Foods Limited
The table below (in lakhs) shows the restated Financial Information of the company over the last 3 fiscal years.
Particulars | 31.03.2025 | 31.03.2024 | 31.03.2023 |
Share Capital | 372.60 | 289.20 | 24.10 |
Total Net Worth | 842.95 | 415.16 | 313.27 |
Revenue from operations | 6,404.49 | 3,600.87 | 3,316.42 |
Profit After Tax | 325.55 | 101.89 | 48.28 |
Industry Outlook
The fast-moving consumer goods (FMCG) sector is the fourth largest sector in India and has been growing exponentially over the years. With the rising population and the middle-class constantly moving up the economic ladder due to its rising ambitions, consumer demand is subsequently increasing.
India is a domestic-driven economy and in the last few years, this sector has grown at a faster pace in the rural areas as compared to the urban areas. The agriculture sector contributes a substantial portion towards the Indian economy and the Indian food and agriculture market is the sixth largest in the world and is predicted to reach USD 24 billion by 2025.
In terms of exports, agriculture and food products stood at USD 4.34 billion in 2024-25(April-May). The government is constantly improving this sector with strategic initiatives and structured investments to diversify India's agricultural production and exports.
The nation’s processed food industry is expected to grow to US$ 958 billion by 2025 with enabled technical solutions, and efficient supply chains to keep this sector thriving in the long run.
Strengths and Risks of Abram Foods Limited
Strength:
Weakness;
- The company’s directors and promoters are facing certain outstanding litigation, any adverse outcome may affect the company's operations and financial conditions.
- Any changes in the regulation in the FMCG or the manufacturing sector by the Government may adversely affect the company's operations and financial conditions.
- The company has experienced negative cash flow in the past and may experience the same in the future.
- The company derives significant revenue from the sale of Chana and Chana dal, any decline in the sale of these products may adversely affect the company's operations and financial conditions.
- The company majorly operates in Rajasthan and Delhi-NCR, any political or geographical disruption may adversely affect the company operations and financial conditions.
IPO Subscription Details
The IPO offers a fresh issue size of 14,28,000 equity shares totaling up to Rs.1, 399.44 lakhs with a face value of Rs.10. The bid price is set at Rs.98 per share for a lot size is 1200. The issue period begins from June 24th 2025 and ends on June 26th 2025 and is scheduled to go public on July 1st 2025 on the SME platform of BSE.
Expert Recommendations
The FMCG sector is one the most prominent sectors of the Indian economy driven by constant demand and surplus production with many government initiatives and schemes. The company has a diverse product portfolio and healthy financials, in the last three fiscal years, it has increased its profit after tax from Rs. 48.28 lakh in 2023 to Rs. 325.55 lakhs in 2025. However, the company is also subject to many risks as outlined in the RHP draft and investors should carefully outline the risks given in the document before investing.
Key Takeaways
The company with the help of this Initial Public Offering (IPO) aims to purchase machinery, meet working capital, and for general corporate purposes. It has shown healthy profits over the years but is also subject to many risks, which the investor should outline before investing.
Frequently Asked Questions: Abram Foods Limited IPO
1. When is the Abram Foods Limited IPO being listed?
The IPO is set to go public on July 1st 2025.
2. Is the Abram Foods Limited IPO fairly priced?
The P/E Ratio based on the Weighted Average Basic EPS of 5.74/- is 17.07. The bid price is set at Rs. 98 per share.
3. Where else can we get more information about the Abram Foods Limited IPO?
You can get more information about the IPO on the BSE website. And on following resources.
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