Abram Food IPO

About Abram Food IPO

Abram Food Limited IPO is an IPO of up to 14,28,000 equity shares. It consists of a fresh issue of up to 13,56,000 equity shares. The shares will be allotted on June 27, 2025. The credit of shares to the demat account will take place on June 30, 2025, and the initiation of refunds will take place on June 30, 2025.

Objective of Abram Food IPO

• To meet the capital expenditure requirements for the purchase of machinery.
• To meet the working capital requirements of the company.
• To meet general corporate purposes.

Industry Outlook

According to Inc42, the Indian agricultural sector is projected to grow to US$ 2,400 crores by 2025. India’s food and grocery market is the world’s sixth-largest, with retail contributing 70% of the sales. The Indian FMCG market continues to rise as more people start to move up the economic ladder and the benefits of economic progress become accessible to the general public. Growing awareness, easier access, and changing lifestyles have been the key growth drivers for the sector. The urban segment (which accounts for a revenue share of around 55%) is the largest contributor to the overall revenue generated by the FMCG sector in India. The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers.

Company Information

Abram Food Limited is engaged in the manufacturing and trading of chana dal, flour (chakki atta), besan, multi-grain atta, maida, sooji, spices, cattle feed (khal), and edible oils. They market and sell these products in Rajasthan, Delhi/NCR, and Uttar Pradesh under the brand name “Kherliwala” through their distributors. They also provide chana dal, atta, besan, chana churi, and cattle feed (khal) to their distributors in bulk quantities ranging from 30 to 50 kg packaging, which are sold in loose quantities to end customers through retail outlets. They follow a standard packing process to ensure that the quality and authentic taste of their product range remain intact.

Risks of Abram Food IPO

• Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which they operate is evolving and subject to change : The Government of India may implement new laws or regulations that could affect the manufacturing industry or the sectors they serve, potentially resulting in new compliance requirements.

• Their business is subject to seasonal volatility, which may contribute to fluctuations in their results of operations and financial condition : As an agri-based company, their business is sensitive to weather conditions, including extremes such as droughts and natural disasters. Adverse weather conditions may also cause volatility in commodity prices, which can influence growers' decisions regarding the types and quantities of crops to plant, consequently affecting the sales of their products.

• Their business operations are primarily concentrated in certain geographical regions, and any adverse developments affecting their operations in these regions could have a significant impact on their revenue and results of operations : Due to the geographical concentration of their manufacturing operations in Rajasthan, they are susceptible to local, regional, and environmental factors such as social and civil unrest, regional conflicts, civil disturbances, economic and weather conditions, natural disasters, demographic changes, and other unforeseen events and circumstances.

IPO Registrar and Book Running Lead Managers

Book running lead managers : Corporate Makers Capital Limited

Registrar for the IPO : KFin Technologies Limited

Business Model

The company earns its revenue by through the following sources:

• Manufacturing and trading of chana dal, flour (chakki atta), besan, multi grain atta, maida, sooji, spices, cattle feed (khal), and edible oils.

Company Growth Trajectory

Total income for the period from 1st April 2024 to 30th September 2024 stood at ₹42.35 crores. During this period, the net revenue from operations of the company was also ₹42.35 crores.

Company Market Position

As of 30th September 2024, the company’s branded products were sold in the regions of Rajasthan and Delhi & NCR, through a network of 51 distributors supported by 4 sales personnel. They have consistently added distributors to their network to further expand the reach of their brand. They regularly support their distributors with trade promotion schemes and incentives, such as target-based schemes and secondary sales promotion offers.

How To Check Allotment Status of Abram Food IPO?

You can check the allotment status of shares either on the website of the Bombay Stock Exchange (BSE) or on the website of the registrar KFin Technologies Limited. To check the status on the BSE website:

• Visit the BSE website
• Click on “Investor Services” and choose “Application Status Check”
• Choose the issue type — Equity or Debt (Equity in this case)
• Select the Issue Name from the drop-down. The issue name is the company’s name, which is Abram Food Limited
• Enter your application number or PAN number
• Check the box which says “I’m not a Robot” and click on “Search” to know the allotment status

Follow these steps to know the allotment status on the registrar’s website:

• Visit the KFin Technologies Limited website
• Choose “Public Issues” from the “Investor Services” drop-down
• Select Abram Food Limited from the drop-down
• Enter your PAN number or Application number
• Click on “Submit” to know the allotment status

How To Apply for Abram Food IPO?

• Step 1: Log in to your Kotak Securities Demat account: Log in to your Demat account to access IPO investments. Next, select the current IPO section.
• Step 2: Specify IPO details: Enter the number of lots and the price you wish to apply for.
• Step 3: Enter UPI ID After entering your UPI ID, click submit. This will place your bid with the exchange.
• Step 4: Mandate Notification: Your UPI app will receive a mandate notification to block funds.
• Step 5: Approve Request Your funds will be blocked once you approve the mandate request on your UPI.