IPO Details
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IPO Size
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Schedule of Neufresh Foods IPO
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End date
Allotment of bids
Refund Initiation
Listing on exchange
About Neufresh Foods Ltd IPO
A 100% book-built issue, the IPO of Neufresh Foods Ltd comprises up to 20,73,000 equity shares. There’s no offer for sale in this IPO. The IPO opens on TBA and closes on TBA. The credit of shares will take place on TBA. The basis of allotment will take place on TBA and the initiation of refunds will take place on TBA.
Objectives of Neufresh Foods Ltd IPO
- Prepayment or repayment of all or a portion of certain outstanding borrowings availed by the company
- General corporate purposes
- Issue-related expenses
Neufresh Foods Ltd IPO Valuation
Neufresh Foods Ltd IPO Share Offer and Subscription Details
Investor Category Shares Offered QIBs Not more than 50% of the net issue Non-institutional Applicants Not less than 15% of the net issue Retail Individual Investors Not less than 35% of the net issue
Industry Outlook
India is the fifth largest economy in the world and expected to continue to be the fastest-growing economy among major G20 countries, with GDP growth estimated to be around 8% in FY24. The food processing sector has become a key contributor to India's economy over the past few years, thanks to progressive policy measures by the Ministry of Food Processing Industries (MoFPI).
The growing consumption of food is expected to reach US$ 1.2 trillion by 2025-26, owing to urbanisation and changing consumption patterns. The processed fruits and vegetables industry was valued at US$ 15.4 billion in 2019. The market size of the food processing sector in India is estimated to reach US$ 1,274 billion in 2027 from US$ 866 billion in 2022, backed by the rise in population, changing lifestyle and food habits due to rising disposable income and urbanisation.
Company Information
Neufresh Foods Ltd supplies frozen food products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors spread across the developed markets. Its output majorly comprises variants of vegetarian food such as processed frozen vegetables, frozen fruits, frozen ready to cook, frozen ready to eat and frozen fruit pulp and are sold under its brands owned by us i-freeze, Snacky’s, and Solitaire’s Shagun.
Neufresh Foods Ltd Strengths
Strong Supply Chain and Input Sourcing
Neufresh’s direct customers/distributor base is the HoReCa segment players in India, mainly the QSR and CDR segments. Its long-standing relationships help it to get repeat business from its customers. This has helped the company to maintain a long-term working relationship with its customers and improve its customer retention strategy.
Strong Entry Barriers in the Industry it Operates in
The company’s history of successfully partnering with its customers, combined with its track record that strengthens with each passing day, serves as a competitive advantage, acting as a moat against potential new entrants in the industry. Additionally, this fosters visibility, repeatability, and loyalty among its customers, further solidifying and strengthening its business.
Quality Compliance, Control and Quality Standards
Owing to the expertise of its experienced and trained team forming part of our Food Safety Division, all its products are manufactured strictly as per the GFSI standards. With a team of qualified food technologists and microbiologists supervising each stage, the company ensures that rigorous quality and safety standards are followed. Additionally, its facility is equipped with a laboratory for physico-chemical analysis, validating our food safety management system.
Risks of Neufresh Foods Ltd
- Godowns/Warehouses and Branch Offices aren’t Owned by the Company
At present, the company’s warehouses/ depot located in Delhi, occupied and used by the company are not owned by it and leased to it by third parties. The company enters into lease with such third parties to be able to use the warehouses/ depot. The tenure of the agreements is subject to renewal after the agreed period of time. Any change in the terms and conditions of such agreements, any premature termination of such agreements, may adversely affect its business operations and its financial conditions.
- Fluctuating Prices of Green Peas or other Fresh Fruits and Vegetables Prices May Affect its Operations
The company procures fresh green peas mainly from farmers and vegetable mandis at the existing market rates. Green peas are further processed and sold in the form of frozen green peas or prepared into food items such as frozen kebabs. The same process is followed for fresh fruits and vegetables.
The prices of these materials are subject to rapid fluctuations owing to changes in production, demand-supply forces and consumption patterns which are not within the company’s control.
- Revenue from limited number of customers
The company derives significant revenue from few of its customers and loss of one or more such customers or a reduction in demand for its products could adversely affect its business, results of operations, financial condition and cash flows.
All Financial Information about Neufresh Foods
Particulars (in Rs. crores)
Particulars (in Rs. crores)
Comparison with peers
| Company Name | Total Income (in ₹ crores) | EPS in ₹ | Return on Net Worth (in %) |
|---|---|---|---|
Neufresh Foods Ltd | 39.3971 | 3.01 | 17.83 |
Chatha Foods Ltd | 133.8320 | 3.71 | 10.68 |
Anchor Investor Bidding Date TBA
IPO Registrar and Book Running Lead Manager
- IPO Registrar: Maashitla Securities Pvt Ltd
- Book Running Lead Manager: Gyr Capital Advisors Pvt Ltd
Business Model
Supplying frozen food products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors, the company’s diversified product portfolio includes:
- Frozen Vegetables including Green Peas, Sweet Corn, Mix Veg, Coriander Leaves, Spinach or similar
- Frozen Fruits including Strawberry, Mango, Peach, Litchi, Custard Apple or similar
- Frozen Ready to Cook including Veg Chaap, French Fries, range of Tikkis, Nuggets, Samosas, Kebabs, Momos, Spring Rolls, Onion Rings or similar
- Frozen Ready to Eat including Frozen parathas which includes Range of Paratha like Malabar, Lachha, Aloo, Paneer, Mix Veg Etc
- Frozen Fruit pulp including Mango pulp, Custard Apple pulp, Strawberry pulp or similar
Company Growth Trajectory
The company’s revenue from operations increased from ₹34.0289 crores in FY 22 to ₹39.3853 crores in FY 24. Its EBITDA margin increased from 7.30% in FY 22 to 9.91% in FY 24. A broad vendor base and high-quality manufacturing facility have contributed to the company’s growth over the years.
Market Position
Founded in 2011 in the name of Solitaire Drugs and Pharma Pvt Ltd, Neufresh Foods Ltd strategically focuses on the Indian market, which consumes more than 95% of its processed foods. Its products and processes comply with stringent quality standards set by the developing market it serves.
Its capabilities in product quality, safety, service, new product development, and technical know-how have earned it the trust and confidence of QSRs and CDRs segment players who have engaged it.
Neufresh Foods Ltd Profit and Loss
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Total Income (in ₹ crores) | 39.3971 | 41.9071 | 34.0513 |
Profit Before Tax (in ₹ crores) | 1.7650 | 0.6913 | 0.6218 |
Profit After Tax (in crores) | 1.2204 | 0.5076 | 0.4527 |
EPS in ₹ | 3.01 | 1.25 | 1.12 |
Neufresh Foods Ltd Cash Flow Statement
| Parameter | FY 24 | FY 23 | FY 22 |
|---|---|---|---|
Profit Before Tax (in ₹ crores) | 1.7650 | 0.6913 | 0.6218 |
Net Cash Flow from/ (used in) Operating Activities (in ₹ crores) | 0.2592 | 0.9965 | 0.4984 |
Net Cash Flow from/ (used in) Investing Activities (in ₹ crores) | (0.12) | (0.0562) | 0.0164 |
Net Cash Flow from/ (used in) Financing Activities (in ₹ crores) | (0.1929) | (0.9220) | (0.9305) |
Cash and Cash Equivalents at the End of the Year (in ₹ crores) | 0.0381 | 0.0918 | 0.0735 |
How to Check Allotment Status of Neufresh Foods Ltd IPO?
1. Visit the Registrar’s Website
- Go to the official website of Maashitla Securities Pvt Ltd
- Choose ‘Public’ Issues from ‘Allotment Status’
- Select Company Name and enter either your PAN No, Application No or Demat Account No
- Click on ‘Submit’ to know the status
2. Check on the NSE Website
The National Stock Exchange (NSE) has an IPO Bid Verification module. You can use it to check the status of Neufresh Foods Ltd IPO. Go to www.nseindia.com and find the 'Invest' tab. Click on 'Verify IPO Bids' under 'Resources & Tools'. On the NSE IPO Bid Verification page, enter:
- Company name from dropdown
- Application number
- PAN
Then click 'Submit' to know the allotment status.
How to Apply for Neufresh Foods Ltd IPO?
- Log in to your Kotak Securities Demat account - Log in to your Demat account to access IPO investments. Next, select the current IPO section.
- Specify IPO details - Enter the number of lots and the price you wish to apply for.
- Enter UPI ID - After entering your UPI ID, click submit. This will place your bid with the exchange.
- Mandate Notification - Your UPI app will receive a mandate notification to block funds.
- Approve Request - Your funds will be blocked once you approve the mandate request on your UPI.
This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Securities Research Team, nor is it a report published by the Kotak Securities Research Team. The information presented is compiled from several secondary sources available on the internet and may change over time. Investors should conduct their research and consult with financial professionals before making any investment decisions. Read the full disclaimer here.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Please read the SEBI-prescribed Combined Risk Disclosure Document before investing. Brokerage will not exceed SEBI’s prescribed limit.
Neufresh Foods IPO FAQs
What is the Neufresh Foods Ltd IPO?
The IPO of Neufresh Foods Ltd consists of up to 20,73,000 equity shares. It’s an entirely fresh issue.
When will the IPO of Neufresh Foods Ltd go live?
The exact dates of the Neufresh Foods Ltd IPO are yet to be announced.
From where can I read more about the IPO of Neufresh Foods Ltd?
You can read more about the IPO of Neufresh Foods Ltd from the company’s draft red herring prospectus here.
