Abram Food IPO opens today: Key details to know before subscribing to the issue

Abram Food Limited, a Rajasthan-based packaged food manufacturer, is set to open its initial public offering (IPO) June 24. The fixed price IPO will close on Thursday with listing scheduled on the BSE SME platform on July 1.

The company aims to raise 13.99 crore rupees through a fresh issue of 14.28 lakh equity shares, priced at 98 rupees each. Retail investors can apply for a minimum of one lot, comprising 1,200 shares.

Corporate Makers Capital is the lead manager to the issue, while Kfin Technologies is acting as registrar. Giriraj Stock Broking will serve as the market maker for the offering.

The IPO will see an equal split in allotment between retail and non-institutional investors, with each category receiving 6.78 lakh shares. No allocation is reserved for qualified institutional buyers (QIBs).

Founded in 2009, Abram Food is engaged in the manufacturing and trading of food staples like chana dal, besan, flour, multigrain atta, maida, spices, cattle feed, and edible oils. It markets its products under the "Kherliwala" and "Rajasthan Royal" brands, primarily across Rajasthan, Delhi-NCR, and Uttar Pradesh through a network of distributors.

The company operates a 3,000 sq. meter manufacturing unit in Alwar’s Matsya Industrial Area and employs 15 people as of November 2024. Its offerings are supplied in bulk packaging and processed without artificial preservatives.

In FY25, Abram Food reported revenues of 64.09 crore rupees and a net profit of 3.26 crore rupees, registering a 77 percent jump in revenue and a 220 percent surge in profit year-on-year. The company’s return on equity stood at a robust 38.62 percent, with a post-issue market cap estimated at 50.51 crore rupees.

Proceeds from the IPO will be used for machinery purchase (3.85 crore rupees), working capital (6.7 crore rupees), general corporate purposes, and issue-related expenses.

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