🪔 At a Glance (50 words)
Abram Food is raising ₹13.99 Cr via a fixed price SME IPO at ₹98 per share. The desi FMCG firm makes besan, atta, oil, spices, and even cattle feed — all under “Kherliwala” brand. FY25 profit jumped 220%, but margins are thin and competition is thick. Worth a nibble? Maybe.
🌾 1. What’s Cooking at Abram Food Ltd?
Your local chakki uncle now has an IPO.
Abram Food Ltd is a homegrown Rajasthan-based FMCG company that makes and sells:
- Chana Dal
- Besan
- Chakki Fresh Atta
- Multigrain Atta
- Maida & Sooji
- Spices (Chilli, Turmeric etc.)
- Edible Oils
- Cattle Feed (Khal)
🏷️ Their products are sold in bulk (30–50kg packs) under the Kherliwala brand through distributors, who sell them in loose form at kirana stores.
🛒 Area of operations?
- Rajasthan
- Delhi/NCR
- Uttar Pradesh
So they’re basically a Tier-2 Patanjali with none of the yoga.
💰 2. IPO Fund Use – Masala Plant Expansion?
Here’s how the ₹13.99 Cr will be used:
| Objective | ₹ Cr |
|---|---|
| 🏗️ Machinery for expansion | 3.85 |
| 📦 Working capital | 6.70 |
| 🧾 General corporate use | 2.05 |
| 💼 Issue-related expenses | 1.40 |
Zero debt reduction, zero land expansion — just buying more mixers and blenders to make more besan.
🧾 3. Financials – Flavourful or Fried?
📊 FY25 vs FY24 Growth
| Metric | FY24 (₹ Cr) | FY25 (₹ Cr) | Growth |
|---|---|---|---|
| Revenue | 36.14 | 64.09 | 77% |
| PAT | 1.02 | 3.26 | 220% |
| EBITDA | 1.96 | 5.07 | 158% |
| Net Worth | 4.15 | 8.43 | 103% |
But despite all that…
- PAT Margin: 5.08%
- EBITDA Margin: 7.92%
- Debt: ₹7.13 Cr
- Employees: Just 15 people 🫠
📉 Profit growth is amazing… but margins are typical of low-value-add FMCG: no pricing power, high competition, and capex needed every 2 years.
🧮 4. Valuation – Is ₹98 Spicy or Subtle?
🧠 Let’s crunch it:
- Market Cap Post-IPO: ₹50.51 Cr
- EPS (Post-Issue): ₹6.32
- P/E: 15.52x
- P/B: 4.33
- RoNW: 38.6%
- Debt/Equity: 0.85
⚖️ Fair Value Range:
If we assume a reasonable P/E band of 12–16x on ₹6.32 EPS,
🔍 FV Range = ₹76 – ₹101
It’s not overvalued — but the premium hinges on whether FY25 is repeatable or a one-time boom.
⚙️ 5. Strengths & Weaknesses – Chakki Breakdown
✅ Strengths
- 🎯 Focused product portfolio — no distractions
- 🏭 Strong regional presence in Rajasthan/NCR
- 💼 Promoters own 93% pre-IPO, skin in the game
- 📦 Well-established B2B distribution
- 📈 Profit growth is real, not Excel-adjusted
❌ Weaknesses
- 💰 Low margins; pricing power is weak
- 🧂 FMCG is a brutally competitive space
- ⚠️ Profit jump in FY25 might be one-off
- 🧑🌾 Only 15 employees? This IPO is HR-starved
- 🚫 No QIB participation — SME only
📦 6. IPO Details – Essentials for the Thali
| Detail | Value |
|---|---|
| Issue Size | ₹13.99 Cr |
| Price | ₹98 per share |
| IPO Dates | Jun 24–26, 2025 |
| Lot Size | 1,200 shares |
| Min Investment (Retail) | ₹1,17,600 |
| Market Maker | Giriraj Stock Broking |
| Listing | BSE SME (July 1, 2025) |
| Lead Manager | Corporate Makers Capital |
Subscription numbers? Yet to be released — but retail crowd might bite just for the low valuation FMCG story.
🍛 7. EduInvesting Verdict – Is This Besan Worth the Dough?
Abram Food is a no-frills SME story: modest capex, strong regional brand, expanding topline, and thin margins.
But…
- Margins are vulnerable
- Low float = low liquidity post listing
- Not much moat vs biggies like Patanjali, Fortune, or even Shree Ram Atta
So don’t expect FMCG rerating magic here.
Verdict:
- 💸 Apply only if you want a low-fancy, margin-light, SME FMCG bet
- 📦 Might list flat, might pop if SME frenzy continues — but don’t expect Britannia returns
🏷️ Tags:
Abram Food IPO, SME IPO June 2025, besan IPO, atta manufacturer IPO, Rajasthan FMCG stock, BSE SME IPO, fixed price IPO, Corporate Makers IPO, low price IPO 2025
✍️ Written by Prashant | 📅 June 23, 2025
