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Abram Food Ltd IPO
Status:
Overview
IPO date
24 Jun 2025 to 26 Jun 2025
Face value
₹ 10 per share
Price
₹ 98 to ₹98 per share
Issue Size
1,428,000 shares
(aggregating up to ₹ 13.99 Cr)
(aggregating up to ₹ 13.99 Cr)
Allotment Date
27 Jun 2025
Listing at
NSE
Issue type
Fixed Price - SME
Sector
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T&C*
Strengths vs Risks of Abram Food Ltd
Know the pros & cons
Strengths
- Diversified range of services offered.
- Strong Client base.
- Experience of its Promoter and core management team.
- Quality Assurance.
- Cost competitiveness and time bound delivery.
Risks
- The company has certain outstanding litigation against the Company, Promoters and director, an adverse outcome of which may have an adverse impact on its reputation, business and results of operations.
- Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operate is evolving and is subject to change.
- There is a criminal litigation against its Promoter, Arpit Gupta. In case the case is decided against its Promoter, it will cause loss of reputation of the company and that may affect its business, operations and financial conditions.
- Its business is subject to seasonal volatility, which may contribute to fluctuations in the company results of operations and financial condition.
- Its manufacturing facility and corporate office & warehouse(s) are located on rental premises. If the company is unable to renew such rent agreements or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- The company derives significant portion of its revenues from Chana and Chana Dal, any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.
- Its business is dependent on the company Manufacturing Facilities. Any shutdown of operations of its Manufacturing Facilities may have an adverse effect on its business, results of operations and financial condition.
- The company has experienced negative cash flows and any negative cash flows in the future could adversely affect its financial conditions and results of operations.
- In addition to its existing indebtedness for the company existing operations, the company may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.
- Its business may expose it to potential product liability claims and recalls, which could adversely affect its results of operation, goodwill and the marketability of its products.
- Its operations are dependent on the supply of large amounts of raw material such as chana and wheat. The company does not have long term agreements with suppliers for its raw materials and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on its business and results of operations, and seasonable variations could also result in fluctuations in its results of operations.
- Its products are in the nature of commodities, and their prices are subject to fluctuations that may affect its profitability.
- The company derives significant portion of its revenue from sale of limited variety of its products. An inability to adapt to evolving consumer preferences and demand for particular products, or ensure product quality may adversely impact demand for its products and consequently its business, results of operations, financial condition and cash flows.
- Its business is operating under various laws which require it to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.
- Its results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from customers / distributors.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- Its proposed capacity expansion plans relating to the company manufacturing facility are subject to the risk of unanticipated delays in implementation and cost overruns.
- The company is subject to the risk of failures of, or a material weakness in, its internal control systems.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.
- Negative publicity could adversely affect its revenue model and profitability of the Company.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realisation of the price for its product, which may adversely affect its business operation and financial condition.
- Unfavourable local weather patterns may have an adverse effect on its business, results of operations and financial condition.
- Failures to identify and effectively respond to changing consumer preferences and spending patterns in a timely manner, may adversely affect the demand for its products, causing the company business, results of operations, financial condition and cash flows.
- The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.
- The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
- The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
- Relevant copy of educational qualification of its director are not traceable.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- Its Promoters, Directors and Key Management Personnel have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Draft Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- If the company is unable to manage its growth effectively or if the company estimates or assumptions used in developing its strategic plan are inaccurate or the company is unable to execute its strategic plan effectively, its business and prospects may be materially and adversely affected.
- If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
- If the company fails to maintain and enhance its brand and reputation, the company clients' recognition of, and trust in it, and the company business may be materially and adversely affected.
- Changes in technology may render its current technologies obsolete or requires it to make substantial investments.
- The Company is dependent on third party transportation providers for the delivery of its raw materials and products and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.
- The company has taken guarantees from Directors / Promoters and immediate relatives in relation to debt facilities provided to it.
- Its lenders have charge over the company movable properties in respect of finance availed by it.
- Our inability to accurately forecast demand for our products, and accordingly manage our inventory, may have an adverse effect on our business, cash flows, financial condition and results of operations.
- The average cost of acquisition of Equity Shares by our Promoter may be less than the Issue Price.
- Conflicts of interest may arise out of common business undertaken by our Company and our promoter Group Entities.
- We have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
- Its inability to manage growth could disrupt its business and reduce profitability. The company business strategy is to continuously grow by expanding the size and geographical scope of its businesses.
- The company is exposed to the risks of significant breaches of data security, and malfunctions or disruptions of information technology systems.
- Its promoter and promoter group will continue to retain significant control over the Company after the Initial Public Issue.
- Its promoter and promoter group will continue to retain significant control over the Company after the Initial Public Issue.
- Its majority of directors does not posses experience of any listed company.
- Its may be unable to comply with changes in environmental, health and safety, labour laws and other applicable regulations.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- We have not independently verified certain data in this Draft Prospectus.
- Any future issue of Equity Shares may dilute your shareholding and sales of our Equity Shares by our Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.
- You may be subject to Indian taxes arising out of capital gains on the sale of its Equity Shares.
Abram Food Ltd Peer Comparison
Understand the company’s industry standing
Abram Food Limited
HOAC Food India Limited
Contil India Limited
Face Value
10
10
2
Standalone / Consolidated
Standalone
Standalone
standalone
Total Income Rs. Cr.
64.0449
26.4766
32.5707
EPS-Basis
9.05
6.69
1.63
EPS-Diluted
---
---
---
NAV Per Share
22.62
29.62
7.46
P/E-Basic EPS
10.83
27.89
18.63
P/E-Diluted EPS
---
---
---
RONW(%)
38.62
21.82
18.16
Latest NAV Period
---
---
---
Latest NAV
---
---
---
How to check the allotment status of Abram Food Ltd IPO?
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Open link to the registrar using this URL (https://evault.kfintech.com/ipostatus/).
Select company from dropdown menu.
Enter details- PAN, Application number or DP client ID
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The IPO opens on 24 Jun 2025 & closes on 26 Jun 2025.
Abram Food Limited was originally incorporated as a Private Limited Company under the name of 'Sharda Edible Products Private Limited' on February 19, 2009 with the Registrar of Companies, NCT of Delhi. Further, name of the Company was changed from 'Sharda Edible Products Private Limited' to 'Sharda Edible Product Private Limited' dated April 03, 2014. Further, the name was again changed from 'Sharda Edible Product Private Limited' to 'Abram Food Private Limited' dated February 02, 2016 by the ROC, Delhi The Company thereafter got converted into Public Limited and a fresh Certificate of Incorporation dated July 10, 2024 was issued by the Registrar of Companies, Central Processing Centre.
Promoted by Mr. Brij Bhushan, Company engaged in the business of manufacturing, marketing and selling of Chana Churi, Chana Dal, Besan, Edibile Oil, Spices, Multi Grain Atta, Maida, Sooji, Cattle Feed (Khal), and flour (Chakki Atta) under their own brands 'Kheriwala'. It manufacture, trade and sell the above products to Distributors. The Company works a manufacturing facility at Alwar in Rajasthan. Company is promoted by Mr. Brij Bhushan.
Systematic procurement of raw spices, grains and pulses in their respected seasons helped the Company to provide linear quality flour, spices and other food products for the whole year. It also process/trade products like sooji, maida, mustard oil, soyabean oil, til oil and cattle feed (khal) through distributor's network which are quite often used in the kitchen. Their manufacturing facilities are accredited with FSSAI license under Food Safety and Standards Act, 2006. The Company handpick raw materials from various suppliers who procures such raw material including the Alwar Mandi, Khairthal, Bahrod Jaipur and Delhi.
Company launched the IPO of 14,28,000 Equity Shares of Rs 10 each by raising funds through fresh issue aggregating to Rs 14 Cr. in June, 2025.
Abram Food Ltd IPO will close on 26 Jun 2025.
- Diversified range of services offered.
- Strong Client base.
- Experience of its Promoter and core management team.
- Quality Assurance.
- Cost competitiveness and time bound delivery.
| S.No | Promoters Name | Pre Issue Shares | Pre Issue Percentage | Post Issue Shares | Post Issue Percentage |
|---|---|---|---|---|---|
| 1 | Brij Bhushan | 577860 | 15.51 | 577860 | 11.21 |
| 2 | Mona Singhal | 1879200 | 50.43 | 1879200 | 36.46 |
| 3 | Arpit Gupta | 754428 | 20.25 | 754428 | 14.64 |
| 4 | Aviansh Logistics Private Limi | 129912 | 3.49 | 129912 | 2.52 |
| 5 | Reeta Gupta | 128712 | 3.45 | 128712 | 2.5 |
| 6 | Arpit Gupta (HUF) | 144 | --- | 144 | --- |
| 7 | Brij Bhushan (HUF) | 144 | --- | 144 | --- |
- The company has certain outstanding litigation against the Company, Promoters and director, an adverse outcome of which may have an adverse impact on its reputation, business and results of operations.
- Changing regulations in India could lead to new compliance requirements that are uncertain. The regulatory environment in which the company operate is evolving and is subject to change.
- There is a criminal litigation against its Promoter, Arpit Gupta. In case the case is decided against its Promoter, it will cause loss of reputation of the company and that may affect its business, operations and financial conditions.
- Its business is subject to seasonal volatility, which may contribute to fluctuations in the company results of operations and financial condition.
- Its manufacturing facility and corporate office & warehouse(s) are located on rental premises. If the company is unable to renew such rent agreements or relocate on commercially suitable terms, it may have a material adverse effect on its business, results of operation and financial condition.
- The company derives significant portion of its revenues from Chana and Chana Dal, any reduction in demand or in the production of such products could have an adverse effect on its business, results of operations and financial condition.
- Its business operations are majorly concentrated in certain geographical regions and any adverse developments affecting its operations in these regions could have a significant impact on its revenue and results of operations.
- Its business is dependent on the company Manufacturing Facilities. Any shutdown of operations of its Manufacturing Facilities may have an adverse effect on its business, results of operations and financial condition.
- The company has experienced negative cash flows and any negative cash flows in the future could adversely affect its financial conditions and results of operations.
- In addition to its existing indebtedness for the company existing operations, the company may incur further indebtedness during the course of business. The company cannot assure that its would be able to service its existing and/ or additional indebtedness.
- Its business may expose it to potential product liability claims and recalls, which could adversely affect its results of operation, goodwill and the marketability of its products.
- Its operations are dependent on the supply of large amounts of raw material such as chana and wheat. The company does not have long term agreements with suppliers for its raw materials and any increase in the cost of, or a shortfall in the availability of, such raw materials could have an adverse effect on its business and results of operations, and seasonable variations could also result in fluctuations in its results of operations.
- Its products are in the nature of commodities, and their prices are subject to fluctuations that may affect its profitability.
- The company derives significant portion of its revenue from sale of limited variety of its products. An inability to adapt to evolving consumer preferences and demand for particular products, or ensure product quality may adversely impact demand for its products and consequently its business, results of operations, financial condition and cash flows.
- Its business is operating under various laws which require it to obtain approvals from the concerned statutory/regulatory authorities in the ordinary course of business and its inability to obtain, maintain or renew requisite statutory and regulatory permits and approvals for its business operations could materially and adversely affect its business, prospects, results of operations and financial condition.
- Its results of operations and cash flows could be adversely affected, if the company is unable to collect its dues and receivables from customers / distributors.
- Under-utilization of its manufacturing capacities and an inability to effectively utilize its expanded manufacturing capacities could have an adverse effect on its business, future prospects and future financial performance.
- Its proposed capacity expansion plans relating to the company manufacturing facility are subject to the risk of unanticipated delays in implementation and cost overruns.
- The company is subject to the risk of failures of, or a material weakness in, its internal control systems.
- The company could be harmed by employee misconduct or errors that are difficult to detect and any such incidences could adversely affect its financial condition, results of operations and reputation.
- The company has entered into and may continue to enter into related party transactions and there can be no assurance that such transactions have been on favourable terms.
- Negative publicity could adversely affect its revenue model and profitability of the Company.
- Fraud, theft, employee negligence or similar incidents may adversely affect its results of operations and financial condition.
- The company is subject to competition from both organized and unorganized players in the market, which may significantly affect the fixation and realisation of the price for its product, which may adversely affect its business operation and financial condition.
- Unfavourable local weather patterns may have an adverse effect on its business, results of operations and financial condition.
- Failures to identify and effectively respond to changing consumer preferences and spending patterns in a timely manner, may adversely affect the demand for its products, causing the company business, results of operations, financial condition and cash flows.
- The company intend to utilise a portion of the Net Proceeds for funding its capital expenditure requirements. The company is yet to place orders for such capital expenditure machinery.
- The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
- The objects of the Issue include funding working capital requirements of the Company, which is based on certain assumptions and estimates.
- Relevant copy of educational qualification of its director are not traceable.
- The company is heavily dependent on its Promoters and Key Managerial Personnel for the continued success of its business through their continuing services and strategic guidance and support.
- Its Promoters, Directors and Key Management Personnel have interest in the Company, other than reimbursement of expenses incurred or remuneration.
- Information relating to its production capacities and the historical capacity utilization of its production facilities included in this Draft Prospectus is based on certain assumptions and has been subjected to rounding off, and future production and capacity utilization may vary.
- If the company is unable to manage its growth effectively or if the company estimates or assumptions used in developing its strategic plan are inaccurate or the company is unable to execute its strategic plan effectively, its business and prospects may be materially and adversely affected.
- If the company is unable to source business opportunities effectively, its may not achieve the company financial objectives.
- If the company fails to maintain and enhance its brand and reputation, the company clients' recognition of, and trust in it, and the company business may be materially and adversely affected.
- Changes in technology may render its current technologies obsolete or requires it to make substantial investments.
- The Company is dependent on third party transportation providers for the delivery of its raw materials and products and any disruption in their operations or a decrease in the quality of their services could affect the Company's reputation and results of operations.
- The company has taken guarantees from Directors / Promoters and immediate relatives in relation to debt facilities provided to it.
- Its lenders have charge over the company movable properties in respect of finance availed by it.
- Our inability to accurately forecast demand for our products, and accordingly manage our inventory, may have an adverse effect on our business, cash flows, financial condition and results of operations.
- The average cost of acquisition of Equity Shares by our Promoter may be less than the Issue Price.
- Conflicts of interest may arise out of common business undertaken by our Company and our promoter Group Entities.
- We have not made any dividend payments in the past and our ability to pay dividends in the future will depend upon future earnings, financial condition, cash flows, working capital requirements, capital expenditures and restrictive covenants in our financing arrangements.
- Its inability to manage growth could disrupt its business and reduce profitability. The company business strategy is to continuously grow by expanding the size and geographical scope of its businesses.
- The company is exposed to the risks of significant breaches of data security, and malfunctions or disruptions of information technology systems.
- Its promoter and promoter group will continue to retain significant control over the Company after the Initial Public Issue.
- Its promoter and promoter group will continue to retain significant control over the Company after the Initial Public Issue.
- Its majority of directors does not posses experience of any listed company.
- Its may be unable to comply with changes in environmental, health and safety, labour laws and other applicable regulations.
- There is no monitoring agency appointed by the Company and the deployment of funds are at the discretion of its Management and the company Board of Directors, though it shall be monitored by the Audit Committee.
- Delay in raising funds from the IPO could adversely impact the implementation schedule.
- The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- The Objects of the Issue for which funds are being raised, are based on our management estimates and any bank or financial institution or any independent agency has not appraised the same. The deployment of funds in the project is entirely at our discretion, based on the parameters as mentioned in the chapter titles "Objects of the Issue".
- We have not independently verified certain data in this Draft Prospectus.
- Any future issue of Equity Shares may dilute your shareholding and sales of our Equity Shares by our Promoters or other major shareholders may adversely affect the trading price of the Equity Shares.
- You may be subject to Indian taxes arising out of capital gains on the sale of its Equity Shares.
The Issue type of Abram Food Ltd is Fixed Price - SME.
The minimum application for shares of Abram Food Ltd is 1200.
The total shares issue of Abram Food Ltd is 1428000.
Initial public issue of upto 14,28,000 equity shares of face value of Rs. 10/- each of Abram Food Limited ("AFL" or the "Company" or the "Issuer") for cash at a price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share (the "Issue Price") aggregating to Rs. 13.99 crores ("the Issue"), of which 72,000 equity shares of face value of Rs. 10/- each for cash at a price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share aggregating to Rs. 0.71 crores will be reserved for subscription by market maker to the issue (the "Market Maker Reservation Portion"). The public issue less the market maker reservation portion i.e. net issue of 13,56,000 equity shares of face value of Rs. 10/- each at a issue price of Rs. 98 per equity share including a share premium of Rs. 88 per equity share aggregating to Rs. 13.28 crores is herein after referred to as the "Net Issue". The public issue and the net issue will constitute 27.71 % and 26.32 % respectively of the post issue paid up equity share capital of the company.
The face value of the equity share is Rs. 10 and the issue price is 9.8 times of the face value.