Neufresh Foods IPO

Neufresh Foods IPO

-- / --

Neufresh Foods IPO Details

Issue Date

--

Price Range

--

Lot Size

--

IPO Size

N/A

Schedule of Neufresh Foods IPO

Start date

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.

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.

Loading chart...

Comparison with peers

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

Neufresh Foods Ltd Cash Flow Statement

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 Neo 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.

Neufresh Foods IPO FAQs

The Neufresh Foods IPO opens for subscription from [-] to [-], with a total issue size of [-]. The IPO price band is ₹[-] per share with a lot size of [-]. The company aims to list the shares on BSE & NSE on [-].

The Neufresh Foods IPO will open for subscription on [-] and will close on [-] for investors.

The minimum lot size for the Neufresh Foods IPO is [-] equity shares, requiring a minimum investment of ₹[-] for retail investors applying in the IPO.

The price band of the Neufresh Foods IPO has been fixed at ₹[-] per equity share.

You can apply for the Neufresh Foods IPO online through the Kotak Neo Website or the Kotak Neo App using UPI or ASBA during the IPO subscription period.

Neufresh Foods IPO allotment will take place on [-].

You can check the Neufresh Foods IPO allotment status online on the registrar’s website or on the NSE and BSE IPO allotment pages using your application number, PAN, or demat account details.

Neufresh Foods shares will list on the stock exchanges on [-].

The IPO of Neufresh Foods Ltd consists of up to 20,73,000 equity shares. It’s an entirely fresh issue.

The exact dates of the Neufresh Foods Ltd IPO are yet to be announced.

You can read more about the IPO of Neufresh Foods Ltd from the company’s draft red herring prospectus here.

This article is for informational purposes only and does not constitute financial advice. It is not produced by the desk of the Kotak Neo Research Team, nor is it a report published by the Kotak Neo 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.

Trending IPOs