TGIF Agribusiness Ltd IPO: Review, Valuation, Date & GMP

TGIF Agribusiness Limited IPO  - Complete Overview

Established in 2014, TGIF Agribusiness Limited, formerly known as ARV Farmpro LLP, specializes in horticulture, focusing on growing various fruits and vegetables through open farming methods. 

The company's farm spans over 110 acres, located near the villages of Ajari, Kasindra, and Kojra in the Pindwara tehsil of Sirohi district, Rajasthan.

Primarily, the company's revenue comes from pomegranate farming, accounting for over 95% of its total revenue. Additionally, it cultivates dragon fruits, Sagwan trees, lemon, watermelon, and chili.

TGIF Agribusiness sells the majority of its products to retailers, wholesalers, retail chain stores, hypermarkets, and local markets. Furthermore, the company plans to introduce B2C model under the name of a Direct2home service, allowing local customers to place orders directly with the company. Products will be picked, packed, and delivered directly to the customer's doorstep.

TGIF Agribusiness Limited IPO Overview

TGIF Agribusiness Limited IPO date is slated to be open for subscription from May 8, 2024, to May 10, 2024. This BSE SME IPO follows a Fixed Price Issue IPO.

TGIF Agribusiness Limited IPO price is fixed at Rs.93 per share. 

The total issue size of this IPO amounts to Rs.6.39 Cr. The company has allocated shares 50% to retail investors and 50% to other investors.

 

Company Financial

Compared to the financial year ending March 31, 2023, and March 31, 2022, TGIF Agribusiness Limited has seen growth in total assets, net worth, and total revenue. The profit after tax has also increased.

(Amount in Lakhs)

Period	30 Nov 2023	31 Mar 2023	31 Mar 2022
Total Assets	282.32	187.52	65.33
Total Revenue	171.79	232.28	207.14
PAT	81.41	130.07	115.48
Net worth	190.00	175.89	45.82
Total Borrowings	67.30

 

Product-wise Revenue Break up

(Amount in Lakhs)

Particular	30 Nov 2023	31 Mar 2023	31 Mar 2022
Pomegranate	168.44	229.69	201.60
Lemon	-	-	0.98
Chilli	-	-	-
Water Melon	-	-	-
Dragon Fruit	2.23	-	-
Total	170.67	229.69	202.58

 

The Objective of the Issue

The company intend to utilize the proceeds of the Issue to fulfil the following objectives:-

1. Purchase of agricultural equipments & irrigation system;

2. To meet Working Capital requirements

3. General Corporate Purpose 

Peers of TGIF Agribusiness Limited IPO

Name of the Company	Face Value (Rs)	EPS (Rs)	P/E Ratio
TGIF Agribusiness Limited	10	6.85	13.57
Raghuvansh Agrofarms Limited	10	4.07	110.74
Bangalore Fort Farms Limited	10	0.36	59.92

 

 

 

Evaluation

The IPO is priced fixed at Rs. 93 per share.

Evaluation of P/E Ratio

• Considering the FY23 EPS of Rs 6.85 from the last year, the resulting P/E ratio is 13.58x.

• Taking into account the weighted EPS of Rs 5.79 for the last three years, the P/E ratio amounts to 16.06x.

Comparative Analysis with Listed Peers

• The industry's average P/E is 85.33x.

As a result, the IPO price range, with a P/E ratio ranging from 13.58x to 16.06x, seems fully priced to the industry average of 85.33x.

IPO's Strengths 

• Ensuring the quality of products through careful selection and control.

• Offering a broad range of diverse products.

• Led by an experienced management team.
  
  

IPO Weaknesses 

• The company's operations could be negatively affected by adverse weather conditions.

• The company's business is influenced by seasonal changes, which may cause fluctuations in financial performance.

• The company has experienced negative cash flows in the past, which may persist in the future.

• The crops grown by the company require a significant amount of time to reach maturity before they can be harvested and meet quality and quantity standards.

• The company needs to obtain approvals or licenses as part of its regular business operations.
  
  

IPO GMP Today 

The latest GMP of TGIF Agribusiness Limited has not yet started.

TGIF Agribusiness Limited IPO timetable (Tentative)

TGIF Agribusiness Limited IPO is scheduled from May 8 to May 10, 2024, with allotment on May 13, refund initiation on May 14, and listing on May 15, 2024.

Events	Date
IPO Opening Date	May 8, 2024
IPO Closing Date	May 10, 2024
IPO Allotment Date	May 13, 2024
Refund initiation	May 14, 2024
IPO Listing Date	May 15, 2024

TGIF Agribusiness Limited IPO Details 

TGIF Agribusiness Limited IPO, with a face value of Rs.10 per share, opens on May 8 and closes on May 10, 2024, offering 687,600 shares at Rs.93 per share, with a lot size of 1200 shares, aiming to raise Rs.6.39 Cr, and will be listed on BSE SME.

IPO opening & closing date	May 8, 2024 to May 10, 2024
Face value	Rs. 10 per share
Issue Price	Rs. 93 per share
Lot Size	1200
Price of 1 lot	Rs. 111,600
Issue Size	687,600 shares (aggregating up to ₹6.39 Cr)
Fresh issue	687,600 shares (aggregating up to ₹6.39 Cr)
Listing at	BSE SME
Issue Type	Fixed Price Issue IPO
Registrar	Bigshare Services Pvt Ltd

TGIF Agribusiness Limited IPO Lot Details 

For TGIF Agribusiness Limited IPO, the retail investor minimum and maximum lot investments are both 1 lot (1200 shares) at Rs.111,600 while for HNI investors, the minimum investment is 2 lots (2400 shares) at Rs.223,200.

Minimum Lot Investment (Retail)	1 lot
Maximum Lot Investment (Retail)	1 lot
Minimum Lot Investment (HNI)	2 lot

 

TGIF Agribusiness Limited IPO Reservation

Other investors share Portion	50%
Retail investors share Portion	50%

 

Promoters and Management of TGIF Agribusiness Limited

• Mr. Niraj Chhaganraj Gemawat 

• Ms. Rachana Niraj Gemawat

Pre-issue Promoter shareholding	99.80%
Post-issue Promoter shareholding	73.28%

 

TGIF Agribusiness Limited IPO Lead Managers

• Hem Securities Limited
  
  

Dividend Policy

No dividends have been paid by the Company on the Equity Shares,

 

 

Conclusion

The company operates within the horticulture sector, offering a variety of products, with pomegranate sales comprising the majority. It intends to broaden its market reach by venturing into a B2C model. However, the abrupt surge in profits has raised concern. Seasoned investors may apply in the upcoming IPO following a thorough assessment to maximize returns.

 

Finowings IPO Analysis

Hope you enjoyed the Finowings IPO Analysis. We tried our best to give every required detail about the company that you should know before applying to the IPO. 

You must consult your financial advisor before making any financial decisions. 

To Apply for the IPO, Click Here.

 

To Read the Prospectus of the Company Click Here to Download the DRHP.

 

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