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01 May 2024

TGIF Agribusiness Limited IPO

TGIF Agribusiness Ltd. (TAL) is primarily a horticulture company engaged in open farming of certain fruits and vegetables. Its farmland is spread over an area of over 110 acres and is situated in the vicinity of three villages i.e. Ajari, Kasindra and Kojra, all of which are located in the tehsil of Pindwara, district Sirohi, Rajasthan. It has obtained all farm lands on lease basis from promoters. The company is mainly engaged in the farming of pomegranate which contribute to more than 95% of its revenue from operations. TGIF Agribusiness IPO is a fixed price issue of Rs 6.39 crores.

The issue is entirely a fresh issue of 6.88 lakh shares.TGIF Agribusiness IPO opens for subscription on May 8, 2024 and closes on May 10, 2024. TGIF Agribusiness IPO price is ₹93 per share. The minimum lot size for an application is 1200 Shares. Hem Securities Limited is the book running lead manager of the TGIF Agribusiness IPO, while Bigshare Services Pvt Ltd is the registrar for the issue. The market maker for TGIF Agribusiness IPO is Hem Finlease.

TGIF Agribusiness IPO Overview

Detail	Description
IPO Date	May 8, 2024 to May 10, 2024
Listing Date	[.]
Face Value	₹10 per share
Price	₹93 per share
Lot Size	1200 Shares
Total Issue Size	687,600 shares (aggregating up to ₹6.39 Cr)
Fresh Issue	687,600 shares (aggregating up to ₹6.39 Cr)
Issue Type	Fixed Price Issue IPO
Listing At	BSE SME
Share holding pre issue	1,900,000
Share holding post issue	2,587,600
Market Maker portion	34,800 shares Hem Finlease

TGIF Agribusiness IPO Timeline (Tentative Schedule)

Detail	Description
IPO Open Date	Wednesday, May 8, 2024
IPO Close Date	Friday, May 10, 2024
Basis of Allotment	Monday, May 13, 2024
Initiation of Refunds	Tuesday, May 14, 2024
Credit of Shares to Demat	Tuesday, May 14, 2024
Listing Date	Wednesday, May 15, 2024
Cut-off time for UPI mandate confirmation	5 PM on May 10, 2024

TGIF Agribusiness IPO Lot Size

Application	Lots	Shares	Amount
Retail (Min)	1	1200	₹111,600
Retail (Max)	1	1200	₹111,600
HNI (Min)	2	2,400	₹223,200

TGIF Agribusiness IPO Reservation

Investor Category	Shares Offered
Retail Shares Offered	50% of the net offer
Other Shares Offered	50% of the net offer

TGIF Agribusiness IPO Promoter Holding

Share Holding Pre Issue	99.80%
Share Holding Post Issue	73.28%

Company & Financials

The company was founded in 2014, TGIF Agribusiness Limited, previously known as ARV Farmpro LLP, is active in the open field cultivation of fruit and vegetable varieties. TGIF is engaged in the cultivation of pomegranates, dragon fruit and timber plantations, i.e. sagwan trees. The company also grows and harvests seasonal vegetables and fruits such as lemons, watermelons and chilies. The company's farmlands are located in Ajari, Kasindra and Kojra in Rajasthan and cover an area of over 110 acres. The land has been leased from Niraj Chhaganraj Gemawat (promoter), Rachna Gemawat (promoter), Niraj Chhaganraj Gemawat HUF and Vipin Moharir. The company sells most of its products through a B2B business model to retailers, wholesalers, retail chains, hypermarkets and mandis. The company also plans to sell its products directly to customers through a B2C model called Direct2home Service. Apart from the farming of pomegranate it is also engaged in the farming and cultivation of dragon fruits and Sagwan trees. In the last three financial years, it has also gown and harvested lemon, water melon and chilly.

TGIF Agribusiness Limited Financial Information

Period Ended	30 Nov 2023	31 Mar 2023	31 Mar 2022	31 Mar 2021
Assets	282.32	187.52	65.33	291.62
Revenue	171.79	232.28	207.14	181.59
Profit After Tax	81.41	130.07	115.48	38.18
Net Worth	190.00	175.89	45.82	257.91
Total Borrowing	67.30
Amount in ₹ Lakhs

Key Performance Indicator

KPI	Values
RoNW	42.85
P/BV	9.3
PAT Margin (%)	47.7

	Pre IPO	Post IPO
EPS (Rs)	6.85	4.72
P/E (x)	13.58	19.71

Objectives of TGIF Agribusiness IPO

The company intends to utilize the proceeds of the Issue to meet the following objectives:

1. Purchase of agricultural equipment & irrigation system.
2. To meet Working Capital requirements.
3. General Corporate Purpose.

TGIF Agribusiness IPO Review

This horticulture company is engaged in farming of certain fruits and vegetables. It posted minuscule top lines with an average 53% net earnings, which is very surprising and raises concern over its sustainability going forward. Based on FY24 annualized super earnings, the issue appears fully priced. Tiny post-IPO equity capital indicates longer gestation for migration. Well-informed/cash surplus investors may park moderate funds for the medium to long term rewards.

FAQs for TGIF Agribusiness IPO

What is the TGIF Agribusiness IPO?

TGIF Agribusiness IPO is a book-built issue of Rs 6.39 crores. This upcoming IPO is a fresh issue of 6.88 lakh equity shares. The offer-for-sale component is not available on this issue. The allotment for this new IPO is expected to be finalised on Monday, May 13, 2024.
Who are the lead managers for the TGIF Agribusiness Limited IPO?

Hem Securities Limited is appointed as the lead manager for the IPO.
When will TGIF Agribusiness IPO allotment status?

The TGIF Agribusiness IPO allotment status will be available on or around May 13, 2024.
When will TGIF Agribusiness IPO list?

The TGIF Agribusiness IPO list date is not yet available. The TGIF Agribusiness IPO is planned to list on May 15, 2024, at BSE SME.