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Issue Details / Capital History
The firm is popping out with its maiden IPO of 5424000 fairness shares of Rs. 10 every at a set worth of Rs. 59 per share to mobilize Rs. 32.00 cr. The minimal utility to be made is for 4000 shares and in multiples of 2000 shares thereon, thereafter. The problem opens for subscription on September 01, 2026 and can shut on September 03, 2026. The shares shall be listed on BSE SME. The IPO represent 26.36% of the post-IPO paid-up capital of the corporate. The firm is spending Rs. 4.20 cr. for this IPO course of, and from the online proceeds of the difficulty, the corporate will make the most of Rs. 23.00 cr. for working capital, and Rs. 4.80 cr. for normal company functions. Over 13% spending for IPO course of signifies totally structured mode of the IPO.
The IPO is solely lead managed by Socradamus Capital Pvt. Ltd., whereas Bigshare Services Pvt. Ltd. is the registrar to the difficulty. Shreni Shares Ltd. is the market maker.
After issuing preliminary fairness capital at par worth, the corporate issued additional fairness shares within the worth vary of Rs. 150 – Rs. 222 between June 2024, and December 2024. It has additionally issued bonus shares within the ratio of three for 1 in August 2025. The common value of acquisition of shares by the promoters is Rs. 7.90, Rs. 9.18, Rs. 10.03, and Rs. 13.18 per share.
Post-IPO, firm’s present paid-up fairness capital of Rs. 15.16 cr. (15155296 fairness shares) will stand enhanced to Rs. 20.58 cr. (20579296 fairness shares). Based on the higher band of the IPO pricing, the corporate is searching for a market cap of Rs. 121.42 cr.
On the monetary efficiency entrance, for the final three fiscals, the corporate has posted complete revenue/ internet revenue, of Rs. 62.75 cr. / Rs. 6.16 cr. (FY24), Rs. 79.98 cr. / Rs. 6.66 cr. (FY25), Rs. 90.84 cr. / Rs. 7.53 cr. (FY26). The firm posted regular development in its high and backside strains for the reported durations.
For the final three fiscals, the corporate has reported a mean EPS of Rs. 5.05 and a mean RoNW of 26.20%. The problem is priced at a P/BV of two.06 based mostly on its NAV of Rs. 28.69 per share as of March 31, 2026, however its put up IPO NAV knowledge is lacking from the supply paperwork.
If we attribute FY26 tremendous earnings to its post-IPO totally diluted paid-up fairness capital, then the asking worth is at a P/E of 16.12, and based mostly on FY25 earnings, the P/E stands at 18.21. The problem seems totally priced based mostly on its current common earnings.
The firm has posted PAT Margins of 9.85% (FY24), 8.41% (FY25), 8.29% (FY26) and RoCE margins of 88.04%, 33.74%, 26.64%, respectively for referred durations.
All quantities in Indian Rupees crores
While the corporate has not paid any dividends for the reported durations of the supply doc, it has already adopted a dividend coverage in June 2025, based mostly on its monetary efficiency and future prospects.
Comparison with Listed Peers
As per the supply doc, the corporate has no listed friends to match with.
Farm Peace Ltd. (FPL) is an built-in contract farming firm specializing in processed-grade potato varieties like Santana, Frysona, Innovators, Lady Rosetta, and Chipsona, supplying processing corporations for manufacturing French fries, chips, and different potato-based merchandise. It gives complete help to farmers, together with seed choice, soil preparation, irrigation, pest administration, and harvesting steerage. By aligning with regional agro-climatic situations, the corporate helps farmers undertake appropriate varieties, boosting productiveness and decreasing post-harvest losses.
FPL’s buy-back preparations and technical consultancy guarantee a secure provide chain, enhancing farmer revenue and strengthening the processed potato worth chain. Its story started in October 2021 with a easy concept: to construct a farming mannequin that reduces uncertainty for farmers whereas making certain constant, high quality uncooked materials for processors. From the beginning, it selected to give attention to processing grade potato varieties which in flip are the important thing elements for frozen merchandise like French fries, potato chips, and different value-added merchandise. Contract farming is outlined as an settlement between farmers and processing or advertising and marketing corporations for the manufacturing and provide of agricultural merchandise, steadily at predetermined costs.
As on date, FPL operates primarily in Gujarat, India, beneath the “Farm Peace” model cultivating over 5,660 acres and producing 61,680 metric tonnes of potatoes yearly. Supported by its proprietary Farm Peace cell utility, it ensures transparency, traceability, and effectivity throughout the complete crop cycle. With a devoted crew and robust farmer partnerships, it has been executing large-scale farming contracts for processors in sectors reminiscent of frozen meals, fast service eating places and snack manufacturing, whereas embedding sustainability on the core of its operations.
It operates over a structured buy-back mannequin beneath which the corporate offers farmers with licensed seed varieties, agronomic help, and technical help all through the life cycle of rising the processed-grade potatoes, whereas assuring them of shopping for their produce at pre-agreed costs. By combining conventional farming practices with trendy agricultural strategies and digital instruments, FPL helps them enhance yield high quality, cut back post-harvest losses, and guarantee constant provide of high quality uncooked materials for processing purposes.
It doesn’t presently execute formal written contracts with farmers; as a substitute, the preparations are communicated via a written one pager round/word in native language (i.e., Gujarati) that’s printed and distributed amongst taking part farmers at first of every cultivation season. This word specifies the relevant forms of seeds, indicative worth and supply timelines, and serves as the idea of mutual understanding between the corporate and farmers. The communication is acknowledged verbally by farmers and evidenced via participation in seed distribution and harvest assortment processes. As of July 31, 2026, it had 14 workers on its payroll.
Merchant Banker’s Track Record
This is the 6th mandate from Socradamus Capital Pvt. Ltd., within the final three fiscals (together with the continued one). Out of the final 5 listings, 3 opened at low cost, and the remainder listed with a premium starting from 17.65% to 75.93% on the itemizing date.
Conclusion
FPL is an built-in contract farming firm specializing in processed-grade potato varieties. It is totally depending on third-party contracts for its enterprise. It is spending round 13% for its IPO course of, indicating totally structured mode of the IPO. Based on its current common monetary knowledge, the difficulty seems totally priced. Well-informed traders could park reasonable funds for long run.
Dilip Davda is a veteran monetary journalist related to the Indian inventory market since 1978. He has been contributing to print and digital media on capital markets, insurance coverage, and finance since 1985.
He is widely known for reviewing public points and non-convertible debentures (NCDs) within the main market. Drawing on over three a long time of market expertise and shut interplay with service provider bankers, his opinions give attention to detailed elementary and monetary evaluation of corporations, with a particular emphasis on SME public points.
Disclaimer: The data supplied herein is solely for academic and informational functions and doesn’t represent a suggestion, solicitation, or suggestion to purchase or promote any securities. Readers are suggested to seek the advice of a professional monetary advisor earlier than making any funding selections. Investments within the securities market are topic to market dangers. The creator doesn’t intend to spend money on the securities mentioned.
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