TGIF Agribusiness made a remarkable entry into the BSE SME market today, as its shares opened at ₹150, marking a substantial 61.29% increase from the issue price of ₹93. However, despite the positive debut, the stock encountered a 5% lower circuit, indicating a halt in trading activity.
The IPO subscription for TGIF Agribusiness commenced on Wednesday, May 8, and concluded on Friday, May 10, with the issue price fixed at ₹93 per share. Each lot of the IPO comprised 1,200 shares.
The company primarily operates as a horticultural business, focusing on open farming of specific fruits and vegetables, as outlined in its prospectus. Spanning over 110 acres of farmland, situated near Ajari, Kasindra, and Kojra villages in the Pindwara tehsil of Sirohi district, Rajasthan.
Comparatively, TGIF Agribusiness boasts a modest Price-to-Earnings (P/E) ratio of 13.57, as opposed to its listed peers. Raghuvansh Agrofarms Ltd and Bangalore Fort Farms Ltd exhibit higher P/E ratios of 110.74 and 59.92, respectively.
In the fiscal year from March 31, 2022, to March 31, 2023, TGIF Agribusiness witnessed a notable 12.63% increase in its Profit After Tax (PAT), alongside a 12.14% surge in revenue.
The TGIF Agribusiness IPO, valued at ₹6.39 crore, comprises a fresh issue of 6,87,600 equity shares with a face value of ₹10 each, excluding any offer-for-sale component. Proceeds from the IPO are earmarked for general corporate purposes, working capital requirements, and procurement of irrigation systems and agricultural equipment.
Bigshare Services Pvt Ltd acts as the registrar for the TGIF Agribusiness IPO, while Hem Securities Limited serves as the book running lead manager. Additionally, Hem Finlease functions as the market maker for the TGIF Agribusiness IPO.
