Abram Food Limited IPO

Abram Food Limited, a well-known FMCG name hailing from Rajasthan, is planning to launch its IPO, which is scheduled to open on June 24, 2025, and close on June 26, 2025. It has a fixed price offer of ₹98 per share with a total issue size of ₹13.29 crore for 13.56 lakh equity shares. To apply for the IPO listed on the BSE SME platform, one needs to purchase a minimum lot size of 1200 shares which means an investment of ₹1,17,600. The expected listing date is July 1, 2025 and the allocation basis will be finalized on June 27, 2025.

Company Background

The company was founded in 2009 as Sharda Edible Products Private Limited and over the years Abram Food Limited (now a public company) underwent several name changes and finally transformed into a public limited company in July 2024. With their headquarters based in Alwar, Rajasthan, they have established themselves within the FMCG industry focusing on the processing of staple foods. Their flagship brand is Kherliwala which has a strong reputation in Northern India. The company traces back its roots to 1975 when Shri Gyan Chand Gupta started it with hopes of trading and producing mustard oil and dal mill products.

Operations & Product Range

Facility & Production

Abram Food has a contemporary manufacturing unit located at Matsya Industrial Area, Alwar in Rajasthan which covers an area of 3000 square meters. The facility is equipped with IoT enabled machines for grinding, drying, cleaning and packing the product as required in modern food processing technology, enabling the maintenance of quality without any chemical preservatives. As on September 2024, estimate annual manufacturing capacity includes 1685.17 MT for pulses, 129.86 MT for flour products (Atta, Besan, Sooji, Maida), and 2 MT for spices.

Brands & Market Presence

The company produces and sells under the brand “Kherliwala” and “Rajasthan Royal.” Their products include Chana Dal, Besan, Wheat Flour (Atta), Maida, Sooji, Multi Grains Atta, edible Oils (mustard, soybean til), Spices, Cattle Feed (Khal), Chana Churi and Chana Chilka. The company offered retail-branded packs, as well as bulk packs of 30-50 kilograms. The company distributes through a network of 51 distributors supported by 4 sales personnel primarily in Rajasthan, Delhi NCR and Uttar Pradesh.

Revenue Channels

Abram Food generates revenue through the manufacturing and trading of staple food products and edible oils, sold both in bulk to distributors and in retail packs to end consumers. Additionally, the business uses by-product processing to increase profits. Its distribution network in Rajasthan and Delhi-NCR is a key channel for revenue generation.

Management & Shareholding

Promoters & Shareholding

Brij Bhushan is a Promoter and Managing Director who stepped into the company in December 2023 and was appointed as Managing Director in February 2024. He has nearly 49 years of experience in the FMCG industry which is quite preeminent. Ms Mona Singhal also joined the firm in 2016 and currently heads compliance as well as governance. She is a Chartered Accountant with more than eight years of experience in auditing and compliance. Mr Arpit Gupta sits on the Board of Directors which means he works for the company too. Together, before the IPO, they represented a close to 67.33% ownership stake held by the promoters.

Board Members

Besides the promoters, Sanjay Kumar Jain is a non-executive director who has worked in the FMCG industry for more than 30 years, acquiring raw materials.