The IPO season is heating up again, and Abram Food Limited has stepped into the spotlight with its SME IPO. Known for its FMCG presence in Rajasthan and Northern India under the brand name “Kherliwala”, the company is raising funds to expand operations, improve capacity, and strengthen its financial base. Let’s take a deep dive into the Abram Food IPO, covering its price, allotment details, and the much-talked-about Grey Market Premium (GMP).
About Abram Food Limited
Established in 2009, Abram Food Limited operates in the staple food processing segment, offering products like flour (atta), pulses, besan, edible oils, and spices. The company has built a local brand reputation in the food and grocery retail space across Rajasthan, Delhi-NCR, and Uttar Pradesh. With growing demand for packaged, branded food products, Abram Food aims to capture a larger market by improving production and supply chain efficiency.
Abram Food IPO Price and Issue Details
Here’s a quick look at the key IPO figures:
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IPO Price: ₹98 per share (fixed price issue)
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Issue Size: ₹13.99 crore
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Total Shares Offered: 14.28 lakh equity shares
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Lot Size: 1,200 shares
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Minimum Investment: ₹117,600
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IPO Type: SME IPO on BSE SME platform
The IPO consists of a fresh issue only, with no offer-for-sale component. All proceeds will go directly to the company.
IPO Timeline and Allotment Dates
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IPO Open Date: June 24, 2025
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IPO Close Date: June 26, 2025
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Allotment Finalization: June 27, 2025
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Refunds & Demat Credit: June 30, 2025
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Listing Date: July 1, 2025 (on BSE SME)
Investors can check their Abram Food IPO allotment status on the registrar’s website after the allotment is finalized.
GMP (Grey Market Premium) Update
As of now, the Abram Food IPO GMP is reportedly flat or around ₹0. This means there’s no premium or discount in the grey market, indicating a neutral sentiment in terms of expected listing gains.
A flat GMP does not mean the IPO is weak—often SME IPOs see momentum closer to the listing date or post-listing as volumes build. It’s just a reflection of early demand and unofficial market expectations.
Financial Performance
Abram Food has shown strong financial growth recently:
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FY 2023–24 Revenue: ₹36.14 crore
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FY 2024–25 Revenue (estimated): ₹64.09 crore
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FY 2025 PAT (estimated): ₹3.26 crore
This impressive rise in revenue and profit suggests the company is scaling up operations effectively and may use IPO funds to maintain this growth trend.
Use of IPO Proceeds
According to the company’s draft prospectus, the funds raised through the IPO will be used for:
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Purchasing Machinery
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Working Capital Requirements
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General Corporate Purposes
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IPO-related Expenses
This indicates a clear and focused approach to business expansion and improving operational capacity.
Should You Consider Investing?
If you’re a long-term investor interested in the FMCG and food processing sector, Abram Food IPO offers exposure to a growing regional brand. The company’s performance metrics and intent to expand through modernized infrastructure are positive indicators.
However, it’s important to keep in mind that SME IPOs are less liquid compared to mainboard IPOs, and listing gains may not always be guaranteed—especially when GMP is flat. So, investment decisions should be based on your risk profile and long-term view.
Final Thoughts
The Abram Food IPO presents an opportunity to invest in a fast-growing food processing brand that’s scaling up in Northern India. While the current GMP doesn’t indicate massive listing-day excitement, the company’s fundamentals, usage of funds, and sector potential make it worth keeping on your watchlist.
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