TGIF Agribusiness Ltd (BSE SME)

May 8, 2024 - May 10, 2024

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IPO Reservation

Investor Category	Shares Offered	No. of Shares
Retail	47.5%	326400
Other	47.5%	326400
Market Maker	5.0%	34800
Total No. of Shares	100.0%	687600

TGIF Agribusiness Limited, formerly known as ARV Farmpro LLP, established in 2014, specializes in open field cultivation of a diverse range of fruits and vegetables. Operating primarily in Ajari, Kasindra, and Kojra regions of Rajasthan, spanning over 110 acres of leased land from promoters Niraj Chhaganraj Gemawat, Rachna Gemawat, Niraj Chhaganraj Gemawat HUF, and Vipin Moharir, the company focuses on cultivating pomegranates, dragon fruit, and timber plantations alongside seasonal produce like lemons, watermelons, and chilies. Primarily operating through a B2B model, catering to retailers, wholesalers, retail chains, hypermarkets, and mandis, TGIF Agribusiness Limited is also gearing up to directly engage customers via its upcoming B2C initiative, Direct2home Service. With a workforce of around 8 individuals across various organizational levels as of November 30, 2023, the company remains committed to delivering quality agricultural products while embracing both traditional and modern distribution channels.

IPO Details

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

Key Perfomance Indicators

KPI	Nov-23	Mar-23	Mar-22
RONW	42.85%	73.95%	252.02%
EPS (basic & Diluted)	4.28	6.85	6.08
P/BV	9.3
P/E Pre IPO	13.58

Financial Information (Restated)

Period	Nov-23	Mar-23	Mar-22	Mar-21
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

Strength Factor

Product Selection and Quality Control: TGIF Agribusiness excels in selecting premium products and ensuring stringent quality control measures. This dedication to quality enhances customer satisfaction and bolsters the company's reputation.

Diversified Product Range: With offerings ranging from pomegranates and dragon fruit to timber plantations and seasonal fruits and vegetables, TGIF Agribusiness maintains a diversified product portfolio. This diversity mitigates risks and enables the company to cater to various market segments.

Experienced Management and Operational Team: Backed by a seasoned management and operational team, TGIF Agribusiness leverages years of industry expertise to drive strategic decisions and optimize operations. Their proficiency enables the company to navigate challenges and capitalize on growth opportunities efficiently.

Risk Factor

Weather Dependency: TGIF Agribusiness is vulnerable to adverse weather patterns, which can impact crop yields and harvests, potentially affecting business operations and financial performance. Unpredictable weather conditions may lead to losses and disrupt supply chains, posing a significant risk to the company's stability.

Seasonal Variations: The Company is susceptible to seasonal fluctuations, which could result in variations in its operational results. Changes in demand for agricultural products during different seasons may affect revenue streams and profitability, requiring careful management of resources and inventory to mitigate risks associated with seasonal shifts.

Negative Cash Flows: Past instances of negative net cash flows indicate potential ongoing challenges in generating positive cash flows. Continued negative cash flows in the future could strain liquidity and hinder the company's ability to fund operations, investments, and debt obligations, potentially impacting its financial health and sustainability.

Hem Securities Limited

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