Abram Food Ltd. is a food processing and packaging company established in 2009, offering a diverse range of food products for both domestic and international markets. The company is headquartered in New Delhi and operates under the brand name “Kherliwala,” focusing on quality and innovation in its product offerings. The Abram Food IPO, opening from June 24 to June 26, 2025, with an issue price of ₹98 per share, will support the purchase of new machinery and strengthen the company’s market position.
₹00
₹98
₹90.40
Expert Opinions
Abram Food IPO arrives amid positive sentiment in India’s agro and food processing sector, supported by robust government initiatives and steady FDI inflows. The company’s strengths include a strong distributor network across Rajasthan and Delhi-NCR, quality-focused production, and experienced leadership, which have driven impressive financial growth—revenue and profits have surged significantly over recent years.
For FY 2025, Abram Food IPO boasts an outstanding Return on Equity (ROE) of 38.62% and Return on Capital Employed (ROCE) of 56.02%, with a Net Asset Value (NAV) of ₹22.62, positioning it favorably against peers on profitability and efficiency metrics. However, risks such as ongoing litigations, recent auditor changes, regulatory uncertainties, and negative cash flows could impact future performance. From a long-term perspective, if the company sustains its operational efficiency and leverages sectoral tailwinds, it holds potential for value creation, though investors should weigh sector volatility and company-specific risks before committing.
Investor Considerations
Investors evaluating the Abram Food IPO should note the company’s strong recent performance and fundamentals, with revenue surging from ₹36.14 crore in FY2024 to ₹64.09 crore in FY2025 and profit after tax rising from ₹1.02 crore to ₹3.26 crore, reflecting robust growth and operational efficiency. The sector outlook is positive, driven by rising demand for processed food products and government support for food processing industries.
The Abram Food IPO valuation for FY2025 is based on a Price to Book Value of 4.33, PAT margin of 5.08%, and a debt/equity ratio of 0.85, indicating reasonable leverage and premium pricing. Growth prospects are supported by a strong distributor network, expansion plans, and a focus on quality and innovation. Key risk factors include ongoing litigation involving promoters, regulatory changes, weather-related supply disruptions, and the need for consistent cash flow management. For short-term investors, market sentiment and listing performance may be relevant, while long-term investors can benefit from sector tailwinds and the company’s scaling initiatives, provided operational and regulatory risks are managed effectively.
| Date | GMP | Trend |
|---|---|---|
| 29 Jun 2025 10.56 | ₹00 | Down |
| 28 Jun 2025 13.50 | ₹10 | --- |
| 27 Jun 2025 13.24 | ₹10 | --- |
| 26 Jun 2025 11.20 | ₹10 | --- |
| 25 Jun 2025 14.35 | ₹10 | --- |
| 23 Jun 2025 10.44 | ₹10 | Up |
| 21 Jun 2025 10.52 | ₹00 | --- |
| 20 Jun 2025 20.09 | ₹00 | --- |
FAQs
The Grey Market Premium showed poor accuracy in predicting Abram Food IPO’s listing performance. With a final GMP of ₹0, it suggested a flat listing around the issue price of ₹98. However, the stock listed lower at ₹90.40, resulting in a negative return of -7.76%. This led to a prediction error of 7.76%, where the GMP failed to capture the negative listing direction, reflecting weak reliability in this case.
Abram Food IPO Current GMP is ₹00.
Abram Food IPO Expected Returns is 0.00%.
Abram Food IPO estimated listing price is ₹98.