– By Dilip Davda
- The company is engaged in the business of agriculture, horticulture and allied activities as well as in trading of solar modules and related products.
- The company marked inconsistency in its top lines for the reported periods.
- Based on its recent financials and market price trends, the issue appears exorbitantly priced.
- There is no harm in staying away from this “High Risk/No Return” pricey bet.
ABOUT COMPANY:
Fresita Proteins Ltd., (FPL) erstwhile known as Sarda Proteins Ltd., is engaged in the business of agriculture, horticulture and allied activities, including cultivation, processing, trading, import, export, marketing and distribution of agricultural commodities, value-added food products and allied products.
The Company is also engaged in the trading and distribution of solar modules and renewable energy products. In line with its long-term strategy of expanding its integrated agri-food value chain and strengthening its presence in the food processing sector, the Company proposes to utilize a portion of the Net Proceeds towards investment in the equity share capital of the associates, which, upon completion of the proposed investments and acquisition of equity shares, will become subsidiaries of the Company through acquisition of a more than 51% equity stake.
The proposed funding is expected to facilitate utilization of the manufacturing plant at or near its installed capacity. 2) Brand Building, Sales and Marketing: Strengthening the market position of the Company’s products under its own brands and private label business through advertising, promotional initiatives, digital marketing, participation in trade fairs, appointment of distributors and expansion of domestic as well as international sales channels. The offer document is silent on its employees’ strength data. The offer documents were made available only on the previous eve of the RI Opening.
ISSUE DETAILS:
The company is coming out with its Rights Issue (RI) of 7479917 equity shares of Rs. 10 each at a fixed price of Rs. 120 per share to mobilize Rs. 89.76 cr. The RI opened for subscription on November 12, 2026, and will close on November 26, 2026. The company is offering RI in the ratio of 5 for 6 to its eligible stakeholders as of the record date of October 30, 2026. The company is asking for full money on application for number of shares applied. Post allotment, RI shares will be listed on BSE. The company is spending Rs. 1.00 cr. for this RI process, from the net proceeds, Rs. 70.00 cr. for investments in its subsidiaries Urja Protein India Pvt. Ltd., and Fresita Food Pvt. Ltd., and Rs. 18.76 cr. for general corporate purposes.
The RI is solely lead managed by the company itself, and MUFG Intime India Pvt. Ltd. is the registrar to the issue.
Post-RI, company’s current paid-up equity capital of Rs. 8.98 cr. (8975900 equity shares) will stand enhanced to Rs. 16.46 cr. (16455817 shares). Based on the RI pricing, the company is looking for a market cap of Rs. 197.47 cr.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted total revenue / net profit of Rs. 24.19 cr. / Rs 0.05 cr. (FY25), Rs. 16.51 cr. / Rs. 0.45 cr. (FY26). For Q1 of FY27 ended on June 30, 2026, it has earned a net profit of Rs. 1.66 cr. on a total income of Rs. 12.99 cr. It posted inconsistent financial performance for the reported periods.
DIVIDEND POLICY:
The company has not paid any dividends for the last three years. It will adopt a prudent dividend policy, based on its financial performance and future prospects. The offer document is silent on its dividend policy.
SCRIP PERFORMANCE: BASED ON BSE WEBSITE DATA: SCRIP CODE: 519242 (FV Rs. 10).
The scrip last closed on cum-right basis at Rs. 133.90 on October 29, 2026, and opened on an ex-right basis at Rs. 125.90 on October 30, 2026. Since then, it has marked a high/low of Rs. 129.80 / Rs. 111.10. The scrip last closed at Rs. 117.90 as of November 12, 2026. For the last 52 weeks’ it has posted a high/low of Rs. 166.44 / Rs. 57.13. The counter is currently under ESM: Stage 2.
The promoters’ holding has been little above 80% for the last two quarters ended on September30, 2026. The counter is well managed around the RI price, with vested interest operations.
CONCLUSION:
FPL is engaged in the business of agriculture, horticulture and allied activities as well as in trading of solar modules and related products. The company marked inconsistency in its top lines for the reported periods. Boosted margins in a pre-RI period appears window dressing to pave the way for fancy valuation of RI. Based on its recent financials and market price trends, the issue appears exorbitantly priced. There is no harm in staying away from this “High Risk/No Return” pricey bet.
Review By Dilip Davda on August, 2026
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
