Farm Peace IPO

Farm Peace IPO is a fixed-price issue worth ₹32 crore. The IPO consists entirely of a fresh issue of 54.24 lakh equity shares.

Socradamus Capital Private Limited is the book-running lead manager to the issue, while Bigshare Services Private Limited is the registrar. Shreni Shares Limited is the market maker for the issue. For detailed information on the company's financials, business operations and associated risks, investors are advised to refer to the Farm Peace IPO RHP.

About Farm Peace Limited

Farm Peace Limited was originally incorporated as Farm Peace Private Limited on October 20, 2021, under the Companies Act, 2013. The company was subsequently converted into a public limited company pursuant to a shareholders’ resolution passed on July 23, 2024, and its name was changed to Farm Peace Limited on October 14, 2024.

The company operates in the contract farming industry with a primary focus on the cultivation, procurement, and supply of processing-grade potato varieties used in the manufacture of French fries, potato chips, and other processed potato products. It works closely with farmers through a buy-back model, helping ensure a consistent supply of potatoes that meet the quality requirements of food processing companies.

Farm Peace sources certified seed potatoes from suppliers across key potato-producing states and distributes them to farmers participating in its contract farming network. The company also provides agronomic support, field monitoring, and technical guidance throughout the crop cycle to improve productivity and maintain quality standards.

The company’s operations are primarily concentrated in Gujarat, where it leverages favourable agro-climatic conditions for cultivating potato varieties such as Santana, Frysona, Innovator, Lady Rosetta, and Chipsona. These varieties are specifically suited for industrial processing applications and are supplied to manufacturers of frozen potato products and snack foods.

Farm Peace generates revenue mainly from the sale of processing-grade potatoes and seed potatoes. Its business model integrates seed procurement, farmer engagement, crop monitoring, cold storage management, and supply-chain coordination, enabling it to provide a reliable source of quality potatoes to institutional buyers.

The company’s growth strategy focuses on expanding its farmer network, strengthening working capital capabilities, enhancing operational efficiency, and increasing its presence within India’s growing processed potato value chain. Through its contract farming model and procurement network, Farm Peace aims to support the increasing demand for processed potato products across domestic and industrial markets.

Industry Outlook

• India’s contract farming industry is gaining importance as agricultural supply chains become increasingly organised and demand for quality produce from food-processing companies continues to rise.
• Contract farming provides farmers with assured market access, technical guidance, quality inputs, and price support, helping reduce marketing uncertainties and improve income stability.
• The processed potato segment is witnessing growing demand driven by increasing consumption of French fries, potato chips, frozen snacks, and other convenience food products.
• India remains one of the world's largest potato producers, creating significant opportunities for the expansion of potato processing and value-added agricultural products.
• Food processing companies are increasingly relying on specialised potato varieties with high dry matter content and consistent quality, supporting the growth of organised contract farming models.
• Advancements in cold-storage infrastructure, irrigation systems, superior seed varieties, and modern farming practices are expected to improve productivity and reduce post-harvest losses within the sector.
• The industry remains competitive, with success dependent on farmer relationships, procurement capabilities, quality control systems, storage infrastructure, and efficient supply-chain management.

Farm Peace IPO Objectives

The company proposes to utilise the net proceeds from the IPO for the following objectives:

• Fund incremental working capital requirements to support business growth and operational expansion.
• Strengthen liquidity requirements associated with procurement, storage, and supply-chain operations.
• Support increased procurement of seed potatoes and processing-grade potatoes during peak agricultural cycles.
• Meet higher working capital needs arising from trade receivables, inventory requirements, and operational activities.
• Enhance the company’s ability to serve a growing network of farmers and institutional customers.
• Utilise a portion of the proceeds for general corporate purposes.
• Support future growth initiatives and improve overall financial flexibility.

Financial Performance of Farm Peace Limited

Strengths and Opportunities of Farm Peace IPO

1. Established presence in the processing-grade potato contract farming segment.
2. Consistent revenue growth from ₹62.55 crore in FY24 to ₹90.83 crore in FY26.
3. Profitable operations with PAT increasing from ₹6.16 crore in FY24 to ₹7.53 crore in FY26.
4. Healthy financial metrics, including ROE of 18.96% and ROCE of 26.64% in FY26.
5. Low leverage with a debt-to-equity ratio of 0.26x as of FY26.
6. Strong relationships with farmers supported by technical guidance and field-level monitoring.
7. Focus on specialised potato varieties used by large food processing companies.
8. Growing demand for processed potato products and convenience foods in India creates long-term growth opportunities.
9. Majority of IPO proceeds earmarked for working capital, which can support business expansion and higher procurement volumes.

Risks and Threats of Farm Peace IPO

1. The company currently operates without formal contracts with farmers, increasing procurement and supply risks.
2. Business performance is heavily dependent on weather conditions, crop yields, and agricultural cycles.
3. Operations are largely concentrated in Gujarat, exposing the company to regional risks.
4. Dependence on third-party seed suppliers may affect availability and quality of inputs.
5. High customer concentration could impact revenue if key buyers reduce procurement volumes.
6. Negative operating cash flow of ₹7.17 crore in FY26 highlights working capital pressure.
7. Trade receivable days of 172 and inventory days of 101 indicate a lengthy working capital cycle.
8. The company relies on leased cold storage facilities and third-party logistics providers, creating operational dependency.
9. There are ongoing tax-related litigations involving the company, promoters, and group companies, which may create regulatory and financial risks.

Farm Peace IPO Reservation

Farm Peace IPO Promoter Holding

The promoters of the company are Sandipkumar Narsinhbhai Patel, Sudhir Haribhai Patel, Girishbhai Faljibhai Patel and Kulin Kiran Patel.

Farm Peace IPO Prospectus

• Farm Peace IPO RHP

Farm Peace IPO Registrar and Lead Managers

Farm Peace IPO Lead Managers

• Socradamus Capital Private Limited

Registrar for Farm Peace IPO

Bigshare Services Private Limited

• Contact Number: 8657578989
• Email Address: ipo@bigshareonline.com

Farm Peace IPO Registrar

How To Apply for Farm Peace IPO Online?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Farm Peace IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Check the Allotment Status of the Farm Peace IPO?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

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Contact Details of Farm Peace IPO

Registered Office: 12, Manu Panchal Industrial Estate, Nr. Indira Nagar, Amraiwadi Road, Ahmedabad, Gujarat, 380026.

Phone: 2991 7018

E-mail: investors@farmpeace.in