IPO Overview
Incorporated in October 2021, Farm Peace Limited is an integrated contract farming company based in Gujarat, specialising in the cultivation and supply of processed-grade potato varieties including Santana, Frysona, Innovator, Lady Rosetta, and Chipsona. The company operates under a 100% buy-back model — it supplies certified seeds to farmers, provides end-to-end agronomic support across seed selection, soil preparation, irrigation, fertiliser management, pest control, harvesting, and post-harvest handling, and then purchases the contracted crop back from farmers at pre-agreed quality parameters and prices. The company operates primarily in Gujarat across the districts of Sabarkantha, Aravalli, Mehsana, and Banaskantha, cultivating over 5,660 acres and producing 61,680 metric tonnes of processing-grade potatoes annually. Farm Peace supplies its produce to frozen food manufacturers, quick-service restaurant chains, and snack manufacturing companies.
The Farm Peace IPO is a fresh issue SME IPO of 54,24,000 equity shares aggregating up to ₹32 crore, priced at a fixed price of ₹59 per share. The IPO opens on 1 September 2026 and closes on 3 September 2026, with listing expected on 8 September 2026 on the BSE SME platform.
IPO Detailed Information
Issue Details
| Parameter | Details |
| IPO Type | Fixed Price – SME |
| Listing Exchange | BSE SME |
| IPO Open Date | 1 September 2026 |
| IPO Close Date | 3 September 2026 |
| Allotment Date | 4 September 2026 (Expected) |
| Refund Initiation | 7 September 2026 |
| Credit to Demat | 7 September 2026 |
| Listing Date | 8 September 2026 (Tentative) |
| Issue Price | ₹59 per share (Fixed Price) |
| Face Value | ₹10 per share |
| Lot Size | 2,000 shares |
| Minimum Investment (Retail) | ₹2,36,000 (2 lots = 4,000 shares) |
| Issue Size | ₹32 crore |
| Fresh Issue | 54,24,000 shares (₹32 crore) |
| Offer For Sale (OFS) | Nil |
Note: The entire IPO is a fresh issue — no offer-for-sale component. All proceeds go directly to the company.
Issue Break-up
| Category | Allocation |
| Qualified Institutional Buyers (QIB) | 0% |
| Non-Institutional Investors (NII/HNI) | ~50% |
| Retail Individual Investors (RII) | ~50% |
| Market Maker | Reserved Portion |
OFS / Selling Shareholders
There is no Offer For Sale (OFS) in this IPO. The entire issue is a fresh issue, and all IPO proceeds will be received directly by the company for business use.
Objects of the Issue (Fund Utilization)
The company plans to use the net IPO proceeds primarily for funding incremental working capital requirements and for general corporate purposes.
- Funding incremental working capital requirements — primary use
- General corporate purposes — remaining proceeds
Lead Managers & Registrar
- Book Running Lead Manager: Socradamus Capital Pvt. Ltd.
- Registrar to the Issue: Bigshare Services Pvt. Ltd.
- Email: [email protected]
Promoters & Management
The company is promoted by four individuals: Mr. Sandipkumar Narsinhbhai Patel, Mr. Sudhir Haribhai Patel, Mr. Girishbhai Faljibhai Patel, and Mr. Kulin Kiran Patel. The promoters bring domain expertise in agricultural operations, contract farming management, and regional agri-supply chain networks across Gujarat.
Company Details
Farm Peace Limited is an integrated contract farming company focused on processed-grade potato cultivation in Gujarat. The company operates an asset-light, leasing-heavy model — it does not own large cold storage or processing infrastructure but instead works through a network of contracted farmers and third-party logistics and storage providers. It offers comprehensive agronomic support to farmers and aligns cultivation practices with regional agro-climatic conditions to boost productivity and reduce post-harvest losses.
Sectors Served:
- Frozen Food Manufacturers (French fries, potato-based snacks)
- Quick Service Restaurants (QSR chains)
- Snack & Chips Manufacturing Companies
Key Potato Varieties Cultivated:
- Santana, Frysona, Innovator, Lady Rosetta, Chipsona — all processing-grade varieties
Key Capabilities:
- 100% buy-back model ensures farmer loyalty and crop procurement certainty
- End-to-end agronomic support from seed selection to post-harvest handling
- Engaged 853 farmers across four districts in FY26
- Cultivating over 5,660 acres, producing 61,680 metric tonnes of potatoes annually
Certifications:
- FSSAI Registered
- Follows protocols consistent with ISO 9001:2015 quality management standards
Geographic Presence:
- Sabarkantha, Aravalli, Mehsana, and Banaskantha districts of Gujarat
Financial Snapshot
| Period | Total Income (₹ Cr) | PAT (₹ Cr) | EBITDA (₹ Cr) |
| FY24 | ₹62.75 | ₹6.16 | ₹9.30 |
| FY25 | ₹79.98 | ₹6.66 | ₹9.26 |
| FY26 | ₹90.84 | ₹7.53 | ₹12.49 |
Key Financial Metrics
- Revenue from operations grew consistently from ₹62.55 crore in FY24 to ₹79.24 crore in FY25 and ₹90.83 crore in FY26, while PAT increased from ₹6.16 crore to ₹6.66 crore and ₹7.53 crore during the same period.
- EBITDA margin improved to 13.74% in FY26, and the derived post-issue P/E stands at approximately 16.1x based on FY26 earnings.
- ROE of 18.96% and ROCE of 26.64% as of FY26, with a low debt-to-equity ratio of 0.26x.
- EPS (FY26): ₹4.97 per share
Company Strengths
- Operates a 100% buy-back model — the company supplies certified seeds and provides comprehensive agronomic support, then purchases the contracted crop back at pre-agreed quality parameters and prices, ensuring farmer loyalty and procurement certainty.
- Consistent revenue growth and profitable operations with healthy financial metrics including ROE of 18.96% and ROCE of 26.64% in FY26.
- Asset-light, leasing-heavy business model with minimal fixed asset base — providing high operational agility and capital efficiency
- Strong capital efficiency demonstrated by a robust ROCE within the regional Gujarat network, without requiring heavy cold storage infrastructure investment.
- Growing domestic demand for processed potato products, French fries, and convenience foods from QSR chains and snack manufacturers creates strong long-term tailwinds
- Deep farmer network of 853 farmers across four Gujarat districts, backed by technical guidance and field-level monitoring
Key Risks & Challenges
- The company does not currently enter into formal written contracts with farmers and relies on verbal arrangements for potato procurement — if farmers choose to sell their produce to third parties at higher market prices, the company could face supply shortages, quality issues, or disputes.
- Negative operating cash flow of ₹7.17 crore in FY26, with trade receivable days of 172 and inventory days of 101, indicating a lengthy and capital-intensive working capital cycle.
- Revenue is highly seasonal — in FY26, Q3 and Q4 together contributed 73.42% of annual revenue, and higher cash outflows during sowing and harvesting cycles could create liquidity mismatches during off-season months.
- Business performance is heavily dependent on weather conditions, crop yields, pest attacks, and agricultural cycles — factors outside management control
- The company relies on leased cold storage facilities and third-party logistics providers, creating operational dependency on external parties.
- Short operating history — incorporated only in October 2021 — with operations currently concentrated mainly in Gujarat, limiting geographic diversification.
Disclaimer:
This document is for informational purposes only and should not be considered as investment advice. Investors should read the Red Herring Prospectus (RHP) carefully and consult a financial advisor before investing in any IPO. Market investments are subject to risk.
