A Gujarat-based integrated contract-farming company specialising in processing-grade potatoes opens its Rs 32 crore BSE SME issue on September 1
An integrated contract-farming company specialising in processed-grade potato varieties plans to raise Rs 32 crore via a fixed-price SME listing on BSE SME.
Farm Peace Ltd (FPL), a Gujarat-based agri-supply company operating under the Farm Peace brand and incorporated in October 2021, opens for subscription on September 1 with the issue closing on September 3.
The company operates in a distinctive corner of agri-business — integrated contract farming focused specifically on processing-grade potato varieties.
It cultivates and supplies varieties like Santana, Frysona, Innovators, Lady Rosetta and Chipsona to processing companies that manufacture French fries, chips and other potato-based products.
This is a business built to sit between the farmer and the food processor, smoothing out the supply chain for both.
The model runs on a structured buy-back arrangement. FPL provides participating farmers with certified seed varieties, agronomic support and technical assistance across the crop life cycle — seed selection, soil preparation, irrigation, pest management and harvesting guidance — while assuring them of buying their produce at pre-agreed prices.
The company aligning variety choice with regional agro-climatic conditions aiming to boost productivity, cut post-harvest losses, and ensure a consistent, specification-compliant supply of raw material for processors. The founding idea, from October 2021, was to reduce uncertainty for farmers while giving processors reliable, quality inputs.
The operating base is meaningful. FPL operates primarily in Gujarat, cultivating over 5,660 acres and producing 61,680 metric tonnes of potatoes annually, and executes large-scale farming contracts for processors across frozen foods, quick-service restaurants and snack manufacturing.
It runs a proprietary Farm Peace mobile application supporting transparency, traceability and efficiency across the crop cycle — from field-data capture to harvest collection.
One structural nuance is important. FPL does not presently execute formal written contracts with farmers. Instead, arrangements are communicated through a written one-page circular in Gujarati, distributed at the start of each cultivation season, specifying seed varieties, indicative price and delivery timelines.
This is acknowledged verbally by farmers and evidenced through participation in seed distribution and harvest collection — an informal contracting basis that underpins the entire buy-back model. The company had just 14 employees as of July 31, 2026 — a very lean, coordination-focused operation.
Issue Details
| Particulars | Details |
|---|---|
| Issue Opens | September 1, 2026 |
| Issue Closes | September 3, 2026 |
| Listing | BSE SME |
| Listing Date | September 8, 2026 |
| Issue Type | Fixed Price |
| Price | Rs 59 per share |
| Face Value | Rs 10 |
| Issue Size | Rs 32.00 crore (54,24,000 shares, entirely fresh) |
| Min. Application | 4,000 shares (multiples of 2,000 thereafter) |
| Min. Retail Investment | Rs 2,36,000 |
| Post-IPO Market Cap | Rs 121.42 crore |
| IPO as % of Post-IPO Capital | 26.36% |
| Lead Manager | Socradamus Capital Pvt. Ltd. |
| Market Maker | Shreni Shares Ltd. |
| Registrar | Bigshare Services Pvt. Ltd. |
The issue is entirely a fresh issue. From the net proceeds, FPL will utilise Rs 23.00 crore for working capital and Rs 4.80 crore for general corporate purposes, with Rs 4.20 crore spent on the IPO process itself. That IPO-cost share — over 13% of the raise — is high, and the source note reads it as a sign of a fully-structured issue.
Two capital-history points stand out. Post-IPO, paid-up equity rises from Rs 15.16 crore (1,51,55,296 shares) to Rs 20.58 crore.
And the pre-IPO history shows the company issued further equity in the Rs 150–222 range between June and December 2024, then issued bonus shares in a 3:1 ratio in August 2025; the promoters’ average cost of acquisition is Rs 7.90, Rs 9.18, Rs 10.03 and Rs 13.18 per share — against the Rs 59 offer price.
GMP Watch
Grey-market interest has been absent. As of the days around opening, no recorded grey-market premium had formed for the Farm Peace IPO — trackers showed a GMP of ₹0, offering no directional signal on listing-day demand.
As always, GMP is unofficial, unregulated and for a thin SME grey market can move on low volume — treat it as one data point, not a forecast.
Financial Performance
| Particulars (Rs cr) | FY24 | FY25 | FY26 |
|---|---|---|---|
| Total Income | 62.75 | 79.98 | 90.84 |
| Net Profit (PAT) | 6.16 | 6.66 | 7.53 |
| PAT Margin (%) | 9.85 | 8.41 | 8.29 |
| RoCE (%) | 88.04 | 33.74 | 26.64 |
Revenue has grown steadily — from Rs 62.75 crore in FY24 to Rs 90.84 crore in FY26 — and, unlike several concurrent SME issues, without a suspicious pre-IPO profit spike.
Net profit rose gradually from Rs 6.16 crore to Rs 7.53 crore, but the notable feature is that PAT margin actually softened slightly, from 9.85% to 8.29%, as the business scaled. This is genuine, if modest, growth — stable rather than exceptional.
The company reported an average EPS of about Rs 5.05 and an average RoNW of 26.20% over three fiscals. The declining RoCE (from a very high 88.04% in FY24 to 26.64% in FY26) largely reflects a growing asset and working-capital base as the company scaled cultivation.
On book value, the issue is priced at a P/BV of 2.06 on the March 31, 2026 NAV of Rs 28.69 (the post-IPO NAV disclosure is missing from the offer document).
On earnings, the FY26-annualised P/E is about 16.12x and the FY25 P/E about 18.21x — so on recent average earnings, the issue looks fully priced rather than cheap.
Peer Comparison
As per the offer document, the company has no listed peers to compare with. That leaves the valuation without a direct benchmark — there is no comparable listed contract-farming or processing-grade-potato supplier to anchor the multiple against.
Risks to Consider
Full dependence on third-party contracts is the headline risk. FPL’s entire business rests on buy-back arrangements with processors and cultivation arrangements with farmers, so any loss of a major processor customer or breakdown in farmer participation could hit the model directly.
Informal contracting is a structural concern. The company does not execute formal written contracts with farmers — arrangements rest on a one-page seasonal circular acknowledged verbally — which introduces enforceability and supply-continuity risk if farmers default or divert produce, especially when open-market potato prices spike above the pre-agreed buy-back price.
Agricultural and weather risk is inherent. Potato yields and quality depend on weather, pest and disease conditions; a poor season could compress volumes and margins, and the business is exposed to the seasonality of a single crop.y.
On average earnings the issue is fully priced as per analysts with no listed anchor, the high (~13%) IPO-cost ratio and the very lean 14-person team are notable, and SME-platform liquidity plus the large Rs 2.36 lakh minimum retail ticket add to the risk profile.