Farm Peace IPO is a fixed-price issue of ₹32.00 crores, comprising an entirely fresh issue of 54.24 lakh shares. The IPO will open for subscription on Sep 1, 2026, and close on Sep 3, 2026. The allotment is expected to be finalized on Sep 4, 2026, while the shares are proposed to list on the BSE SME platform on Sep 8, 2026.
The issue price is set at ₹59 per share, with a lot size of 2,000 shares. Retail investors must apply for a minimum of 4,000 shares, requiring an investment of ₹2,36,000. HNI investors need to apply for at least 3 lots, or 6,000 shares, amounting to ₹3,54,000.
Socradamus Capital Pvt. Ltd. is the book-running lead manager, while Bigshare Services Pvt. Ltd. is the registrar. Shreni Shares Ltd. has been appointed as the market maker for the issue.
For detailed information on the company’s business, financials, risk factors, and the proposed utilisation of proceeds, investors should refer to the Farm Peace IPO Red Herring Prospectus (RHP) before making an investment decision.
Company Overview
Incorporated in October 2021, Farm Peace is an integrated contract farming company specializing in potato varieties used by food-processing companies, including Santana, Frysona, Innovators, Lady Rosetta, and Chipsona. Its potatoes are primarily supplied for the production of French fries, chips, and other processed food products.
The company operates under the “Farm Peace” brand and works with farmers across Gujarat through a 100% buy-back model. It provides farmers with certified seeds, fertilizers, pesticides, agronomic guidance, and modern cultivation practices such as drip irrigation. Farmers benefit from assured procurement at pre-determined prices, helping reduce their exposure to price volatility.
Farm Peace provides support throughout the cultivation cycle, covering seed selection, soil preparation, irrigation, crop protection, harvesting, and post-harvest handling. Its cold-storage facilities and temperature-controlled transportation help maintain product quality and minimize post-harvest losses before the potatoes reach processing companies.The company also uses its Farm Peace mobile application to support crop-cycle monitoring, farmer engagement, transparency, and traceability across its farming operations.
As of August 2026, the company operates primarily in Gujarat and has cultivated more than 5,660 acres, with annual potato production of approximately 61,680 metric tonnes. Its farmer network stood at 853 farmers as of FY26.
IPO Details
| Particulars | Details |
|---|---|
| IPO Date | 1 to 3 Sep, 2026 |
| Allotment | Fri, Sep 4, 2026 |
| Listing Date | Tue, Sep 8, 2026 |
| Face Value | ₹10 per share |
| Issue Price | ₹59 per share |
| Lot Size | 2,000 Shares |
| Issue Type | Fixed Price IPO |
| Sale Type | Fresh capital only |
| Total Issue Size | 54,24,000 shares (agg. up to ₹32 Cr) |
| Reserved for Market Maker | 2,72,000 shares (agg. up to ₹2 Cr) Shreni Shares Ltd. |
| Fresh Issue (Ex Market Maker) | 51,52,000 shares (agg. up to ₹30 Cr) |
| Net Offered to Public | 51,52,000 shares (agg. up to ₹30 Cr) |
| Shareholding Pre-Issue | 1,51,55,296 shares |
| Shareholding Post-Issue | 2,05,79,296 shares |
| Listing Exchange | BSE SME |
(Compiled from RHP and market updates)
Industry Context
- Potato is a key food and vegetable crop globally, supporting food security, farmer livelihoods and employment across cultivation, processing, storage, transportation and marketing. India contributes nearly 15% of global potato production.
- India’s potato cultivation area remained broadly stable at 2.22–2.37 million hectares between FY 2021 and FY 2025, while production increased from 54.23 million tonnes to 60.17 million tonnes, highlighting the importance of productivity improvements.
- Uttar Pradesh, West Bengal, Bihar, Gujarat and Madhya Pradesh are major production centres, together accounting for nearly 86% of India’s potato output. Gujarat contributed approximately 7.52% in FY 2025.
- Rising demand for chips, French fries, flakes and other convenience foods is encouraging specialised potato cultivation. Gujarat benefits from suitable climatic conditions, contract farming, cold storage and investments by major food-processing companies.
- Demand for processing-grade potatoes is supported by the growing consumption of packaged chips, French fries and other convenience foods, creating opportunities for organised contract farming and specialised potato cultivation.
Business Strengths
- Farm Peace’s 100% buy-back arrangement provides farmers with greater price visibility, strengthens sourcing reliability, and enables the company to maintain consistent supplies of processing-grade potatoes.
- The company assists farmers across cultivation stages by providing quality seeds, crop inputs, agronomic guidance, irrigation support, and post-harvest services, potentially improving productivity and produce quality.
- Its focus on specialised potato varieties such as Santana, Innovators, Lady Rosetta, Frysona, and Chipsona aligns its production with the requirements of food-processing companies.
- Farm Peace has expanded its cultivation base and farmer network, with more than 5,660 acres under cultivation and 853 participating farmers as of FY26, supporting growth in its potato production capacity.
- The company’s integrated approach covering cultivation support, procurement, storage and transportation helps it address the quality and supply requirements of food-processing customers.
Business Risks
- Potato cultivation remains vulnerable to adverse weather, temperature fluctuations, excessive rainfall, drought, and other climatic events that can negatively affect crop yields and overall production.
- Potato crops can be affected by pests, diseases, and other biological threats, potentially resulting in lower yields, increased cultivation costs, quality deterioration, and financial losses.
- The company relies substantially on participating farmers for cultivation and procurement, making its operations dependent on farmer participation, adherence to prescribed cultivation practices, and the availability of agricultural inputs and resources.
- Farm Peace has significant customer concentration, with its top 10 customers accounting for a substantial portion of potato and seed sales, making revenue and profitability sensitive to changes in procurement volumes, pricing negotiations, and the loss of major customers.
- The company is primarily dependent on operations and procurement in Gujarat, while its reliance on leased cold-storage facilities and third-party logistics providers exposes it to regional disruptions, storage constraints, transportation issues and potential increases in operating costs.
Financial Performance
Farm Peace Ltd. – Financials (₹ in Lakh)
| Particulars | Fiscal 2026 | Fiscal 2025 | Fiscal 2024 |
|---|---|---|---|
| Revenue from Operations | 9,082.77 | 7,924.22 | 6,255.38 |
| EBITDA | 1,248.20 | 925.99 | 929.55 |
| EBITDA Margin (%) | 13.74% | 11.69% | 14.86% |
| Profit / (Loss) After Tax (PAT) | 752.87 | 666.15 | 616.20 |
| Debt-to-Equity Ratio | 0.26 | 0.07 | 0.79 |
| Return on Capital Employed (ROCE) (%) | 26.64% | 33.74% | 88.04% |
| Return on Equity (%) | 18.96% | 29.61% | 103.38% |
(Source: RHP)
Key Ratios & Metrics
| KPI (Mar 31, 2026) | Value |
|---|---|
| Return on Equity (ROE) | 18.96% |
| Return on Capital Employed (ROCE) | 26.64% |
| Debt-to-Equity Ratio | 0.26 |
| Return on Net Worth (RoNW) | 17.32% |
| PAT Margin | 8.41% |
| EBITDA Margin | 13.74% |
| Net Asset Value (NAV per share) | ₹28.69 |
Objects of the Offer
- Funding the company’s incremental working capital requirements.
- Meeting general corporate purposes
Conclusion
Farm Peace has established a differentiated position in the agricultural value chain through its integrated contract farming model, 100% buy-back arrangement, and focus on processing-grade potato varieties. Its end-to-end support for farmers, growing cultivation base, and cold-storage and temperature-controlled logistics provide a structured approach to procurement, quality management, and supply consistency. The company’s focus on varieties used for French fries, chips, and other processed food products also gives it exposure to the expanding processed-food ecosystem.
However, the business remains closely linked to agricultural conditions and is therefore susceptible to weather fluctuations, crop diseases, yield variability, perishability, and changes in input costs. Its dependence on farmers, processing customers, and operations concentrated largely in Gujarat also presents operational and concentration risks.
Overall, investors should evaluate the company’s business model, financial performance, industry outlook, competitive positioning, valuation, and risk factors in detail, and carefully review the Red Herring Prospectus (RHP) before making an informed investment decision.
Disclaimer: Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. This content is purely for informational purposes only and should not be considered as investment advice or a recommendation. Securities quoted are for illustration purposes only and not recommendatory. Investors are requested to do their own due diligence before investing.
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