Abram Food Limited Reports Full Compliance in IPO Fund Utilization for H1 2025

Abram Food Limited has confirmed that its utilization of Initial Public Offering (IPO) proceeds aligns perfectly with the stated objectives for the half-year ended September 30, 2025. The company's meticulous adherence to its financial commitments underscores its commitment to transparency and responsible fund management.

IPO Fund Allocation and Utilization

According to the company's latest report, Abram Food Limited has strategically allocated its IPO proceeds across various business objectives. Here's a detailed breakdown of the fund utilization:

Objective	Amount Allocated (in Lakhs)	Amount Utilized (in Lakhs)	Unutilized Amount (in Lakhs)
Capital Expenditure for Machinery Purchase	385.00	308.83*	76.17
Working Capital Requirements	670.00	670.00	0.00
General Corporate Purpose	204.50	203.06	1.44
Issue-related Expenses	139.94	139.94	0.00
Total	1,399.44	1,321.83	77.61

*Note: Includes Rs. 240 lakhs in advances paid to vendors for machinery purchase.

Key Highlights

Capital Expenditure: The company has utilized Rs. 308.83 lakhs for machinery purchase, which includes a significant advance payment of Rs. 240 lakhs to vendors. This strategic move demonstrates Abram Food Limited's commitment to enhancing its production capabilities.
Working Capital and Expenses: The allocated funds for working capital requirements and issue-related expenses have been fully utilized, indicating efficient financial management.
Remaining Funds: Out of the total IPO proceeds of Rs. 1,399.44 lakhs, a sum of Rs. 50.28 lakhs remains in the designated escrow account with ICICI Bank.
Compliance: The utilization of IPO proceeds is in full compliance with the prescribed purposes mentioned in the offer document, as certified by the company's auditors, Gaur & Associates.

Financial Prudence and Transparency

Abram Food Limited's careful allocation and utilization of its IPO funds reflect its commitment to financial prudence and transparency. The company's decision to provide detailed breakdowns of fund usage, including the disclosure of advance payments, demonstrates its dedication to keeping investors well-informed.

The marginal amount of unutilized funds, primarily in the capital expenditure category, suggests that the company is methodically executing its expansion plans while maintaining financial flexibility for future opportunities.

This report not only fulfills regulatory requirements but also serves to build investor confidence in Abram Food Limited's financial management and growth strategies. As the company continues to deploy its IPO proceeds, stakeholders will likely keep a keen eye on how these investments translate into operational improvements and financial performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-1.48%	-9.62%	-25.09%	+5.35%	+5.35%	+5.35%

Abram Food Limited has reported significant growth in its financial results for the half-year ended September 30, 2025, alongside key board approvals and updates on its Initial Public Offering (IPO) proceeds utilization.

Financial Highlights

The company's unaudited financial results reveal a robust performance:

Particulars	Half-Year Ended Sept 30, 2025 (Rs. in lakhs)	Half-Year Ended Sept 30, 2024 (Rs. in lakhs)	% Change
Total Income	5,519.43	2,351.60	+134.70
Profit Before Tax	234.16	261.12	-10.30
Profit After Tax	180.01	204.04	-11.80
Total Assets	3,253.49	1,702.82	+91.10

Abram Food Limited's total income surged by 134.70% year-over-year, reaching Rs. 5,519.43 lakhs. However, profit before tax and profit after tax saw slight declines of 10.30% and 11.80% respectively, which may be attributed to increased operational costs during the expansion phase.

Balance Sheet Strengthens

The company's balance sheet showed significant improvement:

Total assets increased to Rs. 3,253.49 lakhs from Rs. 1,702.82 lakhs in the previous year, marking a 91.10% growth.
Trade receivables rose to Rs. 1,794.45 lakhs from Rs. 870.00 lakhs, indicating expanded business operations.
Cash and cash equivalents improved to Rs. 58.23 lakhs compared to Rs. 5.29 lakhs previously.

IPO Proceeds Utilization

Abram Food Limited successfully raised Rs. 1,399.44 lakhs through its IPO in July 2025. As of September 30, 2025, the company has utilized Rs. 1,321.83 lakhs of the proceeds:

Purpose	Amount Allocated (Rs. in lakhs)	Amount Utilized (Rs. in lakhs)	Unutilized Amount (Rs. in lakhs)
Capital Expenditure for Machinery	385.00	308.83	76.17
Working Capital Requirements	670.00	670.00	0.00
General Corporate Purpose	204.50	203.06	1.44
Issue Related Expenses	139.94	139.94	0.00
Total	1,399.44	1,321.83	77.61

The company maintains Rs. 50.28 lakhs in an escrow bank account with ICICI Bank.

Board Approvals and Appointments

The Board of Directors approved several key matters:

Appointment of M/s R Goyal And Co, Chartered Accountants (FRN 027361C) as the Internal Auditor for the period April 1, 2025, to March 31, 2026.
Unaudited financial results for the half-yearly period ended September 30, 2025.
Statement on IPO proceeds utilization.

Management Commentary

While specific management quotes were not provided, the financial results and board actions suggest that Abram Food Limited is focusing on strategic growth and operational efficiency. The significant increase in total income and assets indicates the company's expansion efforts, while the careful utilization of IPO proceeds demonstrates a commitment to planned growth and transparency.

Looking Ahead

As Abram Food Limited continues to implement its growth strategies, investors and stakeholders will likely keep a close eye on how the company manages its expanded operations and utilizes the remaining IPO proceeds. The appointment of an internal auditor also signals the company's commitment to maintaining strong financial controls and governance practices.

Note: All financial figures are based on unaudited results for the half-year ended September 30, 2025, as reported by the company.