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Farm Peace Ltd IPO
Farm Peace Ltd
₹2,36,000 /4000 sharesMinimum investment
IPO details
Minimum investment
₹2,36,000
Price range
₹59 - ₹59
Lot size
2,000
Issue size
32 Cr
Face value
10
IPO document
Subscription rate
Data will be available soon
Schedule
1 Sep 2026
IPO open date
3 Sep 2026
IPO close date
4 Sep 2026
Allotment date
4 Sep 2026
Funds unblock or debit
8 Sep 2026
Tentative listing date
About
Founded in
2021
MD/CEO
Mr Sandipkumar Narsinhbhai Patel
Parent organisation
Farm Peace Ltd
Farm Peace Financials
Revenue
Total Assets
Profit
All values are in ₹ Cr
Strengths & Risks
Strengths
Risks
The company operates a 100% buy-back model for processing-grade potatoes. Under this model, it procures farmers’ produce at pre-agreed prices and specified quality parameters, reducing their exposure to open-market price fluctuations.
The company operates in potato-growing regions of Gujarat that are suited to processing-grade varieties. It cultivates and procures potatoes in Sabarkantha, Aravalli, Mehsana and Banaskantha, where the prospectus states that soil and climatic conditions are favourable for processing-grade potatoes.
The company has expanded its farmer network and cultivation area. Its cultivation area increased from around 1,400 acres with 23,000 metric tonnes of production in FY23 to 5,660 acres with 61,680 metric tonnes in FY26. As of FY26, the company states that more than 800 farmers participated in its farming programme.
The company provides support across the potato crop cycle. Its services include seed selection, input supply, land preparation, irrigation guidance, pest and disease management, field monitoring, harvesting, grading, storage and transportation.
The company claims to have systems for reducing post-harvest losses. It provides access to temperature-controlled storage and manages transportation from farms to storage or processing facilities. It also trains farmers in harvesting, sorting, grading and packing practices.
The company supplies potatoes to multiple segments of the food processing industry. Its customers include manufacturers of frozen potato products, snack food companies and processing units producing products such as French fries, chips, starch, flakes and powders.
The company has witnessed a consistent increase in its revenue from operations and profit after tax (PAT). Revenue from operations increased from Rs 62.55 crore in FY24 to Rs 79.24 crore in FY25 and Rs 90.83 crore in FY26. PAT increased from Rs 6.16 crore to Rs 6.66 crore and Rs 7.53 crore during the same period.
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 when market prices are higher than the agreed prices or fail to follow specified cultivation and quality requirements, the company could face supply shortages, quality issues or disputes. This could also require it to procure potatoes from alternate sources at higher prices and affect its ability to meet customer requirements.
The company’s processed-grade potato cultivation is dependent on seasonal and climatic conditions, while its operations are geographically concentrated in Gujarat. Events such as droughts, unseasonal rainfall, floods, heat waves, hailstorms, cold waves, pests or crop diseases could reduce potato yields and affect processing quality. A localised crop shortfall in Gujarat could also force the company to procure potatoes from other regions at higher costs, which may affect its margins and ability to meet customer requirements.
The company’s contract farming, potato procurement, cultivation, cold storage and supply chain operations are primarily concentrated in Gujarat, with no cultivation or procurement network currently established outside the state. Any adverse political, regulatory, climatic, labour or infrastructure developments in Gujarat could disrupt its cultivation, storage and logistics operations. The company may also face higher transportation and procurement costs if it has to source potatoes from other regions, which could affect its margins and customer supply commitments.
The company is dependent on third-party suppliers for processed-grade potato seeds, with its top two seed suppliers accounting for 90.03% of total seed purchases in FY26. Purchases from these two suppliers amounted to Rs 3.62 crore (50.44%) and Rs 2.84 crore (39.59%), respectively. Further, the company has a formal written MoU with only one supplier, while most other supplier arrangements are based on commercial understanding without binding long-term commitments. Any disruption in seed availability, quality or delivery could affect planting cycles, yields and potato quality.
The company’s sales of potatoes are concentrated among a small group of customers, with its top 10 potato customers accounting for 80.68% of revenue from potato sales in FY26. Revenue from these customers stood at Rs 58.69 crore in FY26, compared with Rs 49.26 crore (82.04%) in FY25 and Rs 51.77 crore (92.70%) in FY24. Any loss of key customers, reduction in purchase volumes or changes in their procurement terms could adversely affect the company’s revenue and cash flows.
The company has recorded negative cash flows from operating activities in each of the last three fiscals of Rs 7.17 crore in FY26, Rs 17.57 crore in FY25 and Rs 1.54 crore in FY24. It also recorded negative cash flows from investing activities of Rs 0.02 crore in FY26 and Rs 3.64 crore in FY24. The negative operating cash flows were primarily due to the company’s working capital requirements, including funds tied up in trade receivables and inventories. If negative cash flows continue for an extended period, the company may face challenges in funding its operations and implementing its growth plans.
The company’s revenue is concentrated in the potato cultivation and harvesting cycle, resulting in significant seasonal fluctuations in its revenue and working capital requirements. In FY26, Q3 and Q4 together contributed 73.42% of revenue from operations, compared with 84.12% in FY25 and 91.98% in FY24. Higher cash outflows during sowing and harvesting for farmer payments, seed procurement, logistics and storage, coupled with lower cash inflows during off-season months, could create liquidity mismatches and cause fluctuations in its financial performance.
The company, its promoters, directors, key managerial personnel, senior managerial personnel and group companies are involved in outstanding legal proceedings pending at different levels. Any adverse ruling in any of these proceedings could result in financial or other liabilities and materially affect the company’s business, cash flows, results of operations and financial condition.
As of March 31, 2026, the company had outstanding borrowings of Rs 11.28 crore. Any failure to service or repay these borrowings could adversely affect the company’s financial condition and operations.
Application details
For Farm Peace IPO, eligible investors can apply as Individual investor.
| Apply as | Price band | Apply range | Lot size |
|---|---|---|---|
| Individual investor | ₹59 - ₹59 | ₹2 - ₹5 Lakhs | 2000 |