Zarea Limited is gearing up to raise Rs. 1 billion through its Initial Public Offering (IPO) on the main bourse, with the book-building phase scheduled for February 10-11, 2025, and the retail subscription period set for February 17-18, 2025.
The company will offer 62.5 million shares, representing 23.81 percent of its post-IPO paid-up capital, at a floor price of Rs. 16 per share. The IPO will be conducted through a 100 percent book-building mechanism, with Topline Securities and Growth Securities serving as joint consultants and book runners.
Zarea operates on a globally successful business model, similar to India’s OFBusiness and Infra.Market, both of which have achieved multi-billion-dollar valuations. Since its inception in 2020, Zarea has rapidly expanded its footprint, now operating in over 30 cities, facilitating more than 11,000 transactions, and recording a traded volume exceeding 300,000 metric tons.
The company has shown impressive financial growth, with a compound annual growth rate (CAGR) of 287 percent in net profit and 235 percent in revenue over the past three years. For the first half of FY25, Zarea’s net profit has already surpassed its full-year earnings for FY24.
Proceeds from the IPO will be used to expand Zarea’s operations, including investments in Agri Biomass, in-house logistics, and technology upgrades. The company also plans to diversify into new commodity categories such as fertilizers, chemicals, and agricultural perishables. Additionally, Zarea benefits from a 10-year tax holiday under the Special Technology Zone Authority (STZA) license, further strengthening its growth prospects.
