Farm Peace Launches Rs 32 Crore IPO on BSE SME to Scale Potato Contract Farming

Farm Peace Limited, an integrated contract farming company focused on processed-grade potatoes, launched its initial public offering (IPO) on Tuesday. The company supplies varieties used by food processing companies to manufacture French fries, chips and other potato-based products.

The fixed-price issue comprises up to 54.24 lakh equity shares of face value Rs 10 each, offered at Rs 59 per share, aggregating to Rs 32.00 crore. The issue opened on September 1 and will close on September 3, 2026. The application lot size is 4,000 shares, with applications thereafter allowed in multiples of 2,000 shares.

The company plans to use the IPO proceeds primarily to meet its incremental working capital requirements, besides general corporate purposes. The proposed listing is also expected to improve Farm Peace's visibility and brand recognition among existing and prospective customers.

Integrated contract farming model

Incorporated in October 2021 and headquartered in Ahmedabad, Gujarat, Farm Peace specialises in processed-grade potato varieties such as Santana, Frysona, Innovator, Lady Rosetta and Chipsona.

The company follows a 100% buy-back model, under which it provides participating farmers with certified seeds, agronomic support and technical assistance throughout the crop cycle. In return, Farm Peace procures the farmers' entire produce at pre-agreed prices and quality parameters.

Under the Farm Peace brand, the company operates across Gujarat's Sabarkantha, Aravalli, Mehsana and Banaskantha districts. Its Farm Peace mobile application, launched in September 2023, is designed to improve transparency, traceability and efficiency across the cultivation cycle.

The company's potato production increased to 61,680 tonnes across more than 5,660 acres in FY2026, from 55,000 tonnes across 5,100 acres in FY2025 and 32,500 tonnes across 3,200 acres in FY2024.

Revenue and profit rise

Farm Peace reported revenue from operations of Rs 90.83 crore in FY2026, compared with Rs 79.24 crore in FY2025. EBITDA increased from Rs 9.26 crore to Rs 12.48 crore, while profit after tax rose from Rs 6.66 crore to Rs 7.53 crore. Thus, revenue grew 14.6% year-on-year, while EBITDA increased by 34.8% during FY2026.

The company's pre-IPO round was backed by Neeraj Gupta, Founder of Meru Cabs, who said the fragmented potato contract farming sector is moving towards more organised and technology-led models.

Growing processed potato demand

According to the company's Prospectus, India's contract farming market increased from an estimated $5.4 billion in FY2021 to $7 billion in FY2025 and is projected to reach $9.7 billion by FY2030.

The company said rising urbanisation, disposable incomes, modern retail and the expansion of quick-service restaurants are expected to support demand for processed potato products. Greater adoption of farm technology, quality assurance, traceability, infrastructure and improved market access could further strengthen the sector.