⚡ Flash Summary

Barkat Frisian Agro Limited’s progress report for the period ended June 30, 2025, indicates that the company is utilizing IPO proceeds as planned according to the prospectus. As of June 30, 2025, PKR 73.15 million was used to repay interest-free sponsor loans. Procurement for plant and machinery has been initiated, and deliveries are expected in FY 2026. Land development and construction are in the final stages, and management is confident in completing projects within planned timelines.

📌 Key Takeaways

• 💰 IPO concluded in February 2025, raising gross proceeds of Rs. 1,232,777,001.
• 📉 Share issuance cost amounted to Rs. 71,611,128.
• ✅ Net funds available for utilization: Rs. 1,161,165,873.
• 🌱 Plant and machinery allocated Rs. 446,280,335 (50.7%).
• 🚧 Civil work and land development charges allocated Rs. 166,624,612 (18.9%).
• ⚙️ Mechanical and electrical installation allocated Rs. 75,000,000 (8.5%).
• 🏗️ Project supports and infrastructure costs allocated Rs. 119,500,053 (13.6%).
• 🏦 Loan repayment utilized Rs. 73,150,000 (8.3%) for interest-free sponsor loans.
• ✅ Plant & Machinery loan repayment: Rs. 24,115,229 (2.7%).
• ✅ Civil work & Land development charges loan repayment: Rs. 46,021,460 (5.2%).
• ✅ Project Support and Infrastructure Costs loan repayment: Rs. 3,013,311 (0.3%).
• 💵 Additional funds from above floor price: Rs. 280,610,873 to manage working capital needs.
• 🚧 Total IPO funds utilization: Rs. 105,845,784 (12.02%) of the allocated fund.
• 🏗️ Project land acquisition cost: Rs. 14.85 million.

🎯 Investment Thesis

Based on the progress report, Barkat Frisian Agro Limited is on track with its IPO fund utilization and project implementation. Management seems confident in completing the projects within planned timelines, this is a HOLD signal. Until project completetion and the first finacial numbers are release, it is hard to make an investment decision. Price target will depend on the successful execution and financial performance. Time horizon: Medium Term.