Food and beverage major Keventer Agro has filed draft papers with capital markets regulator Sebi to raise funds through an initial share sale.
The initial public offer (IPO) comprises fresh issuance of equity shares worth Rs 350 crore and an offer of sale of 10,767,664 equity shares by Mandala Swede SPV, according to draft red herring prospectus (DRHP).
The company, in its draft papers, said that the (OFS) includes “1.53 crore compulsory convertible preference shares, which will be converted up to a maximum of 91.51 lakh shares prior to the filing of the red herring prospectus with the RoC, solely for the purpose of the offer”.
Proceeds of the fresh issuance will be used to retire debt and to fund incremental capital expenditure requirements of the company.
The Kolkata-headquartered firm is a leading fast-moving consumer goods (FMCG) company with interests in packaged, dairy, and fresh food products.
The company’s range of products spans various brands and categories with more than 90 stock keeping units (SKUs) as of March 2021, and a presence across the value chain in fresh, frozen, and ambient long-shelf-life food products categories.
Keventer is also the franchisee for Parle Fruity, Appy, and FIZZ in the eastern region. The company is a strong player in the region with milk, ice cream, and frozen products.
Keventer Agro is the flagship enterprise of Keventer Group which has diverse interests in food and beverage, hospitality, realty, infrastructure, and exports.
As of March 2021, the company’s total income was at Rs 836.02 crore compared to Rs 958.25 crore in the preceding fiscal. Its net loss for the period under review stood at Rs 76.17 crore against a profit of Rs 3.41 crore in the previous year.
Earlier, the company’s board had cleared a proposal to raise Rs 800 crore from IPO.
ICICI Securities, Axis Capital, and JM Financial are the book-running lead managers for the issue.