Food and beverage major Keventer Agro has filed draft papers with the Securities and Exchange Board of India (Sebi) for an initial share sale. The development comes after the company’s board cleared a proposal to raise Rs 800 crore via the IPO.
The company, a leading Kolkata-based FMCG firm with interests in packaged dairy and fresh food products, plans to retire its debt and fund incremental capital expenditure requirements via IPO.
The initial public offer (IPO) will include fresh issuance of equity shares worth Rs 350 crore and a sale offer on 10,767,664 equity shares by Mandala Swede SPV (6.16 per cent stake).
The draft red herring prospectus (DRHP) filed with Sebi says the (OFS) includes “1.53 crore compulsory convertible preference shares, which will be converted up to a maximum of 91.51 lakh shares before the filing of the red herring prospectus with the RoC, solely for the offer”.
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ICICI Securities, Axis Capital and JM Financial are the book running lead managers for the issue. The company’s range of products spans across 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 product categories.
Its packaged foods and beverage segment primarily involves manufacturing, packaging, marketing, distribution of products, which include ‘Frooti’ or ‘Appy’ or ‘B Fizz’ or ‘Appy Fizz’ or ‘Bailey’ or ‘Smoodh’. The company is a major player in the east and northeastern 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. Its total revenue in FY 2020-21 stood at Rs 836.02 crore, while the company recorded a net loss of Rs 76.17 crore in the financial year.
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