Keventer Agro IPO - 7 Things to Know
Keventer Agro Ltd, a food and dairy based FMCG company in Eastern India, had filed the DRHP for its proposed IPO back in mid-2021 and has got approval from SEBI in December 2021. However, the final dates of the IPO are still awaited, and the company has been waiting for an opportune moment and supportive markets for the IPO date announcement.
7 Important Things to Know About Keventer Agro Ltd IPO
1) Keventer Agro Ltd has filed for a Rs.800 crore IPO with SEBI which comprises of a fresh issue of Rs.350 crore and an offer for sale of OFS of Rs.450 crore. The IPO will also include the conversion of 15.35 million compulsorily convertible preference shares (CCPS) which will be converted into 9.15 million shares of the company.
2) Out of the total issue of Rs.800 crore, let us look at the OFS portion first. The OFS will entail the sale of 1,07,67,664 shares adding up to approximately Rs.450 crore. The final valuation of the Keventer Agro IPO will only be known once the IPO price band is announced. Mandala of Singapore, which holds 6.16% in Keventer, will be one of the major early investors taking an exit from Keventer Agro.
3) Keventer Agro Ltd will use Rs.155 crore out of the fresh issue proceeds for repayment / prepayment of debt while another Rs.111 crore out of the fresh issue will be utilized for capital expenditure. The company shares have a face value of Rs.5 and it is predominantly in the fast moving consumer goods (FMCG) space.
4) The company is also looking at a pre-IPO placement of Rs.50 crore ahead of the IPO, in which case the size of the IPO would be reduced proportionately. Currently, the promoters hold 80% stake in the company which is expected to reduce to 70% post the IPO due to the combined impact of the fresh issue and the OFS.
5) Keventer Agro is a key player in East India in the area of dairy products, packaged foods and fresh foods. It has more than 90 SKUs. It has franchised some of the marquee brands from Parle Agro including Frooti, Appy, Appy Fizz and Bailey. Under the Keventer brand, the company also offers frozen foods, UHT milk, milk shakes and bananas.
6) The products of Keventer are predominantly distributed across the Eastern states of Bihar, Jharkhand, West Bengal and Odisha. It also has a strong franchise in the North Eastern states like Manipur, Mizoram, Assam, Arunachal Pradesh, Meghalaya, Nagaland, Tripura and Sikkim. It is now also expanding to other parts of India.
7) The IPO of Keventer Agro Ltd will be lead managed by ICICI Securities, Axis Capital and JM Financial. They will act as the book running lead managers or BRLMs to the issue.
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