Keventer Agro Files DRHP with SEBI to Float its IPO

5 August 2022
4 mins read
Keventer Agro Files DRHP with SEBI to Float its IPO

Keventer Agro Ltd has filed its DRHP with the Securities Exchange Board of India (SEBI). This move will allow the company to raise funds by way of an initial public offering.

Let’s Take a Closer Look at the Keventer Agro IPO

  • This initial public offering consists of a fresh issuance of shares worth Rs. 350 crore.
  • It also includes an offer of sale of about 10.77 million shares by its stakeholder Mandala Swede SPV.
  • Mandala Swede SPV currently has a 6.16% stake in Keventer Agro Ltd.
  • The offer for sale also comprises compulsory convertible preference shares worth 15.35 million. Keventer Agro will convert these preference shares to up to 9.15 million shares prior to filing its red herring prospectus (RHP) with the Registrar of Companies.
  • Axis Capital, JM Financial, and ICICI Securities are the book-running managers for this issue.

Why Does Keventer Agro Ltd Plan to Go Public?

The firm aims to raise a sum of about Rs. 800 crores from its initial public offering. It will employ the proceeds worth Rs. 155 crores from this issue towards repaying debt. Moreover, a sum of approximately Rs. 110.76 crores will be utilised to fund Keventer Agro’s requirements for capital expenditure.

Who are Keventer Agro Ltd, and What Do They Do?

Keventer Agro Ltd is a Kolkata based flagship enterprise of the Keventer Group. Engaged in the fast-moving consumer goods (FMCG) industry, the company offers dairy, fresh food, and packaged products. Its wide range of products spans several categories and brands with over 90 stock keeping units or SKUs (as of March 2021).

In addition, the company’s packaged foods and beverage segment essentially comprises distributing, packaging, marketing, and manufacturing products. Some of its notable products are in collaboration with Parle Agro, such as Bailley, Frooti, Appy Fizz, Smoodh, and B-Fizz. Furthermore, the company offers UHT milk, frozen food, and milkshakes under the brand of Keventer. Moreover, the company is a key player in the northeast and east regions of India with its ice cream, milk, and frozen products.

Keventer Agro supports its business by its processing and manufacturing infrastructure, which includes a flagship facility at Barasat in West Bengal. It also has food processing facilities in West Bengal’s Durgapur, Siliguri, Midnapore, and Malda. Additionally, the company holds a food processing unit in Patna, Bihar. Keventer Agro Ltd is also in the process of setting up a food processing facility in Ranchi, Jharkhand.

The tables below provide a rundown on Keventer Agro and its financials:

Company Details
Name of the Company Keventer Agro Ltd.
Date of Incorporation 29 May 1986
Registrar of Companies (RoC) RoC-Kolkata
Class of the Company Public
Category of Company Company Limited by Shares
Sub Category of Company Non-govt company
Company Financials
Particulars As of March 2021 As of March 2020
Total Assets Rs. 7,229.15 million Rs. 7,291.94 million
Total Revenue Rs. 8,360.25 million Rs. 9,582.54 million
Profit After Tax (Rs. 761.76 million) Rs. 34.19 million

Wrapping Up

Food and beverage enterprise Keventer Agro Ltd. has filed its draft red herring prospectus (DRHP) with SEBI. With several known franchise brands, this company is one of the key players in the FMCG industry.

Since the IPO season is far from over, Keventer Agro is one of the several companies in the FMCG industry to file its DRHP. While the prospect of the company looks promising in the future, individuals looking to subscribe to the IPO must analyse the company’s strengths, weaknesses and opportunities before proceeding.

Keep an eye on the Angel One Blogs to know more about upcoming IPOs and related details!

 

Frequently Asked Questions

  1. When did Keventer Agro Ltd file its DRHP?

Keventer Agro Ltd filed a DRHP on 10 August 2021.

  1. Where is Keventer Agro Ltd based in India?

The company’s headquarters are in Kolkata, West Bengal.

  1. When will Keventer Agro IPO open for subscription?

This information is not available yet.