Mumbai: Capricorn Food Products India Ltd on Tuesday filed the draft red herring prospectus (DRHP) for its initial public offering (IPO).
The share sale will comprise a fresh issue worth Rs171 crore, while the promoters and private equity fund Quadria Capital will sell 7.64 million shares in an offer for sale, according to the share sale documents. Quadria Capital had invested $10 million in the company in 2013 out of its India Build-Out Fund-I.
The share sale is expected to be for around Rs500 crore, two people aware of the development said on condition of anonymity.
Proceeds from the sale of new shares will be utilized to repay debt availed of by the company and its subsidiary and to meet general corporate expenses.
Established in 1998, Chennai-based Capricorn Food is a food processing company, manufacturing tropical fruit pulp/purees and concentrates, frozen fruits and vegetables, and fruit juices. Some of its customers include Coca-Cola India Pvt. Ltd, Varun Beverages Ltd, Manpasand Beverages Ltd, Cremica Food Industries Ltd and Hector Beverages Pvt. Ltd. According to the DRHP, in fiscal 2017, the company reported a revenue of Rs436.71 crore, up 8% compared to the previous year.
It reported profit rose 20% to Rs22.17 crore in 2016-17 from a year earlier.
The company has hired IIFL Holdings Ltd, ICICI Securities Ltd and IDFC Bank Ltd to manage the share sale.