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Gemini Edibles & Fats files DRHP to raise 2500 crore via IPO

Gemini Edibles' revenue from operations stood at Rs7,765.96 crore in FY21 versus Rs6,500.25 crore a year ago. Net profit during the period was at Rs570.77 crore.Premium
Gemini Edibles' revenue from operations stood at Rs7,765.96 crore in FY21 versus Rs6,500.25 crore a year ago. Net profit during the period was at Rs570.77 crore.

  • Gemini Edibles has three port-based manufacturing facilities on the eastern coast of India, with two in Kakinada and one in Krishnapatnam. As of June, it had a refining capacity of 2615 mt per day while packaging capacity stood at 3988 mt per day

MUMBAI: Gemini Edibles & Fats India Ltd has filed a draft red herring prospectus (DRHP) with the Securities Exchange Board of India (Sebi) to raise Rs2,500 crore through an initial public offering (IPO).

The IPO consists of a pure offer for sale of equity shares worth Rs25 crore by Pradeep Kumar Chowdhry, up to 225 crore by Alka Chowdhry, up to 750 crore by Golden Agri International Enterprises PTE Ltd, Rs1,250 crore by Black Riverfood 2 Pte and Rs250 crore by Investment and Commercial Enterprise Pte.

As of March, Golden Agri International Enterprises held 56.27% stake in the company while Alka Chowdhry had 11.56% stake. Black Riverfood, Investment and Commercial Enterprises and Pradeep Chowdhry had 25%, 6.6% and 0.57% stake in the firm, respectively.

Axis Capital, Credit Suisse Securities India, Kotak Mahindra Capital and Nomura Financial Advisory and Securities India are the book running managers to the issue.

The company is market leader in the sunflower oil category with its ‘Freedom’ brand, in Telangana, Andhra Pradesh, and Odisha, and holds the third largest market share in Karnataka. Its range of edible oils and fats are sold to customers under three verticals - branded retail consumer, industrial consumer and bulk merchandising.

The branded retail consumer products are marketed under its own brand, ‘Freedom’, for premium oils such as sunflower oil, rice bran oil, mustard oil and groundnut oil, and under ‘First Klass’ for palm oils.

It has three port-based manufacturing facilities on the eastern coast of India, with two in Kakinada and one in Krishnapatnam. As of June, it had a refining capacity of 2615 mt per day while packaging capacity stood at 3988 mt per day.

Its branded retail consumer products are sold in approximately 640 towns in Andhra Pradesh, Karnataka, Odisha and Telangana through a network of over 1,100 distributors and traders, serviced by 130 sales personnel and over 30 depots. Its ‘Freedom’ brand of sunflower oil was sold to more than 260,000 retail outlets across these states as of June.

The company said during the lockdown, demand for its products did not see any material impact. Household demand for cooking oils grew while that from household consumers and hotels restaurants, caterers fell.

For fiscal 2021, its revenue from operations stood at Rs7,765.96 crore versus Rs6,500.25 crore a year ago. Net profit was at Rs570.77 crore against Rs185.85 crore last year.

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