Keventer Agro Plans To Raise Rs 800-900 Crore Via IPO

The Kolkata based Keventer Agro is looking to raise anything between Rs 800 crore and Rs 900 crore through an IPO. The proposed issue will offer an exit route to the existing Singapore-based private equity investor Mandala Capital, which holds close to a 22% stake in the company. Sources said the fresh issue of shares would be in the range of Rs 325-375 crore. While about Rs 125 crore would be kept for capital expenditure, Rs 250 crore would be used to retire debt and build a capital base to expand the business in other parts of India. The IPO, valuing Keventer in the range of Rs 2,400-2,800 crore, is expected to hit the market during Diwali. The company plans to file a draft prospectus with SEBI in the next few days. Post-issue, promoters’ holding will dip by 10 percentage points to 70%. Owned by Jalan family, Keventer Agro is the largest milk producer in the private sector in the East and the Northeast and is also the franchisee for Parle’s Fruity, Appy and FIZZ. Now diversifying to frozen foods segment, it is also a large seller of bananas, especially in Bengal. It clocked a revenue of around Rs 1,000 crore in the last fiscal. The issue is the second this year from Bengal after iron and steel company Shyam Metalics.