Keventer Agro Ltd IPO

Last Updated: 01 September 2022 11:27 AM by 5Paisa

IPO Synopsis
Kolkata based Keventer Agro Ltd filed its DRHP with SEBI on 8th August, 2021. The issue consists of a fresh issue worth Rs.350 crore and an offer for sale of up to 10,767,664 equity shares by Mandala Swede SPV, the organization that holds a 6.61% stake in the company. The OFS includes 15.35 million compulsory convertible preference share. This will be converted to a maximum of 9.15 million shares.
It is expected that the company will raise Rs.50 crore through a pre-IPO placement which will in turn decrease the issue size. The book running lead managers to the issue are ICICI Securities Ltd, Axis Capital Ltd and JM Financial Ltd. 

Objectives of the issue
1.    Rs.155 crore is to be kept aside for the repayment and prepayment of debt availed by the company
2.    Rs.110.76 crore is going to be used to fund the capital expenditure requirement of the company
 

About the company
Keventer Agro is a Kolkata based FMCG company that is focused on packaged, dairy and fresh food products.
As of 31 March, 2021, the company had a sales force of 570 employees and 3,126 distributors. They also cater to 1,60,000-1,70,000 retail touch points. The products of the company are distributed in the states of Bihar, Jharkhand, Orissa, West Bengal, Assam, Mizoram, Nagaland and Sikkim. They have very recently started distributing their products in the states of Madhya Pradesh, Himachal Pradesh, Punjab, Rajasthan and UP. The company has a presence in the urban, semi-urban and rural areas and is seeking to cover more of the rural area. The company is one of the fastest growing companies in the North East and Eastern part of the country. The company grew at a CAGR of 18.46% over the last 10 years. The traditional sales of the company account for a whopping 92.5% of the sales and only 7.5% of the sales are threw the modern channels. 
 

Financials: