Capricorn Food Products India Ltd, an integrated food processing company, has received the nod from the Securities and Exchange Board of India's (SEBI) to float an initial public offering (IPO).
The Chennai-based company had filed IPO papers with the market regulator in February and received "observations" on April 12.
Capricorn Food's primary issue comprises a fresh issue of equity shares worth Rs 171 crore and an offer for sale of up to 76.43 lakh scrips by the existing shareholders.
The company aims to utilize IPO proceeds toward repayment of debts of the company, investments in its subsidiary-Gonglu, and general corporate purposes.
IIFL Holdings, ICICI Securities, and IDFC Bank will manage the Capricorn Food's public issue. Link Intime India Private Limited is the registrar to the offer.
The equity shares of Capricorn Food Products India Ltd are proposed to be listed on the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange).
Established in 1998, the company deals with both overseas and domestic operations. It manufactures tropical fruit pulp/purees and concentrates, bulk frozen, IQF fruits & vegetables and fruit juices as per customer requirements. It has clients across North America, Europe, Asia-Pacific, Africa and the Middle East.
It is not common for food processing companies to go public, but a couple of other companies in the sector, including Nekkanti Sea Foods Ltd, Devi Seafoods Ltd, and Sandhya Marines Ltd had sought to launch an IPO recently.
It is expected that the current financial year will witness more IPOs. Primary issues of companies, including Indian Railway Catering and Tourism Corporation (IRCTC), IRCON International, Rail Vikas Nigam, Mazagon Dock Shipbuilders and Garden Reach Shipbuilders, are expected in the coming days.