Keventer Agro One of India’s Largest FMCG Brands Gears Up for an IPO

One of India’s leading FMCG brands with a product portfolio of over 90 SKUs, Keventer Agro Ltd. is an Indian agro-processing company headquartered in Kolkata, West Bengal.

On August 8, 2021, it filed its DRHP with SEBI, and it is a subsidiary of the Keventer Group. The corporation has a dominant market share in the country’s Eastern and North Eastern parts. The company awaits a suitable occasion and supportive markets before announcing the IPO date, although the exact dates of the offering are still pending.

Keventer Agro Ltd. processes and exports various agricultural products, including rice, wheat, maize, pulses, spices, and oilseeds. The company has a state-of-the-art processing facility in Kolkata and a strong distribution network in India and abroad. 

Keventer Agro Ltd. is committed to providing quality products and services to its customers, and it has a team of experienced professionals who work tirelessly to meet the customers’ needs.

A pre-IPO placement is expected to bring in Rs. 50 crore for the company, lowering the amount of the offer. The book-running leading managers for the offer are JM Financial Ltd, Axis Capital Ltd, and ICICI Securities Ltd. Let’s learn a few things before you decide to invest in this company. 

7 Important Things to Know About Keventer Agro Ltd IPO

  • Keventer Agro Ltd. has registered with SEBI for an initial public offering (IPO) of Rs. 800 crore, which includes a new issue of Rs. 350 crore and an offer for the sale of OFS worth Rs. 450 crore. In addition, 15.35 million mandatorily convertible preference shares (CCPS) will be transformed into 9.15 million firm shares as part of the IPO.
  • Let’s first examine the OFS part of the Rs. 800 crore issue. 1,07,67,664 shares worth about Rs. 450 crores would be sold in the OFS. Only when the IPO price band is revealed will the Keventer Agro IPO’s ultimate valuation be known. Mandala of Singapore, which owns 6.16% of Keventer, will be among the main early investors to leave Keventer Agro.
  • Keventer Agro Ltd is set to use Rs. 155 crores of the new issue proceeds for debt repayment or prepayment, while Rs. 111 crore of the new issue proceeds will be used for capital expenditures. Fast-moving consumer goods (FMCG) comprise most of the company’s business, and its shares carry a face value of Rs. 5 each.
  • The business is considering a pre-IPO placing of Rs. 50 crore in addition to the IPO, resulting in a smaller IPO. A combined effect of the fresh issuance and the OFS will likely cause the promoters’ current 80% ownership in the company—which they now own—to fall to 70% after the IPO.
  • The eastern states of West Bengal, Jharkhand, Odisha and Bihar are where Keventers products are mostly distributed. Assam, Sikkim, Arunachal Pradesh, Nagaland, Tripura and Meghalaya are some of the other North Eastern states where it has a significant franchise. Also, it is currently spreading to other regions of India.
  • In the markets for dairy products, packaged goods, and fresh foods in East India, Keventer Agro stands as a significant player. Almost 90 SKUs are available here. Frooti, Appy, Appy Fizz, and Bailey are just a few well-known brands Parle Agro has licensed. Moreover, the firm sells milkshakes, frozen goods, UHT milk, and bananas under the Keventer brand.
  • As we discussed before, Axis Capital, ICICI Securities, and JM Financial will manage Keventer Agro Ltd’s first public offering (IPO). They will serve as the issue’s book-running lead managers or BRLMs.

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Conclusion

Keventer Agro Ltd. is a significant player in India’s North East and East, providing various products to many customers. They provide a multi-channel distribution network that maximises distribution effectiveness by utilising technology. Among its retailers are supermarkets like Spencer’s Retail Ltd., Big Bazaar, and Foodhall.

Further important information about the public offering will be made public once the business submits the final Red Herring Prospectus. Also, the firm still needs to release information on the IPO.

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