Can you tell me about the proposed IPO of Sresta Bioproducts?
Answer
Answer
The latest company to file for its proposed IPO is Sresta Natural Bioproducts. This company is based out of Hyderabad in South India. Sresta Natural Bioproducts has filed its draft red herring prospectus (DRHP) with SEBI for its proposed IPO. The indicative size of the IPO will be around Rs.500 crore as per the DRHP filing done by the company.
The IPO of Sresta Natural Bioproducts will be a combination of fresh issue of shares and an offer for sale by the existing shareholders, including early investors. While the fresh offer for sale will be for funding its loan repayment / prepayment, the OFS portion will not impact the outstanding equity, although it will result in change in ownership.
The total IPO of Sresta will comprise of a fresh issue of Rs.50 crore and an offer for sale of Rs.450 crore making the total size of the issue Rs.500 crore. The offer for sale will entail sale of 70,30,852 shares by the promoters and the early shareholders of the company. The funds participating in the OFS include early investors in the company like Peepul Capital Fund, Ventureast Life Fund and Ventureast Trustee company.
Sresta Natural Bioproducts is based out of Hyderabad and owns and operates the extremely popular 24 Mantra Organic brand. This brand is extremely popular in and around the region. Sresta sells a variety of packaged food products under this brand including cooking ingredients, dry fruits, organic tea and many more such products. Natural ingredients have acquired a lot of attraction quotient after COVID-19.
The issue will be predominantly an institutional issue targeting 75% of the issue size at qualified institutional buyers (QIBs). The regular 15% will be reserved for the HNI or non-institutional investors while the balance 10% will be reserved for allocation to retail investors up to the Rs.1 lakh limit. The book running lead manager (BRLMs) for the issue will be Axis Capital and JM Financial. KFintech Technologies will be the registrar to the issue.