The company aims to raise around Rs 152 crore through the issue that will close on August 24.
Moneycontrol News
Aquaculture products exporter Apex Frozen Foods has opened its initial public offering for subscription on Tuesday, August 22.
The company aims to raise around Rs 152 crore through the issue that will close on August 24.
On Monday, the company raised Rs 43 crore from anchor investors – Reliance Capital Trustee Company, HSBC Midcap Equity Fund, HSBC India Opportunities Fund and ITPL –Invesco India Contra Fund.
Its equity shares will be listed on NSE and BSE. Karvy Investor Services Limited is the book running lead manager to the issue.
Here are 10 things you should know about Apex Frozen before subscribing the issue:-
Also read – Subscribe to Apex Frozen Foods: Nirmal Bang
About the company
Apex is one of the integrated producer and exporter of shelf stable quality aquaculture products. It supplies ready-to-cook products to food companies, retail chains, restaurants, club stores and distributors spread across the developed markets of USA, UK and various European countries.
Company produces two kinds of shrimps namely the Whiteleg shrimp (Litopenaeus vannamei) and the Black Tiger Shrimp (Penaeus monodon).
The company sold variants of processed Vannamei shrimp (White shrimp) under the brands owned by customers and also through its own brands namely Bay fresh, Bay Harvest and BayPremium.
Its integrated operations span across hatchery and farming on 1,337.69 acres of land. Its processing facility is located at Kakinada, Andhra Pradesh with a capacity to process approximately over 9,240 MTPA of finished products and an additional non-exclusive pre-processing and processing arrangement at a facility owned by Royale Marine Impex Private Limited located at Bapatla, Andhra Pradesh, for a capacity to process around 3,000 MTPA of finished products.
The processing facilities are supplemented by cold storage facilities located at Kakinada and Bapatla. Along with this, it has its own fleet of vehicles with freezing capabilities.
About the Issue
Apex launched the public issue of up to 87 lakh equity shares which will be offered through a book-building route.
The issue comprises of fresh issue of 72.5 lakh shares and an offer for sale of 14.5 lakh shares by promoters Karuturi Satyanarayana Murthy (7.25 lakh shares) and Karuturi Padmavathi (7.25 lakh shares).
The issue also includes a reservation of up to 4 lakh equity shares for subscription by eligible employees. The issue would constitute up to 27.84 percent on post issue paid-up capital.
The company targets to raise Rs 152.25-148.77 crore at a price-band of Rs 171–175 per share.
Objects of the Issue
Apex proposes to utilise the net proceeds (Rs 90.15 crore) from the fresh issue for setting up a new shrimp processing unit with a proposed capacity of 20,000 MTPA at East Godavari District, Andhra Pradesh and general corporate purposes.
It will not receive any proceeds from the offer…