Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd has raised Rs 180 crore (around $28 million) from a bunch of domestic and foreign investors who have come as anchor investors ahead of its initial public offer which opened for subscription on June 24.
The fruit drinks maker has allotted 5.62 million equity shares at a share price of Rs 320, the upper end of the IPO price band, to 11 anchor investors, including Goldman Sachs, Birla Sun Life Insurance, ICICI Prudential MF, Morgan Stanley, Bharti AXA Life, SBI MF, UTI MF, BNP Paribas, Shinhan BNPP, Amundi Funds and Ashoka Pte.
Meanwhile, the company opened its IPO in a price band of Rs 290-320 per equity share. The issue got off to a slow start with just over 5 per cent of the issue covered at the end of the first day, almost all of it by retail investors.
The issue would close on June 26, 2015. Manpasand is the eighth company to launch an IPO this year.
The company received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) for around Rs 400 crore ($65 million) public float in April this year.
Of the total Rs 400 crore, it plans to use Rs 140 crore to set up the new facility in Vadodara and Rs 37 crore to modernise its existing unit in the city. It would also spend Rs 22 crore to set up a new corporate office in its home city and plans to use Rs 84 crore to repay debt. The rest is for general corporate purposes.
In particular, it would also mark one more portfolio firm of SAIF Partners going public. The venture and growth capital investment firm has been successful in taking a clutch of its portfolio firms to the public market. These include MakeMyTrip, Just Dial, Speciality Restaurants and Lovable Lingerie.
Manpasand Beverages raised Rs 45 crore three years ago from SAIF Partners and early last year pulled in Rs 45 crore more from the existing investor. In addition, it also raised Rs 26.25 crore from Aditya Birla PE's Sunrise Fund, as part of the pre-IPO round.
SAIF Partners currently owns around 29.8 per cent while Aditya Birla PE holds 3 per cent stake.
Manpasand Beverages manufactures mango juices and is known for its brand Mango Sip. It has a strong presence in tier II and rural markets in India and besides Mango Sip also sells products under the Manpasand ORS and Fruits Up brands.
It has three manufacturing facilities in Vadodara, Banaras and Dehradun. It was targeting to achieve revenue of Rs 500 crore in the last financial year against nearly Rs 300 crore in the year ended March 31, 2014, and over Rs 1,000 crore by 2016. Majority of its revenue comes from small towns and rural markets.