Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd has received capital markets regulator Securities and Exchange Board of India’s (SEBI) approval for its proposed initial public offer (IPO).
Manpasand Beverages had filed its draft red herring prospectus with SEBI for around Rs 400 crore ($65 million) public float in November 2014.
The capital markets watchdog issued its final observations in the draft offer document on April 23, which is necessary for any company to float the IPO.
Kotak Mahindra Capital, India Infoline and ICICI Securities are managing the issue.
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 another of SAIF Partners’ firm
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.
(Edited by Joby Puthuparampil Johnson)