Shrimp exporter Devi Seafoods, chemical maker Fine Organics get IPO nod
Photo Credit: Shah Junaid/VCCircle

Visakhapatnam-headquartered shrimp exporter Devi Seafoods Ltd and Mumbai-based chemical maker Fine Organics Ltd have got regulatory approvals to float initial public offerings (IPOs).

This year so far, 18 companies have received regulatory nods for IPOs.

Devi Seafoods had filed its IPO proposal on 5 March. Its planned IPO, size pegged at Rs 900 crore, involves share sale by the promoter and the promoter group. The clearance comes at a time when Indian seafood exporters have benefitted from a rise in demand from Europe, North America and East Asian nations such as China and Japan.

Apart from Devi Seafoods, four more seafood exporters are looking to go public: Falcon Marine Exports Ltd, Sandhya Marines Ltd, Nekkanti Sea Foods Ltd, and Devi Fisheries Ltd.

The rush among Indian seafood firms to go public follows the success of peer Apex Frozen Foods Ltd, whose shares gained 20% on debut in September 2017. Shares of Apex have more than tripled since.

In going public, Devi Seafoods will join listed peers such as Apex Frozen Foods Ltd, Avanti Feeds Ltd, The Waterbase Ltd, and Zeal Aqua Ltd.

For Devi Seafoods, merchant bankers Axis Capital, ICICI Securities, and Kotak Mahindra Capital Co. will manage the IPO.

Founded in 1992 by P Brahmanandam, Devi Seafoods is among the largest seafood exporters in India. It mainly ships shrimp to foreign destinations such as North America and South East Asia. Its major customers in the US include food service distributors, restaurant chains, retailers and distributors, as well as warehouse chains.

India ranks first in shrimp exports, and is the second-largest fish market worldwide, going by Seafood Exporters Association of India (SEAI). Indian aquaculture production is estimated to touch a record one million tonnes by 2020, SEAI forecast shows.

Fine Organics

Fine Organics had filed its IPO proposal on 8 February.

The public issue, estimated at Rs 500 crore, involves share sale by promoters and other shareholders. It will consist of 7.66 million shares, representing 25% of the post-issue equity capital.

Last October, VCCircle was the first to report that Fine Organics was planning to list itself on the stock exchanges. Later, it appointed merchant bankers for the IPO.

Fine Organics, which makes chemical ingredients for the petrochemicals and food industries, is following in the footsteps of about four dozen listed peers, including Blackstone-backed SH Kelkar & Co Ltd, BASF India and Shree Pushkar Chemicals & Fertilisers.

In January, chemicals maker Galaxy Surfactants Ltd had made a positive stock market debut through an IPO that was subscribed 20 times.

For Fine Organics, merchant bankers JM Financial and Edelweiss Financial Services will manage the IPO.

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