Sresta Natural Bioproducts Limited, which owns packaged organic food segment, ’24 Mantra’, has filed draft red herring prospectus (DRHP) with capital markets regulator, SEBI to raise funds through an initial public offering (IPO). According to market sources, the IPO size is expected to be around Rs 500 crore.
The Initial Public Offering of the Hyderabad-based organic food company comprises fresh issue of equity shares aggregating up to Rs 50 crore and an offer sale of up to 70,30,962 equity shares by the selling shareholders.
It proposes to utilise the net proceeds from the fresh issue towards funding the working capital requirements of the Company; repayment or pre-payment in full or part, of certain outstanding unsecured / secured borrowings availed by the Company; and general corporate purposes.
Incorporated in 2004 by one of its promoters and MD, Rajashekar Reddy Seelam, Sresta Natural Bioproducts is engaged in the business of procuring, processing, manufacturing, marketing and research and development of organic food products.
As of September 30, 2021, company has a presence in a total of 34 countries. Its brand, ‘24 Mantra’, is the largest brand in the packaged organic food segment (excluding organic packaged food market beverage and packaged tea and coffee) with approximately 29 percent market share in Fiscal 2020 as per a Technopak Report.
According to the Technopak report, the company has the highest acreage under organic cultivation among the B2C organic food companies in India, and has an extensive sourcing relationship with farmers across 12 states in India. As of September 30, 2021, its procurement network included 34,516 farmers, 190,610 acres (includes land under organic conversion) of certified organic land across 12 states in India, 65 vendors/ companies (including certain organic certified vendors/ companies) and various aggregators.
Sresta is also one of the leading Indian organic food brands in the USA with presence in 39 states across Indian Ethnic Stores and Mainstream Stores as per the Technopak report.
The Book Running Lead Managers to the offer are JM Financial Limited and Axis Capital Limited.
The equity shares are proposed to be listed on BSE and NSE.
