Apex Frozen Foods, the integrated producer and exporter of shelf stable quality aquaculture products, hit the market today with its initial public offer (IPO) to raise up to Rs 152 crore for expansion.
The IPO of up to 87,00,000 equity shares of face value of Rs 10 each is being offered through a book-building route at a price band of Rs 171-175 per share.
At the upper end, the shares can fetch up to Rs 152.25 crore while at the lower limit, the company will raise at least Rs 148.77 crore.
It comprises fresh issue of 72,50,000 shares and an offer for sale of 14,50,000 shares by promoters.
The shares will be listed on both NSE and BSE.
On Monday, the firm raised over Rs 43 crore from anchor investors. The company said it has allotted 24.90 lakh equity shares to three anchor investors at Rs 175 per piece, totalling Rs 43.57 crore. The anchor investors are Reliance Capital Trustee Company Ltd, HSBC Midcap Equity Fund, HSBC India Opportunities Fund and ITPL --Invesco India Contra Fund.
The company's total revenues rose to Rs 709.68 crore in the 2016-17 fiscal from Rs 255.48 crore in 2012-13.
The Andhra Pradesh-based firm will use fresh issue of shares towards the setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in the state and for general corporate purposes.
The firm which commenced operations in 1995 set up its own shrimp processing facility in 2004.
Its existing processing facility is located at Kakinada, Andhra Pradesh with a capacity of over 9,240 tonnes per annum of finished products. It has a sizeable farming operation spread across 1,337.69 acres land.
Proceeds from the issue would be utilised towards setting up a new shrimp processing unit with a capacity of 20,000 tonnes per annum in Andhra Pradesh and for general corporate purposes.
The firm supplies its ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors spread across the developed markets of USA, UK and various European countries.
Its output majorly comprises variants of processed Vannamei shrimp (White shrimp) and is sold under the brands owned by the firm's customers and also through its brands namely Bay fresh, Bay Harvest and BayPremium.
The company strategically focuses on the market of USA, which is the largest importer of aquaculture products in the world. (Source- Crisil Report).