Jammu based food processing company enter the capital market with an initial public offer (IPO) of over 64 lakhs equity shares – the first private sector company of the state, and overall the second after JK Bank, to list at stock exchanges.
The equity shares are proposed to be listed on the SME platform of National Stock Exchange of India Limited (NSE).
Sarveshwar Foods Ltd, engaged in the business of processing and marketing of branded and un-branded basmati and non-basmati rice in the domestic and international markets now plans to enter the capital market with an initial public offer of 64, 67,200 equity shares of face value `10 each for cash at a Price Band of `83/- to `85/- per equity share.
The funds raised through the public issue are proposed to be utilized to Part Finance the Working capital requirement, Invest in Subsidiary- Himalayan Bio Organic Foods Private Limited, meetIssue Expenses and for general corporate purposes.
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This was announced by promoter of the company, Rohit Gupta, local official of National Stock Exchange (NSE) Mumbai, during investors meet recently.
As reported in online reports, “Gupta told investors that the funds raised through the public issue are proposed to be utilized for part finance of working capital requirement, investment in subsidiary, meeting the expenses of the offer and general corporate purposes”. He also said that 1/3 of IPO funds will be towards development of organic trade and farming and 2/3 to offload company debts.
The Issue is being made through the Book Built Process wherein 50% of the Net Issue shall be available for allocation on a proportionate basis to Retail Investors, and balance 50% of the Net Issue shall be available for allocation on a proportionate basis to Non-Retail Investors. “The equity shares are proposed to be listed on the SME Platform of National Stock Exchange of India Limited (NSE)”, he added.
Sarveshwar Foods Limited, established in 2004 and headquartered in Gummat in Jammu & Kashmir, is primarily engaged in the business of processing and marketing of various types of rice in the domestic and international markets. Company currently operates through two rice milling and processing facilities i.e. at Seora (Unit I) and SIDCO (Unit II).
The Company not only deals with both branded and non-branded rice being grown using both the conventional as well as organic method but also deals in other organic products such as dry fruits, pulses, lentil, flours, porridge, spices, flax seeds, etc. The Company is ISO 22000:2005 certified and also holds BRC & HACCP certifications, valid APEDA registration, and USFDA & GFSI Certification from Costco Wholesale.