Nekkanti Seafoods Ltd a Visakhapatnam based seafood processing and exporting company has raised $30 million which is approximately Rs 205 crores in a pre- IPO placement. Nekkanti Sea Foods Ltd is country’s best shippers of the processed and frozen puny products for over the past three decades of operations.
A kind of seafood exporter Nekkanti Seafoods Ltd has filed a draft red herring prospectus (DRHP) for its proposed initial public offering (IPO). The company is coming out with the initial public offers (IPOs) in order to raise their funds for business expansion plans or for the repayment of the loans along with supporting the working capital requirements.
Nekkanti is the 3rd seafood export company which has approached Sebi with the IPO papers within a month. Devi Seafood’s and Sandhya Marines had previously filed their respective papers with Sebi. Motilal Oswal, White Oak Capital, New Horizon Investments and Madhusudan Kela too participated in the round. Sandhya Marines is looking at raising around Rs. 500-600 crore through their initial share whereas Devi Seafoods have plans of raising Rs. 900 crore from its IPO.
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The company has also filed the draft papers with Sebi (Securities and Exchange Board of India)- a capital markets regulator in order to raise an estimated cost of Rs.750 crores through an initial share sale. Additionally, many firms are opting for the IPO route in order to give partial exit to their present shareholders counting private equity and venture capital firms.
Nekkanti filed a draft proposal in the initial public offering in the month of March. It invited proposals which involve the sale of fresh shares of 250 crores worth along with a secondary sale of 8 million shares by the promoters and the other shareholders. Also, the estimated size of the IPO is approximately 700-750 crores. After filling a draft proposal, Nekkanti received a regulatory clearance to float its IPO in June.
According to the merchant banking processes, along with Nekkanti Sea Foods, the others including Flamingo Travel Retail, HDFC Mutual Fund, Lodha Developers, Genius Consultants and Patel Infrastructure are expected in launching their respective Initial Public Offerings (IPO). All these companies together are targeting to raise more than Rs.140 billion.
Nekkanti plans to use the primary capital for its working capital requirements, according to its DRHP. In order to manage the initial share sale, Nekkanti has appointed Motilal Oswal investment bank.
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