Sresta Natural Bioproducts aims to raise Rs 500 cr via IPO, seeks Sebi nod

Organic food company Sresta Natural Bioproducts Ltd has filed preliminary documents with capital markets regulator Sebi to raise Rs 500 crore through an initial share-sale.

The initial public offering (IPO) comprises fresh issue of equity shares aggregating up to Rs 50 crore and an offer-for-sale of up to 70,30,962 equity shares by the selling shareholders, according to the draft red herring prospectus (DRHP).

The Hyderabad-based Sresta Natural Bioproducts owns the largest brand in the packaged organic food segment '24 Mantra'.

According to market sources, the IPO size is expected to be around Rs 500 crore.

The company proposes to utilise the net proceeds from the fresh issue towards funding the working capital requirements, repayment of debt 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 2021, the company has a presence in 34 countries.

JM Financial and Axis Capital are the book running lead managers to the issue. The equity shares of the company are proposed to be listed on BSE and NSE.