Manpasand Beverages' Rs 400-cr IPO gets Sebi green light

Fruit drinks maker Manpasand Beverages has received market regulator Sebi's approval for raising Rs 400 crore through an initial public offer (IPO).
The company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in November last year for the proposed offer.
Sebi issued its final observations in the draft offer document on April 23, which is necessary for any company to float the IPO.
Prior to that, Sebi had sought clarifications from Manpasand Beverages' lead manager, Kotak Mahindra Capital Company, regarding the proposed IPO.
Manpasand Beverages, the maker of fruit drink 'Mango Sip' as well as apple and litchi juices, has three manufacturing facilities in Vadodara, Varanasi and Dehradun.

The funds raised from the issue would be utilised for setting up of a manufacturing facility in Haryana/Punjab and a corporate office at Vadodara, modernisation of existing facilities in Vadodara and Varanasi, repayment of loans and other general corporate purposes.

The company is targeting revenues worth Rs 300 crore by the end of this year and over Rs 1,000 crore by 2016.
Indian food and beverages market in the FMCG sector is pegged at almost Rs 1.5 lakh crore.
Before Manpasand Beverages, as many as eight companies, including Sadbhav Infrastructure Projects and UFO Moviez India, had received Sebi approval to launch their IPOs to fund business expansion and meet working capital requirements.