The company had filed IPO papers with Securities and Exchange Board of India (Sebi) in February and obtained its "observations" on April 12, latest update with the regulator showed.
Sebi's observation is necessary for any company planning to launch public issue like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
With this, the total number of companies receiving approval from the capital markets regulator has reached 13 so far this year.
Going by the draft papers, Capricorn Food's IPO comprises fresh issuance of equity shares worth Rs 1.71 billion and an offer for sale of up to 7.64 million scrips by the existing shareholders.
Proceeds of the issue will be utilised towards repayment of certain indebtedness of the company; investment in its subsidiary -- Gonglu -- for repayment of certain borrowings availed by it; and and general corporate purposes.
Established in 1998, Capricorn Food is a food processing company with both export and domestic operations. It serves clients across North America, Europe, Asia-Pacific, Africa and the Middle East.