Sresta Natural Bioproducts has filed preliminary documents for an initial public offering (IPO)

Sresta Natural Bioproducts, an organic food products business backed by VenturEast and Peepul Capital, has filed draft documents with the capital markets regulator SEBI to acquire money via a public offering. The first public offering would include a new issuance of Rs 50 crore in shares as well as an offer-for-sale of 70.3 lakh equity shares by investors such as Bio Fund and Peepul Capital Fund III LLC.

Ventureast Trustee Company Private Limited, Ventureast Life Fund III LLC, and Ventureast Trustee Company Private Limited would sell 47.8 lakh shares via the OFS method. The money raised from the new issuance will be used for working capital, debt reduction, and general business purposes.

24 Mantra is owned by Sresta Natural Bioproducts, which was founded in 2004. It has a market share of roughly 29 percent in the packaged organic food sector as per 2020 numbers. It sells a wide range of spices & condiments, groceries, packaged foods, edible oils, meal accompaniments, and drinks.

Its activities include organic food procurement, manufacturing, processing, marketing, and research and development. As of September 30, 2021, it is also one of the top Indian organic food brands in the United States, having a presence in 39 states spanning Indian ethnic and mainstream retailers, and a presence in 34 countries.

Its procurement network comprises 34,516 farmers, 1.9 lakh acres of certified organic land throughout 12 Indian states, 65 merchants and enterprises, and numerous aggregators.

Renuka Seelam, Rajashekar Reddy Seelam, and Balasubramanian Narayanan, who together hold 23.63 percent of the firm, and investors Ventureast Life Fund III LLC and Peepul Capital Fund III LLC own the balance.

Sresta Natural Bioproducts made a profit of Rs 10.39 crore in the fiscal year 2020-21, up from Rs 9.46 crore the previous year, and reported greater sales of Rs 312.06 crore, up from Rs 262.27 crore the previous year.

The profit for the six months ended September 2021 was Rs 1.13 crore, down from Rs 7.32 crore the previous year. Revenue grew to Rs 160 crore over the same time, up from Rs 155.61 crore the previous year. Axis Capital and JM Financial have been chosen as the issue’s book running lead managers.

Strengths:

a) Through our research and development efforts, we have become a market leader and one of the pioneers in India’s fast developing organic foods business, with a varied and innovation-driven product range.

b) An omnichannel distribution network fosters pan-India presence and market leadership.

c) One of the most well-known Indian organic food companies in the United States, with exports to 34 countries.

d) A large-scale, efficient sourcing and procurement network, which serves as an entrance barrier, is bolstered by exclusive procurement access to farmers in our network.

e) Asset-light strategy with strategically situated processing facilities and end-to-end quality monitoring of the integrated supply chain.

f) Professional management team and experienced promoters.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.