Sresta Natural Bioproducts Files Draft Papers With SEBI

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. Peepul Capital Fund III LLC will offload 22.50 lakh equity shares, while Ventureast Life Fund III LLC, Ventureast Trustee Company Private Limited (acting on behalf of the biotechnology venture fund), and Ventureast Trustee Company Private Limited together will sell 47.8 lakh shares through the OFS route. JM Financial and Axis Capital are the book running lead managers to the issue. The company will utilise fresh issue money for its working capital requirements, repayment of debts, and general corporate purposes.

Incorporated in 2004, Sresta Natural Bioproducts owns 24 Mantra. It is the largest brand in the packaged organic food segment with a market share of approximately 29 percent. It offers all types of grocery staples, spices and condiments, edible oils, packaged food, beverages, and meal accompaniments. The company is engaged in procuring, processing, manufacturing, marketing and research and development of organic food products. The leading Indian organic food brands in the US with presence in 39 states across Indian ethnic stores and mainstream stores and has presence in 34 countries as of September 30, 2021. Its procurement network includes 34,516 farmers, 1.9 lakh acres of certified organic land across 12 states in India, 65 vendors and companies, and various aggregators. The company is promoted by Rajashekar Reddy Seelam, Renuka Seelam, and Balasubramanian Narayanan who together own 23.63 percent in the company.

It recorded a profit of Rs 10.39 crore for the financial year 2020-21, up from Rs 9.46 crore in the previous year, and reported higher revenue at Rs 312.06 crore, rising from Rs 262.27 crore in the same period. Profit for six months to September 2021 fell to Rs 1.13 crore from Rs 7.32 crore a year ago. Revenue during the same period increased to Rs 160 crore, from Rs 155.61 crore a year back.