Capricorn Food gets Sebi approval to launch IPO

So far this year, the total number of companies receiving Sebi approval has reached 13, including Capricorn Food Products. Photo: iStock

So far this year, the total number of companies receiving Sebi approval has reached 13, including Capricorn Food Products. Photo: iStock

New Delhi: Capricorn Food Products India Ltd, an integrated food processing company, has received approval from the Securities and Exchange Board of India (Sebi) to float an initial public offering (IPO).

The company had filed IPO papers with Sebi in February and obtained its “observations” on 12 April, latest update with the regulator showed. Sebi’s observation is necessary for any company planning to launch public issue like IPO, follow-on public offer and rights issue.

Going by the draft papers, Capricorn Food’s IPO comprises a fresh issue of equity shares worth Rs171 crore and an offer for sale of up to 76.43 lakh 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 general corporate purposes.

So far this year, the total number of companies receiving Sebi approval has reached 13, including Capricorn Food.

IIFL Holdings, ICICI Securities and IDFC Bank will manage the company’s public issue. The equity shares are proposed to be listed on the BSE and NSE.

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.

First Published: Tue, Apr 17 2018. 02 00 PM IST

Source: livemint