Initial Public Offering or IPO is quickly becoming one of the most popular choices for Indians to start their stock investment journey. Catering to the demand of retail investors, Keventer Agro Limited will launch its IPO soon.
The company has already filed its Draft Red Herring Prospectus with SEBI and received a positive response from the latter. The company is expected to execute its plan to launch its IPO sometime this year.
The company has yet to announce the tentative dates, price band and other details of the IPO. Here are some important details about Keventer Agro Limited.
Keep reading till the end to know all about the company and its upcoming IPO to make an informed decision.
Also Read: How To Apply For An IPO?
Table of Content
About the Company
Headquartered in Kolkata, Keventer Agro Limited is a leading company in the Fast Moving Consumer Goods (FMCG) sector in India. It holds a prominent market position in selling fresh dairy and food products.
The vision behind this 125-year-old brand was Edward Keventer. He was a pioneer in revolutionising the agriculture and dairy industry. In Kolkata, Keventer Agro Limited was established in 1986. Mr. Mahendra Kumar Jalan is the chairman of Keventer.
The product offerings of this company are spread across various brands and include packaged frozen foods, packaged beverages, ice cream, domestic bananas, private dairy, and UHT milk. Its dairy and fresh product segment includes processing, marketing and distribution of pouch milk, lassi, milkshakes and other dairy products under the brand names ‘Metro’ and ‘Keventer’.
According to a report by Technopak, approximately 60%-65% of East and north-eastern India’s population make up the core consumers of Keventer’s products. In the UHT milk category, Keventer ranks as the second largest distributor of UHT Milk in the eastern and northeastern regions of India.
Metro, under Keventer, is the second-largest ice cream brand in Kolkata. Packaged foods and beverage brands under Keventer include Bailey, Keventer Frozen, Appy, Frooti, Smoodh, B Fizz and Appy Fizz.
Strengths of the Company
Here are some of the key strengths of Keventer Agro Limited which contribute to its growth:
- It is one of the leading brands in East and North East India with a diverse range of products. These cater to the customer base’s varied needs and requirements.
- The company has excellent multi-channel distributors across India in its network. You’ll find Keventer products from retailers and supermarkets like Big Bazaar, Spencers and hypermarkets like Ratnadeep Retail Private Limited.
- It has a remarkable brand visibility among the product segments which is one of the key reasons for this brand’s success.
- Keventer has an amazing track record in introducing new products along with successful marketing tactics via its well-established distribution platform.
- The production units of Keventer products are strategically located in the vicinity of its target markets. This results in low logistics costs, availability of fresh products and growth in turnover.
- The company runs under the leadership of an experienced management team.
- Keventer takes constant initiative to focus and work on the cost efficiency of its products while maintaining high-quality standards.
Risks Involved
Here are some of the financial and operational risk factors associated with Keventer Agro Limited:
- Price fluctuations, interruptions in operations and inadequacy of raw materials on a seasonal basis can cause hiccups in the smooth production and cash flow of Keventer.
- The manufacturing units and flagship facilities are located in Barasat, Midnapore, Durgapur, Malda and Siliguri in West Bengal. Disruption, closure or slowdown of operation owing to the unavailability of resources like water, coal or electricity in any of these units can adversely affect Keventer’s business.
- Any instance of actual or alleged corruption of its products’ quality could result in the company facing legal issues. This can damage the company’s brand reputation and negatively impact its business prospects.
Also Read: Risk of investing in IPO
Why Should You Invest in the Keventer Agro Limited IPO?
Following are some reasons why you may consider investing in Keventer Agro IPO.
- It is one of the primary players in the FMCG market in Eastern and North-Eastern India.
- Keventer has a remarkable brand visibility and marketing strategy.
- It also has an excellent track record of introducing new products in the market and catering to the demands of its respective target groups.
- The company plans to use the money raised by issuing an IPO to fund any of its capital expenditure requirements and repay or prepay previous debts.
Financials
Take a look at the important financial details of Keventer Agro Limited IPO:
| Particulars | For the Financial Year Ending (in Rs. million) | ||
| March 31, 2021 | March 31, 2020 | March 31, 2019 | |
| Total Assets | 7,229.15 | 7,291.14 | 6,696.52 |
| Total Liabilities | 6,214. 47 | 5,506.00 | 4,942.40 |
| Total Expenses | 9,148.30 | 9,565.74 | 8,692.82 |
| Total Revenue | 8,360. 25 | 9,582.54 | 8,844.12 |
| Profit After Tax | (761.76) | 34.19 | (1.15) |
| EBITDA | (208.55) | 522.68 | 570.43 |
How to Invest in Keventer Agro Limited IPO?
Follow these steps to subscribe to Keventer Agro Limited IPO:
Step 1: Visit the Bajaj Trading Platform and sign in with your credentials.
Step 2: Next, you must choose IPO from the Menu, click on Open IPOs and then select Apply.
Step 3: Enter necessary details like the number of shares you are purchasing and your UPI ID.
Step 4: You are done with booking your Keventer Agro Limited IPO shares.
Read More: Benefits of Investing in IPO
Summary
Keventer Agro Limited IPO is planning to use the net proceeds that it earns by issuing an IPO to partially or completely repay its debts. It also plans to use this amount to fund corporate expenditure that involves initiatives for business expansion.
This blog has hopefully given a comprehensive overview of Keventer Agro Limited and its upcoming IPO. Thoroughly browsing this blog will help you make an informed decision whether or not you must invest here. As an investor, if you find the company’s goal aligns with your investment plans then this IPO is good to go for you. However, if you are a new investor, consider seeking assistance from financial experts and seasoned investors to make a wise decision.
Keventer Agro Limited IPO FAQ
Keventer Agro Limited along with its underwriters have decided the face value of its IPO shares to be Rs. 5 per equity share.
JM Financial, ICICI Securities and Axis Capital are the Book Running Lead Managers who will accompany Keventer throughout its IPO issuance.
The IPO will be listed in both BSE and NSE. The company has not announced this yet. Therefore, consider keeping an eye out for Keventer Agro Limited IPO updates.
The promoters of Keventer Agro Limited are planning to sell approximately 10,767,664 equity shares as an Offer for Sale.
Keventer sells milk and dairy products like paneer, ice cream, lassi, curd and milkshakes under the brand name Keventer and Metro. It also sells domestic bananas, and packaged veg and non-veg snacks among other prominent food items.
Keventer Agro Limited is planning to launch equity shares worth approximately Rs. 3500 million. However, the company has yet to declare the number of shares it will offer as a fresh issue.
According to reports, Keventer Agro Limited served approximately 1,60,000 to 1,70,000 customers till March 2021.
