Gemini Edibles files for Rs 2,500-cr IPO

Hyderabad: City-based Gemini Edibles and Fats India Ltd (GEFIL) has filed draft red herring prospectus (DRHP) for an IPO worth Rs 2,500 crore with the market regulator Sebi. The issue is a completely an offer for sale (OFS) by existing shareholders and the promoters, and the company will not receive any funds from the net proceeds of the initial public offering (IPO).

Black Riverfood 2 Pte will offload equity shares worth Rs 1,250 crore, Golden Agri International Enterprises Pte Ltd will sell shares to the tune of Rs 750 crore and Investment and Commercial Enterprise Pte will divest shares worth Rs 250 crore. In addition, shares up to Rs 225 crore and Rs 25 crore will be offloaded by Alka Chowdhry and Pradeep Kumar Chowdhry respectively.

Golden Agri International Enterprises holds 56.27 per cent stake in GEFIL, Black River Food 25 per cent, Alka Chowdhry 11.56 per cent, Investment and Commercial Enterprises holds 6.6 per cent and Pradeep Chowdhry holds 0.57 per cent, according to the DRHP. The investment bankers appointed to this public issue are Axis Capital Ltd, Credit Suisse Securities (India) Pvt Ltd, Kotak Mahindra Capital Company Ltd and Nomura Financial Advisory and Securities (India) Pvt Ltd. GEFIL, the owners of Freedom brand oil, commenced its business in 2010 and holds the third largest market share in Karnataka. It operates across the edible oil and fats value chain from importing crude edible oil to processing, packaging and distribution of its products.

It has three verticals – branded retail consumer- sunflower oil, rice bran oil, mustard oil, palm kernel oil, palmolein oil; industrial consumer – high stability frying oils, palm oils, cocoa butter substitutes and interesterified vegetable fats; and bulk merchandising – palmolein, sunflower and soyabean oils. During the last two fiscal years, its revenue from operations has seen a growth rate of 19.6 per cent and gross profit margin has almost doubled. It had a network of over 30 depots, 1,100 distributors and wholesalers who have retail reach to approximately 640 towns in Telangana, AP, Odisha and Karnataka.