Indian biscuit and bakery products maker Anmol Industries has filed draft papers for an initial public offering of up to 18 billion rupees ($187.87 million), as the company looks to tap renewed activity in the country’s primary capital market.
The proposed IPO will be entirely an offer for sale by the Baijnath Choudhary & Family Trust, which holds roughly 84% of Anmol Industries and is the company’s largest shareholder. Anmol itself will not issue new shares as part of the offering and therefore will not receive any proceeds from the sale.
Founded in 1994 and headquartered in Kolkata, Anmol has built a broad portfolio spanning biscuits, cookies and cakes. Its products are sold under about 70 brands, while the company has also established an international footprint, exporting to 31 countries.
The proposed listing comes after a strong financial year for the company. Anmol’s net profit increased nearly five-fold to 1.91 billion rupees for the year ended March 31, while revenue rose 28% to around 21 billion rupees, according to its draft filing.
The company operates in a highly competitive Indian packaged-food market, where it faces established listed players including Britannia Industries, ITC and Mrs. Bectors Food Specialities.
Anmol’s decision to return to the public markets also revives an earlier listing plan. The company had sought to launch a 7.5 billion-rupee IPO in 2018 and had obtained approval from India’s market regulator, but ultimately did not proceed with the offering.
The latest filing comes as activity in India’s primary market gathers pace following a relatively subdued first half of the year. Companies have increasingly looked to public markets to provide liquidity for existing shareholders and broaden their investor base amid continued interest in new listings.
For Anmol, the proposed transaction would give the family trust an opportunity to partially monetise its holding while potentially providing the company with a public-market valuation and a listed profile. Because the IPO consists solely of shares sold by the existing shareholder, however, the transaction will not provide fresh capital to Anmol for expansion or other corporate purposes.
The offering is being managed by Intensive Fiscal Services, ICICI Securities and IIFL Capital Services, according to the draft documents.