Indian F&B Sector Set for ₹9,000 Crore IPO Surge
About a dozen Indian food and beverage companies are planning IPOs, aiming to collectively raise approximately ₹9,000 crore. Key players include Milky Mist Dairy Food (₹2,035 crore), Prestige Hospitality Ventures (₹2,700 crore), Infifresh (₹1,700 crore), Curefoods India (₹800 crore), and Foodlink (₹160 crore). Other notable contenders are Orkla India, Cremica Foods, Haldiram Snacks Food, and HyFun Foods. Most companies await SEBI approval, with Orkla India and Prestige Hospitality Ventures yet to file their DRHP. The surge is driven by rising incomes, growing middle class, urbanization, and higher disposable incomes, reflecting confidence in India's consumption sector.
*this image is generated using AI for illustrative purposes only.
The Indian food and beverage (F&B) sector is gearing up for a significant wave of initial public offerings (IPOs), with about a dozen companies planning to go public in the coming months. These IPOs are expected to collectively raise approximately ₹9,000 crore, signaling a robust appetite for investment in the country's burgeoning consumption sector.
Key Players in the IPO Pipeline
Several prominent companies are leading this IPO surge:
| Company Name | IPO Size (₹ Crore) | Fresh Issue (₹ Crore) | Offer for Sale (OFS) |
|---|---|---|---|
| Milky Mist Dairy Food | 2,035.00 | 1,785.00 | ₹250 crore |
| Prestige Hospitality Ventures | 2,700.00 | 1,700.00 | ₹1,000 crore |
| Infifresh | 1,700.00 | 1,700.00 | - |
| Curefoods India | 800.00 | 800.00 | 48.5 million shares |
| Foodlink | 160.00 | 160.00 | 11.9 million shares |
Other Notable Contenders
The IPO pipeline also includes several other significant players:
- Orkla India (parent company of MTR Foods): Targeting nearly ₹5,000 crore
- Cremica Foods: Expected to raise between ₹800-1,000 crore
- Haldiram Snacks Food: Anticipated to raise around ₹5,000 crore
- HyFun Foods: Also in the IPO pipeline, though specific details are not yet available
Regulatory Status
Most of these companies are currently awaiting approvals from the Securities and Exchange Board of India (SEBI). However, Orkla India and Prestige Hospitality Ventures have not yet filed their draft red herring prospectus (DRHP) with the regulator.
Driving Factors
Industry experts attribute this surge in IPO interest to several key factors:
- Rising per capita incomes
- Growing middle class
- Increasing urbanization
- Higher disposable incomes
These factors collectively contribute to the growing investor interest in India's consumption sector, particularly in the F&B and hospitality industries.
Implications for the Market
This wave of IPOs in the F&B sector could potentially reshape the Indian stock market landscape, offering investors new opportunities to participate in the growth of the country's consumption story. It also reflects the confidence of these companies in the public markets and their readiness to transition from private to public entities.
As these companies prepare to go public, investors and market watchers will be keenly observing how these new entrants perform, potentially setting the tone for future IPOs in the sector. The success of these offerings could encourage more companies in the F&B and hospitality sectors to consider going public, further enriching the Indian capital markets.
While the IPO plans signal optimism, potential investors should conduct thorough due diligence and consider factors such as each company's financial health, growth prospects, and the overall market conditions before making investment decisions.
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