Advent International-backed Manjushree Technopack Ltd filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company has plans to raise nearly ₹3,000 crore from the initial public offering (IPO), according to the press release on Tuesday, August 20.
The Bengaluru-based company specializes in rigid plastic packaging (RPP) and is, according to its website, the largest RPP player in the country in terms of installed capacity.
The initial public offering (IPO) comes with a face value of ₹2 per equity share, and it is a mix of fresh issues worth up to ₹750 crore and offer for sale up to ₹2,250 crore by AI Lenarco Midco Limited, according to the company statement.
The offer also involves eligible employees' subscription reservations, as per the release.
Manjushree “in consultation with the book-running lead managers, may consider a further issue of equity shares through a private placement, preferential offer or any other method aggregating up to ₹150 crores as Pre-IPO placement shall not exceed 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced,” said the company in the release.
The rigid plastic packaging (RPP) company plans to use ₹500 crore from the money raised from the public issue to fund the repayment or pre-payment of its outstanding debt. The company also aims to fund its inorganic growth plans through acquisitions and other strategic investments. The proceeds from the public issue will also go to fund general corporate purposes, as per the company's statement.
JM Financial Limited, Avendus Capital Private Limited, Citigroup Global Markets India Private Limited, Global Sachs (India) Securities Private Limited and ICICI Securities Limited are the book runners for the public issue and KFin Technologies Limited is the registrar to the offer, said the company in the press release.
Manjushree has a diversified customer base of 964 customers as of the financial year ended 2024. The company's revenue from operations rose 20.13% to ₹2,117 crore from ₹1,467.05 crore at CAGR between the financial year 2022 and 2024, according to the company.
Manjushree Technopack's products range from containers, preforms, caps and closures, pumps and dispensers, as well as in-house recycling capabilities, according to the press release. The company has customers like Varun Beverages Ltd, Dabur India Ltd, Marico Ltd, Honasa Consumer Ltd, Hershey India Pvt. Ltd, Kansai Nerolac Paints Ltd, Pernod Ricard Private Ltd and Parag Milk Foods Ltd, said the company.
