Sandhya Marines files papers for IPO

Sandhya Marines Ltd, an Andhra Pradesh-based exporter of value added frozen seafood products, on Wednesday filed the draft red herring prospectus (DRHP) for its initial public offering (IPO).

The share sale will comprise a fresh issue worth Rs300 crore and an offer-for-sale of 12.6 million shares by the company’s promoters, according to the share sale documents.

Proceeds from the IPO will be utilized for setting up of a shrimp processing unit, an aqua-feed mill facility and a new corporate office and for the repayment of debt.

Incorporated in 1987, Sandhya Marines exports ready-to-cook and ready-to-eat frozen seafood products that are made from cultured Pacific White Shrimp across North America, Europe and Asia.

According to the DRHP, in fiscal 2017 Sandhya Marines reported total revenue of Rs528.84 crore, up 47% from the previous year. Revenue from the US market accounted for 78.65% of the company’s total revenue. The company’s profit rose 48% to Rs32.74 crore in 2016-17 from a year earlier.

The company has appointed Karvy Investor Services Ltd and SBI Capital Markets to manage the share sale.

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