The Keventer Group is a Rs. 1,500 crore business conglomerate headquartered in Kolkata. Keventer Agro Limited, the Keventer Group’s food processing subsidiary, is among the rapidly emerging food companies in Eastern India. Keventer Agro IPO will hit the market in 2021.
Keventer Agro has a presence in a number of sectors, including dairy, bananas, frozen foods, food export, beverage franchisees, and hospitality franchisees.
Table of Contents
History
Keventer Agro Limited, founded in 1986, acquired the rights to Edward Keventer’s services and now aims to expand on Edward Keventer’s 125-year heritage in Food & Dairy while remaining faithful to Edward Keventer’s ideology and values.
In 1996, Keventer Agro became one of three partners in India’s initial joint sector dairy venture, Metro Dairy, which was sponsored by the World Bank as part of the Operation Flood Phase III Program.
Currently, Metro Dairy is a wholly owned subsidiary of Keventer Agro, and “Metro” is one of Kolkata’s major three dairy brands.
Network
The firm has a strong distribution network in the Eastern area, with 2300 dealers, 35 super C/F agents, and 150,000 retail stores. The firm also operates a dry warehouse and logistics center of 400,000 sq. ft. for customers and associate corporations on a 200-acre campus in Barasat, West Bengal.
It boasts several food processing facilities, all of which have ISO 22000 quality certifications from international institutions.
Partners
Their dedication to maintaining the highest quality standards has won them partnerships with several of India’s most prestigious firms, including Parle Agro (Frooti, Appy, and Bailley), Tata Housing (real estate), ITC (noodle manufacturing), and GFA (Coffee World and Cream & Fudge).
Mission
- To draw on their 125-year history and experience in the food processing and dairy industries.
- Through launching new innovations, and services they will continue to evolve and ensure that the Keventer brand remains important to their customers in ever-changing times.
- To be and remain an important part of their customers’ regular food baskets by offering a diverse selection of items.
- From farm to fork, standard procedures in technology and sanitation are practiced at every level of the food processing value chain.
- To maintain that the Kevlar brand’s slogan of “prosperous life” is clearly communicated to all of our stakeholders, including customers, staff, suppliers, distributors, retailers, and shareholders.
Keventer Agro IPO
Keventer Agro Limited, headquartered in Kolkata has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of 800 Crore on 08 August 2021.
The Offer includes 350 Crore value fresh equity shares and an offer for sell(OFS) of up to 10,767,664 equity shares by the promoters.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 722.92 | 729.11 | 669.65 | ||
| Total Revenue | 836.03 | 958.25 | 884.41 | ||
| Profit After Tax | (76.18) | 3.42 | (0.12) | ||
Basic and Diluted Earnings Per Share
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | (29.05) | (29.05) | 3 |
| Financial Year 2020 | 1.30 | (0.87) | 2 |
| Financial Year 2019 | (0.04) | (0.04) | 1 |
| Weighted Average | (14.10) | (14.82) |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of the offer
Few of the basic parameter values on which the offer price is determined are:
- One of the major companies in East and Northeast India in a large and diverse variety of products that satisfy various client requirements.
- Robust multi-channel distribution platform and technology for efficiency in distribution.
- Visibility of their brand and marketing actions.
- Strong history of bringing new goods and innovation through the existing distribution infrastructure, complemented by successful placement.
- Their state-of-the-art production infrastructure, excellent supplies and high quality and safety standards for foodstuffs.
- Experienced board and well qualified leadership team.
Keventer Agro IPO Peer Comparison
| S. No. | Face value | Company Name | PE |
| 1 | 1 | ITC Limited | 19.3 |
| 2 | 10 | Nestle India Limited | 82.7 |
| 3 | 1 | Dabur India Limited | 61.4 |
| 4 | 5 | Heritage Foods Limited | 14.5 |
| 5 | 10 | Parag Milk Foods Limited | 56.4 |
| 6 | 10 | Dodla Dairy Limited | 26.9 |
| 7 | 10 | Varun Beverages Limited | 68.4 |
| 8 | 1 | Hatsun Agro Products Limited | 82.7 |
Keventer Agro IPO Details
| IPO Opening Date | October 2021 |
| IPO Closing Date | October 2021 |
| Issue Type | Book Building |
| Face Value | 5 per share |
| IPO Price | 0 to 0 per equity share |
| Market Lot | – |
| Min Order Quantity | – |
| Listing At | BSE, NSE |
| Issue Size | 800 crore |
| Fresh Issue | 350 Crore |
| Offer for Sale | 10,767,664 equity shares |
Keventer Agro IPO Date
Keventer Agro IPO opening date is October 2021, and the closing date is October 2021. The issue may list in October 2021.
| IPO Open Date | October 2021 |
| IPO Close Date | October 2021 |
| Basis of Allotment Date | October 2021 |
| Initiation of Refunds | October 2021 |
| Credit of Shares to Demat Account | October 2021 |
| IPO Listing Date | October 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 75 |
Roughly
equivalent
|
| Non Institutional Investor | 15 |
Roughly
equivalent
|
| Retail | 10 | Minimum level of 1 lot, based on availability, for every shareholder. |
Keventer Agro IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Keventer Agro IPO.
Keventer Agro IPO GMP
Keventer Agro IPO Grey Market Premium is 0.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 | |||
| October 2021 |
Keventer Agro IPO Review
Keventer Agro IPO review will depend on the price band. Whenever it will be announced we will update you regarding review of this IPO is good or bad.
Keventer Agro IPO Risk
These are the major issues with Keventer Agro limited:
- Inadequate or interrupted supply of their raw materials, seasonality and price volatility may have a negative effect on their operations.
- Their business and their operations were adversely affected by the coronavirus disease (COVID-19).
- In prior taxation, They have declared a restated loss and in future may result in more losses.
- The Directorate of Enforcement (the government of India), is being investigating against them.
- Some businesses along with one of their promoters as well as certain of their group companies’ stocks have, because to certain infringements of their previously listed requirements, been stopped from trading on Calcutta Stock Exchange Limited.
Other Threats
- Failure to adapt product offers to changing consumer preferences might have a significant negative impact on a company’s bottom line.
- They are subject to a dispute for public interest in connection with their acquisition by the State of West Bengal of equity shares of their former subsidiary MDL.
- Their company & promoters are involved in pending legal procedures that may adversely influence their enterprise.
- If their future development and expansion is not successfully managed, their business might be significantly undesirable.
- Any transportation disruption might have an unfavourable effect on their business.
- In the past financial year, some of their group companies suffered losses.
Keventer Agro IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Keventer Agro IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| October 2021 | 1 | |||||
| October 2021 | 2 | |||||
| October 2021 | 3 |
Promoters
- Mayank Jalan
- Keventer Global Private Limited
- MKJ Developers Limited
- Edward Keventer Private Limited
- Keventer Capital Limited
- Sarvesh Housing Projects Private Limited
- Speedage Trade Limited
Promoter Holding
| Pre Issue Share Holding | 93.84 |
| Post Issue Share Holding |
Keventer Agro IPO Prospectus
Contact Details
Keventer Agro Limited
34/1 D.H. Road, Kolkata 700 027,
West Bengal, India
Tel: +91 33 3503 6200
Email: [email protected]
Website: www.keventer.com
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park, L.B. S. Marg
Vikhroli (West) Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- ICICI Securities Limited
- JM Financials Limited
- Axis Capital Limited
We hope we are able to answer all your questions about Keventer Agro IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Disclaimer
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Keventer Agro IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Keventer Agro IPO of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Keventer Agro IPO Opening Date?
Keventer Agro IPO will open in October 2021.
Keventer Agro IPO Listing Date?
Keventer Agro IPO will list in October 2021.
Keventer Agro IPO GMP Today?
Keventer Agro IPO Grey Market Premium is INR 0.
Keventer Agro IPO Allotment Date?
Keventer Agro IPO basis of allotment will be in October 2021.
Lot size for Keventer Agro IPO?
Lot size for IPO is 0 to 0.
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