India: Apex Foods raises $6.8m from anchor investors ahead of IPO

Photo: Aniruddha Chowdhury/Mint

Aquaculture company Apex Frozen Foods Ltd said on Monday it has raised Rs43.58 crore by selling shares to institutional investors as part of the so-called anchor book allocation, a day ahead of the opening of its initial public offering (IPO).

The anchor book is that portion of an IPO that bankers can allot to institutional investors on a discretionary basis. Anchor book subscription opens a day before the launch of an IPO and acts as an indicator of institutional investor interest.

Apex’s IPO opens on 22 August. The company has set a price band of Rs171-175 per share for the share sale. Apex is looking to raise approximately Rs152 crore at the upper end of the price band.

The anchor book allocation saw institutional investors buy 2.49 million shares at the upper end of the price band. Institutional investors who participated in the anchor book allocation included Reliance Mutual Fund, HSBC Mutual Fund and Invesco Mutual Fund.

The IPO will see a fresh issue of 7.25 million shares, which at the upper end of the price band will fetch the company approximately Rs126 crore. The proceeds will be used to set up a new shrimp processing unit with a capacity of around 20,000 million tonnes per annum in Andhra Pradesh.

Karuturi Satyanarayana Murthy, chairman of the company, will sell 1.45 million shares in an offer for sale. At the upper end of the price band, the share sale will fetch the promoter Rs25 crore.

Karvy Investor Services Ltd is managing the share sale.

Apex, established in 1997, is an integrated producer and exporter of shelf stable and ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors across the US, UK and European countries.

Also read:

India: Apex Frozen Foods IPO to launch on Aug 22

This story was first published on Livemint

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.