Amir Chand Jagdish Kumar IPO: Sebi Approves Rs 550 Cr

New Delhi, Oct 14 (PTI) Basmati rice exporter Amir Chand Jagdish Kumar (Exports) Ltd has secured Sebi's approval to raise Rs 550 crore through an initial share sale, an update with the markets regulator showed on Tuesday.

The Haryana-based company's proposed initial public offering (IPO) is entirely a fresh issue of equity shares with no offer-for-sale component, according to the draft red herring prospectus (DRHP).

The company, which filed its preliminary IPO papers in June, obtained Sebi's observations during the week on October 8, the update showed.

In regulatory terms, Sebi's observations is equivalent to clearance for launching a public issue.

Going by the draft papers, Amir Chand Jagdish Kumar (Exports) Ltd is looking to raise about Rs 50 crore in a pre-IPO round. If the pre-IPO round takes place, then the size of the fresh issue will be reduced accordingly.

The net proceeds from the fresh issue will be used by the company to fund the working capital requirements and general corporate purposes.

Amir Chand Jagdish Kumar (Exports) Ltd is a processor and exporter of basmati rice in India. The company markets its products under the flagship brand "Aeroplane". It competes with the likes of other large basmati rice companies, including KRBL Ltd, LT Foods and Sarveshwar Foods, and various other unorganised processors.

The company has also diversified into FMCG products, offering staples and essential kitchen supplies.

For the nine-month period ended December 31, 2024, the company posted a revenue from operations of Rs 1,421.3 crore and profit after tax of Rs 48.77 crore.

The company's shares are proposed to be listed on the BSE and NSE.