Paramesu Biotech has received the Securities and Exchange Board of India’s (SEBI's) approval to raise Rs 600 crore through an initial public offering (IPO). The proposed IPO is a combination of a fresh issue of shares worth Rs 520 crore and an Offer-For-Sale (OFS) of shares to the tune of Rs 80 crore by promoter Unimark Business Solutions.
Proceeds from the fresh issue worth Rs 330 crore will be used for setting up a new plant of 1,200 TPD (tonnes per day) in Madhya Pradesh, Rs 85 crore for payment of debt and the rest towards general corporate purposes. Pantomath Capital Advisors is the sole book-running lead manager to the issue.
Paramesu Biotech is one of the largest manufacturers of maize-based speciality products in India. The diversified product portfolio includes native maize starch, modified maize starches, liquid glucose, maltodextrin powder, and co-products such as germs, gluten, fiber, corn steep liquor and enriched fiber, among others.