Hexagon Nutrition has filed preliminary documents with capital market regulator Sebi to raise up to ??600 crore through an initial public offering (IPO).
Hexagon Nutrition, based in Mumbai, is a fully integrated company engaged in product development and commercialization, including research and development and manufacturing of nutritional products.
The public issue of the company consists of a new issue of capital shares amounting to ??100 crore, and an offer to sell (OFS) of up to 30,113,918 shares, according to the Draft Red Herring Prospectus (DRHP).
The OFS includes the sale of up to 77 lakh shares by Arun Purushottam Kelkar, up to 61.36 lakh shares by Subhash Purushottam Kelkar, up to 15 lakh shares by Anuradha Arun Kelkar, up to 25 lakh shares by Nutan Subhash Kelkar, up to 1.22 crore shares by Somerset Indus Healthcare Fund I Ltd and up to 73,668 shares by Mayur Sirdesai.
According to market sources, the size of the issue will be approximately of the order of ??500-600 crores.
The proceeds of the new issues will be used to pay off debt, finance additional working capital requirements, support capital expenditures required for the expansion of an existing facility, investment in a subsidiary and financing. capital expenditures of the existing facility and for general business purposes.
Founded by Arun and Subash Kelkar in 1993, Hexagon Nutrition started out as a player in micronutrient formulations, and today it has moved up the value chain to develop brands like Pentasure, Obesigo and Pediagold, which are premier names. plan in the health, wellness and clinical nutrition space.
In 2016, offshore private equity firm Somerset Indus Healthcare Fund-I, as well as Mayur Anand Sardesai, advisor and director of Somerset Health Capital Advisors, invested ??25 crore for a 10 percent stake in the business.
Hexagon Nutrition had established a trading company in South Africa in 2019 and plans to build a facility there. The company is also setting up a factory in Uzbekistan which is expected to start operations by the first quarter of 2022.
Equirus Capital and SBI Capital Markets are primarily responsible for the matter.
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