Aeroplane brand basmati IPO: Sebi okays take-off; to raise Rs 550 crore
Sebi has cleared the runway for Aeroplane brand basmati IPO to take off. Amir Chand Jagdish Kumar Exports will float the public issue to raise Rs 500 crore. The instrument will be only fresh shares, which indicates the confidence of the promoters in the company's future.
Kolkata: Indian basmati rice is valued for its quality and aroma all over the world. Capital markets regulator Sebi has cleared the decks for Amir Chand Jagdish Kumar Exports, a Haryana-based company, to raise Rs 550 crore through an IPO. The company will float fresh shares and the issue will have no OFS segment, which could add comfort for the potential investors. The company markets Aeroplane brand basmati rice.
Almost the entire revenue of the company comes from basmati rice. The chief objective of the company is to deploy the proceeds of the public issue for working capital purposes. Reports have stated that the company could mobilise Rs 50 crore in a pre-IPO round. The IPO could be floated in 2026. Emkay Global Financial Services and Keynote Financial Services are the merchant bankers for the public issue.
While the Aeroplane brand is the umbrella brand of the company, there are dozens ofo sub brands of basmati rice under this umbrella. These are Aeroplane Classic, Aeroplane La Taste, Ali Baba, World Cup, Jet etc.
Manufacturing units
The company has three units where basmati rice is processed and packaged. These units are located in the states of Punjab, Haryana and New Delhi. The company has a robust distribution network across the country.
Some of the companies that regarded as competitors of the Aeroplane brand are LT Foods, KRBL, Chaman Lal Setia Exports and GRM Overseas. Significantly, these companies are listed on the stock exchanges.
Apart from basmati rice, other varieties of rice produced by the company include kolam rice, sona masuri, idli rice, and ponni rice. Non-rice products include aata, maida, sooji, besan, salt and sugar. But they constitute a very small part of the revenue.
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