Manjushree Technopack, a leading packaging solutions provider, is set to raise Rs 3,000 crore through an initial public offering (IPO). On August 20, the company filed a draft red herring prospectus with the capital markets regulator. The IPO will include a fresh issuance of Rs 750 crore in equity shares and an offer-for-sale (OFS) of Rs 2,250 crore by the promoter.
The promoter, AI Lenarco Midco, currently holds a 97.54 percent stake in the company. Before filing the Red Herring Prospectus (RHP) with the Registrar of Companies (ROC), the company might raise an additional Rs 150 crore through private placement or other methods. If this occurs, the fresh issue amount will be reduced accordingly.
Manjushree Technopack, based in Bangalore, claims to be India’s largest rigid plastic packaging player by installed capacity. The company serves industries such as food and beverages, personal care, pharmaceuticals, and more. Its revenue share in the organized consumer RPP industry was 7.4 percent in FY23.
The company plans to use Rs 500 crore from the fresh issue to repay debt, which totaled Rs 1,156.3 crore as of June 2024. The remaining funds will be used for acquisitions, strategic growth, and other corporate purposes, while the OFS proceeds will benefit the promoter.
In April, Manjushree acquired Oricon Enterprises’ plastics packaging business for Rs 520 crore. This business includes two manufacturing plants in Goa and Odisha. The IPO will be managed by JM Financial, Avendus Capital, Citigroup Global Markets India, Goldman Sachs
