Amir Chand Jagdish Kumar gets Sebi’s nod to raise Rs 550-cr via IPO

Basmati rice exporter Amir Chand Jagdish Kumar (Exports) Ltd has received Sebi’s approval to raise Rs 550 crore through an initial share sale, an update from the market regulator said on Tuesday.

The proposed initial public offering (IPO) of the Haryana-based company is entirely a fresh issue of shares without any element of an offer for sale, as per the draft red herring prospectus (DRHP).

The company, which filed its preliminary IPO papers in June, obtained the observations from Sebi in the week of October 8, the update showed.

In regulatory terms, Sebi’s comments are equivalent to permission to launch a public issue.

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

The net proceeds from the new issue will be used by the company to finance working capital needs 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 other major basmati rice companies, including KRBL Ltd, LT Foods and Sarveshwar Foods, and several other unorganized processors. The company has also diversified into FMCG products, offering basics and kitchen essentials.

For the nine-month period ended December 31, 2024, the company posted 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.