Mumbai-based Foodlink F&B Holdings (India) Limited, a global luxury food services company, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 27, aiming to raise funds through an initial public offering (IPO) to support expansion plans and reduce debt.
The proposed IPO comprises a fresh issue of equity shares aggregating up to Rs 160 crore, and an offer for sale (OFS) of up to 1.19 crore equity shares by existing shareholders, including both promoters and institutional investors.
Promoter entities participating in the OFS include Ankita Chugh, Trans Global Hotels LLP, and Sanjay Manohar Vaziran. Institutional investors looking to offload stakes include Arpit Khandelwal (Plutus Wealth Management), V’Ocean Investments, Oaks Asset Management, Aarkay Investments, the Welspun Group Master Trust, and Aarin Capital Partners (through partners T.V. Mohandas Pai and Ranjan Ramdas Pai), as well as Bona Terra Greenhouses.
Promoters currently hold a 63.4 percent stake in the company, while the remaining 36.6 percent is owned by external investors, including Arpit Khandelwal with an 11.15 percent stake and V’Ocean Investments, which holds 7.02 percent.
In addition to the IPO, Foodlink may also consider a pre-IPO placement of up to Rs 32 crore, subject to market conditions and regulatory approvals.
The company intends to utilise Rs 40.9 crore from the fresh issue proceeds to establish two new centralised kitchens and Rs 45.4 crore to open four new casual dining restaurants through its subsidiary, Foodlink Global Restaurants & Catering Services LLC. A further Rs 28.4 crore will be allocated for debt repayment, with the remainder earmarked for general corporate purposes.
Foodlink operates across multiple segments, including event catering, banquets, integrated F&B services, casual dining restaurants, and cloud kitchens. The company is known for its curated culinary experiences in the premium and luxury food services space.
On the financial front, the company reported a loss of Rs 15.4 crore in FY24, in contrast to a profit of Rs 2.7 crore in FY23, even as revenue rose sharply by 38.1 percent year-on-year to Rs 377.2 crore. For the nine-month period ending December 2024, Foodlink reported a profit of Rs 7.4 crore on revenue of Rs 306.4 crore.
Equirus Capital and JM Financial are acting as the book-running lead managers for the issue.
