Maiam Global Foods plans IPO for expansion

Maiam Global Foods has filed draft red herring prospectus with market regulator for initial public offering of upto 90 lakh equity shares of face value of Rs 10 each - a dilution of 49.70% stake.

The company is engaged in the business of trading and processing of agro products such as pulses, spices and edible oil. It is also engaged in to business of agriculture through cultivation, processing and distribution of vegetables & fruits for commercial as well as captive use.

It ventured into restaurant business as well and operates three restaurants under the name "Jeevan Your Caf�" in and around Chennai.

Maiam intends to use issue money for setting up new restaurants (with an outlay of Rs 22.59 crore); development of green house cultivation (with cost of Rs 13.75 crore); strengthening supply chain management (at cost of Rs 4.81 crore); modernization of plant & machinery for processing of pulses and spices (with Rs 1.85 crore); and for working capital requirements (Rs 13 crore).

For the quarter ended on June 30, 2011, the company reported a net profit of Rs 2.65 crore on total income of Rs 29.81 crore. For the financial year ended on March 31, 2011, it had reported profit of Rs 3.14 crore on total income of Rs 89.33 crore.

The book running lead manager to the issue is Comfort Securities Limited.