Aeroplane Rice plans to tap capital markets, files IPO papers to raise Rs 550 crore

Aeroplane Rice IPO

Haryana–based Amir Chand Jagdish Kumar (Exports), the basmati rice exporter & producer under the brand Aeroplane, is planning to tap capital markets for fund raising via initial public offering (IPO). It has filed draft papers with the SEBI on June 27.

The IPO consists of solely fresh issuance of shares worth Rs 550 crore. Of which, Rs 500 crore will be utilised for working capital requirements and the remainder for general corporate purposes.

The company may consider fund raising up to Rs 50 crore in pre-IPO round. If it successfully closes pre-IPO placement, the said amount will be reduced from the fresh issue.

Amir Chand Jagdish Kumar (Exports) is the third largest company in the basmati rice segment in terms of revenue, amongst the listed entities after LT Foods, and KRBL. Chaman Lal Setia Exports, GRM Overseas, and Sarveshwar Foods are other listed competitors to the company.

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The company that operates three manufacturing, processing and packaging facilities in Punjab, Haryana and New Delhi, has registered 100 trademarks, including 70 trademarks in India and 30 trademarks across 26 countries primarily in Europe, Asia and Africa, along with 22 copyrights in India.

On the financial front, the basmati rice products contributed majority of its revenue (99 percent). Profit for the fiscal 2024 at Rs 30.4 crore grew by 73.8 percent and revenue at Rs 1,549.5 crore increased by 17.8 percent compared to previous fiscal. Profit in nine months ended December 2024 was at Rs 48.8 crore on revenue of Rs 1,421.3 crore.

The merchant bankers appointed to handle the Amir Chand Jagdish Kumar (Exports) IPO will be Emkay Global Financial Services, and Keynote Financial Services.