Luxury food services provider Foodlink F&B Holdings files draft papers to raise funds via IPO

The luxury food services provider may consider a pre-IPO placement amounting to Rs 32 crore.

Mumbai-based Foodlink F&B Holdings (India), a global luxury food services business focused on providing curated culinary experiences, has decided to tap capital markets to raise funds via initial share sale for expansion and debt reduction. It has filed preliminary papers with the SEBI on June 27.

The IPO will be a combination of fresh issuance of equity shares worth up to Rs 160 crore, and an offer-for-sale (OFS) of 1.19 crore shares by existing shareholders.

Apart from promoters (Ankita Chugh, Trans Global Hotels LLP, and Sanjay Manohar Vaziran), investors - Arpit Khandelwal, V’Ocean Investments, Oaks Asset Management, Aarkay Investments, Welspun Group Master Trust, Aarin Capital Partners (through its partners T V Mohandas Pai and Ranjan Ramdas Pai), and Bona Terra Greenhouses will also offload shares via OFS.

Promoters hold 63.4 percent stake in Foodlink F&B Holdings, and the remainder 36.6 percent shares are owned by others including Plutus Wealth Management's Arpit Khandelwal (11.15 percent stake), and Mauritius-based hedge fund V’Ocean Investments (7.02 percent shares).

The luxury food services provider may consider a pre-IPO placement amounting to Rs 32 crore.

Foodlink F&B Holdings that operates in events catering, banquets and integrated F&B services, and casual dining restaurants & cloud kitchens segments plans to spend Rs 40.9 crore out of fresh issue proceeds for setting up two new centralised kitchens, and Rs 45.4 crore for setting up four new casual dining restaurants through subsidiary Foodlink Global Restaurants & Catering Services LLC.

Further, it will repay some debt amounted to Rs 28.4 crore through fresh issue money, and will use remaining funds for general corporate purposes.

On the financial front, the company has seen strong growth in topline but there was inconsistency in bottomline. It has posted loss of Rs 15.4 crore for the fiscal 2024 against profit of Rs 2.7 crore in the previous year and revenue during the same period grew sharply by 38.1 percent to Rs 377.2 crore YoY. Profit for nine months period ended December 2024 was at Rs 7.4 crore on revenue of Rs 306.4 crore.

The merchant bankers handling the Foodlink F&B Holdings (India) IPO will be Equirus Capital, and JM Financial.