Tea Post files draft papers for IPO, IndiaNivesh Venture Capital Fund plans to cut down stake via OFS

Tea Post IPO

Gujarat-based tea cafe chain operator Tea Post plans initial public offering (IPO) for expansion along with stake sale by investor IndiaNivesh Venture Capital Fund. It has filed draft red herring prospectus with the SEBI last week.

The 2.85-crore shares IPO will be a combination of fresh issue and an offer-for-sale of 1.425 crore equity shares each, as per the draft papers filed on March 30.

Investor IndiaNivesh Venture Capital Fund, who is the largest shareholder in the company with 33.96 percent stake (3.05 crore shares), will be selling 1.425 crore shares via offer-for-sale.

Promoters own 37.48 percent stake in Tea Post, the largest player in organised tea retailing industry in Gujarat, and the remainder 62.52 percent shares are held by public shareholders including IndiaNivesh Venture Capital Fund.

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The company, which operates a network of 248 stores (Tea Cafés) in Gujarat, Maharashtra, Rajasthan, and Madhya Pradesh, will be utilising Rs 39.46 crore out of net fresh issue proceeds for opening new company operated Tea Cafés, and the remaining funds for general corporate purposes.

In addition to the Indian markets, it has recently entered into United Arab Emirates through three franchisee-operated Tea Cafés.

Srujan Alpha Capital Advisors LLP will act as the sole book running lead manager for the issue.