Tea Post IPO: Tea Post, which operates the tea café chain, wants to launch its IPO. In this, investor IndiaNivesh Venture Capital Fund will sell stake. The Gujarat-based company has filed a draft red herring prospectus with capital market regulator SEBI last week. According to the draft papers, there will be 1.425 crore new shares in the IPO. Also, there will be an offer for sale of the same number of equity shares.
IndiaNivesh Venture Capital Fund is the largest shareholder in Tea Post with a 33.96 per cent stake or 3.05 crore shares. It will sell 1.425 crore shares through the OFS. Tea Post is the largest company in the organised tea retail industry in Gujarat.
250 tea cafes in more than 50 cities
Tea Post has 250 tea cafes in more than 50 cities in Gujarat, Maharashtra, Rajasthan and Madhya Pradesh. Promoters hold 37.48 percent stake in the company. The remaining 62.52 percent shares are held by public shareholders including IndiaNivesh Venture Capital Fund. Srujan Alpha Capital Advisors LLP will act as the sole book running lead manager for the IPO.
How will the IPO money be used
Tea Post will use Rs 39.46 crore of the money raised by issuing new shares in its IPO to open new tea cafes. The rest of the money will be spent for general corporate purposes. The company has recently entered the UAE through 3 franchise-operated tea cafes.
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