Maharaja Foods Limited (MFPE), a renowned manufacturer and exporter of authentic Sri Lankan food and spices, proudly announces commencing secondary market trading at the Colombo Stock Exchange (CSE) today.
The initial public offering (IPO) opened on July 4 for general investing public, however closed on the opening day itself due to oversubscription. The triumphant completion of its IPO marks a significant milestone for the company.
Targeting a capital raise of Rs.125 million, the IPO attracted overwhelming interest, receiving 662 applications totalling Rs.322 million, which is nearly three times the initial target.
The secondary market’s performance is tipped to demonstrate strong investor confidence, especially from non-retail investors who received only 31 percent of the shares due to oversubscription. The IPO also attracted large applications from well-known strategic high-net-worth investors, who secured positions within the top 10 list of shareholders of MFPE. Furthermore, the IPO attracted applications from licensed market intermediaries under the category of unit trusts and investment managers.
MFPE has already commenced execution of IPO objectives as described in the prospectus.
The raw rice plant, with a capacity of 10 metric tonnes per day and the rice polishing plant, with a capacity of 2000–5000 kilogrammes per hour, are expected to bolster production efficiency and profitability.
Managing Director Vithyanath Guganathan noted, “Advance payments have already been made for the rice polishing plant and raw rice plant. We anticipate receiving these plants by mid-August and commencing production immediately aster commissioning.”
Gingelly oil plant: The machinery for this new product line has been acquired and installed, with production already begun. The first shipment has already been completed, marking significant progress in reducing production costs and meeting rising consumer demand for gingerly oil.
A portion of capital raised from the IPO proceeds has been earmarked to enhance working capital, ensuring smooth operations and enabling cost-effective bulk purchases of raw materials. This allocation of IPO funds supports the company’s strategy to source paddy directly from farmers, stabilising costs.
Warehouse expansion: To support the increased production capacity, an expansion of the warehouse facilities is planned via the IPO funds, enhancing storage capacity for raw materials and finished products. Construction is scheduled to commence in August 2024.
Chairman Vijayanath Guganathan added, “Our recent listing status has opened new doors for us, including participation in the Export Development Board trade show in Australia. This event will showcase our products and establish valuable partnerships, expanding our reach in the Australian market.”
The renowned hand-roasted rice flour remains the crown jewel of the product portfolio while a gourmet selection of local spices are consumer pleasures.
The company’s enhanced financial position, coupled with strategic investments, reassures investors of Maharaja Foods’ promising future. Investors are encouraged to remain confident, recognising the company’s commitment to delivering superior returns and maintaining the highest standards of quality and sustainability.
Source – https://www.dailymirror.lk/amp/business-news/Maharaja-Foods-to-debut-trading-at-CSE-today/273-288082
