Andhra Pradesh-based frozen shrimp supplier Devi Seafoods is looking into going public in 2018, according to Indian media reports.
The company, which recorded approximately INR 10 billion (USD 157.7 million, EUR 131.2 million) in revenue in 2018, is in the process of hiring investment banks for a planned initial public offering (IPO), according to Indian business journal Livemint.
The company did not comment on the report, but sources told Livemint the company’s ownership is seeking to dilute its stake in the company and generate more primary capital to be used to expand the company’s global presence. Livemint reported that the company hopes to raise INR 10 billion (USD 156 million, EUR 130 million) from the IPO. The company has said publicly it wants to increase its revenue to INR 25 billion (USD 390 million, EUR 327 million) by March 2019, up from yearly revenue close to INR 8.17 billion (USD 127 million, EUR 106 million) logged as of March 2017.
Founded in 1992 and based in Visakhapatnam, Andhra Pradesh, Devi Seafoods is a supplier of frozen shrimp It operates its own processing plants, aquaculture farms, and shrimp hatchery. About 90 percent of its product is shipped to the United States, with about six to seven percent of the remainder exported to Canada, according to Livemint. The company has reported growth of 20 percent and 16 percent, respectively, in production and export sales quantity during the last few years.
In 2016, Devi Seafoods expanded into the manufacture of shrimp feed with the opening of a 40,000-metric-ton production unit near Kakinada in Andhra Pradesh. The new facility was built with an investment of INR 500 million (USD 7.8 million, EUR 6.6 million). The company has plans to upgrade its capacity to 100,000 metric tons by March 2019.
The news comes at as Indian seafood export firms are performing well, tallying exports of 1.14 million metric tons of seafood worth USD 5.78 billion (EUR 4.84 billion) in 2016-17, as compared to 950,000 metric tons worth USD 4.69 billion (EUR 3.92 billion) exported during 2015-16 fiscal year.
