Apex Frozen Foods, an integrated producer and exporter of aquaculture products, plans to invest nearly Rs 90 crore in setting up its biggest facility in Andhra Pradesh from the proceeds of public listing, said a senior company executive.
The company, which is going public on August 22, looks to raise nearly Rs 150 crore by divesting 28% shares with promoters retaining 72%.
Chudary Karturi, executive director, Apex frozen Foods, said, “Of the proceeds from the IPO, Rs 90 crores will be invested in setting up a 20,000 tons per annum shrimp processing unit at East Godavari District in Andhra Pradesh (AP), work at which has already started. The balance funds would be used for general corporate purposes”.
The company has already invested Rs 10 crore in the upcoming plant. This will be the company’s biggest plant after an existing plant with a capacity of 9,240 tons per annum at Kakinada at AP and a third party facility with a capacity of 6,000 tons per annum. It had taken a capacity addition of 3,000 tons this year taking its total capacity to around 15,000 tons.
“We expect our overall capacity to be around 30,000 tons per annum with the upcoming plant as 5,000 tons capacity would be dedicated for ready to eat products while the rest 15,000 tons capacity would be for manufacturing of ready to cook items,” said Karturi.
The company exports processed shrimps to the United States, United Kingdom and the European Union.
