Cloud kitchens operator Curefoods India on Sunday filed preliminary papers with markets regulator SEBI seeking its approval to raise funds through an initial public offering (IPO).
The proposed IPO is a combination of fresh issuance of shares worth ₹800 crore, and an offer-for-sale of 4.85 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP).
As part of the OFS, Curefit Healthcare, Iron Pillar PCC, Crimson Winter, Accel India V, Chiratae Ventures India Fund IV, Global eCommerce Consolidation Fund and Alteria Capital Fund will be offloading shares.
The Bengaluru-based Curefoods India, which operates CakeZone and Nomad Pizza, plans to mobilise up to ₹160 crore in pre-IPO round.
If it completes the pre-IPO placement, then the size of the fresh issue will be reduced accordingly.
Proceeds from the IPO to the tune of ₹152.54 crore will be allocated towards expansion and equipment, including ₹126.32 crore for setting up new Krispy Kreme cloud kitchens, restaurants, kiosks and central kitchens; ₹19.91 crore for expanding certain existing cloud kitchens through brand additions, and ₹6.31 crore for purchasing machinery and equipment.
In addition, ₹126.93 crore will be used for payment of debt, ₹40 crore for lease payments for the company's current properties in India and $14 crore on sales and marketing efforts.
Also, the company plans to invest ₹91.96 crore in its subsidiary, Fan Hospitality Services, another ₹11.35 crore will be invested in Cakezone Foodtechs and ₹81.15 crore will be used for acquiring further shareholding in three subsidiaries -- Millet Express Foods, Munchbox Frozen Foods and Yum Plum.
A portion of the proceeds will also be earmarked for funding future acquisitions and strategic initiatives, along with general corporate purposes.
Curefoods India is an internet-driven multi-brand food services company offering comprehensive cuisines. Its multi-channel approach includes providing food offerings to customers under its brands through delivery and non-delivery channels, comprising cloud kitchens, kiosks and restaurants.
JM Financial, IIFL Capital Services and Nuvama Wealth Management are the book-running lead managers to the public issue.