Tara Health Foods files draft paper with SEBI for share sale

NEW DELHI: Edible oil and poultry products maker Tara Health Foods has sought approval from the capital market regulator, Securities and Exchange Board of India, for an initial public offer of one crore shares.

According to the draft red herring prospectus (DRHP) filed with the SEBI, the Ludhiana-based company is considering a pre-IPO placement of 10 lakh equity shares with investors.

The company plans to hit the primary market with one crore equity shares with a face value of Rs 10 each.

Tara Health Foods would utilise the issue proceeds to part finance its expansion plans and to meeting its working capital requirements.

It may also consider placement of share to anchor investors, the draft paper said.

The company is setting up a new edible oil refining plant apart from expansion of its cattle feed plant.

The issue is being made through 100 per cent book building process. The shares offered through the IPO would be listed on the Bombay Stock Exchange and the National Stock Exchange, it added.

Atherstone Capital Markets is the lead book manger of the issue.