Upcoming IPO: Curefoods India files papers with SEBI to raise Rs 800-crore via IPO

Curefoods India — a cloud kitchen operator — has filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise Rs 800 crore through a public issue.

The proposed IPO will comprise an offer for sale (OFS) of 4.85 crore equity shares by existing shareholders.

Utilisation of proceeds

The company has outlined the following allocation of funds raised:

Rs 126.32 crore: For establishing new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens
Rs 19.91 crore: For adding new brands to existing cloud kitchens
Rs 6.31 crore: For purchasing machinery and equipment
Rs 126.93 crore: Allocated for debt repayment
Rs 40 crore: For lease payments on existing properties in India
Rs 14 crore: For marketing and promotional activities

Moreover, the company will invest Rs 91.96 crore in its subsidiary Fan Hospitality Services, Rs 11.35 crore in Cakezone Foodtechs, and Rs 81.15 crore for acquiring further stakes in Millet Express Foods, Munchbox Frozen Foods, and Yum Plum.

A portion of the proceeds will also be reserved for future acquisitions, strategic initiatives, and general corporate purposes.

Pre-IPO Funding

The Bengaluru-based company also plans to raise Rs 160 crore in a pre-IPO funding round. If this placement is completed, the size of the fresh issue will be reduced accordingly.

Curefoods IPO: BRLMs, registrar details

JM Financial, IIFL Capital Services, and Nuvama Wealth Management are acting as the book-running lead managers (BRLMs) for the IPO.

What does Curefoods do?

Curefoods India is a multi-brand food services company offering a diverse range of cuisines. Its distribution model combines delivery and on-site service through cloud kitchens, kiosks, and restaurants.