Maharaja Foods Ltd., a leading producer and exporter of authentic Sri Lankan food and spices, is set to commence secondary market trading at the Colombo Stock Exchange (CSE) today.
The company’s Initial Public Offering (IPO), which opened on July 4, was oversubscribed and closed on the first day, highlighting the significant interest in Maharaja Foods. The IPO aimed to raise Rs. 125 million but received 662 applications totaling Rs. 322 million, nearly three times the target amount.
Investor enthusiasm, particularly from non-retail and strategic high-net-worth investors, is expected to positively impact secondary market performance. These investors secured a significant portion of the shares, while applications also came from Licensed Market Intermediaries, including Unit Trusts and Investment Managers.
Maharaja Foods has already started implementing its IPO objectives, as outlined in the Prospectus. The company is set to enhance production efficiency with the addition of a Raw Rice plant (10 metric tons per day) and a Rice Polishing Plant (2,000-5,000 kg per hour). Managing Director Vithyanath Guganathan reported that advance payments have been made, with the new plants expected to be operational by mid-August.
The company has also begun production at its newly acquired Gingelly Oil Plant, with the first shipment already completed. IPO funds are being used to bolster working capital, support direct sourcing of paddy from farmers, and expand warehouse facilities, with construction planned to start in August 2024.
Executive Non-Independent Director Thavamalar Guganathan praised the overwhelming IPO response as a testament to investor confidence. Chairman Vijayanath Guganathan noted the new listing status has opened doors for international exposure, including participation in the Export Development Board (EDB) trade show in Australia, aimed at expanding the company’s market reach.
Maharaja Foods, known for its flagship Maharaja Super Supermarket and a diverse range of quality food products, including hand-roasted rice flour and local spices, continues to uphold its commitment to quality and sustainability. The company’s strengthened financial position and strategic investments offer promising prospects for future growth and shareholder returns.