Plans to raise Rs. 125mn, offer 20% stake:
Hybrid Investor Forum on June 26:
Maharaja Food Products Limited plans to raise Rs. 125 million through the issue of 25 million shares at Rs. 5 each. The offer opens on July 4.
Founded by entrepreneur late Sivasaraman Guganathan of Velani, Jaffna, Maharaja Food Products was launched in 1995, sourcing premium quality food items such as rice, potatoes, onions, and lentils empowering local farmers while providing high quality food products to customers.
Today, the company serves local and overseas consumers through its network of distributors in Sri Lanka, France, United Kingdom and Australia.
In June 2022, Maharaja Marketing (Pvt) Limited was formed as a 100%-owned subsidiary, to focus on local distribution whereas MFPL became an export-oriented company.
Executive Director of MFPL, Ms. Thavamalar Guganathan said, “After the demise of my husband in 2016, I was determined to continue his vision for the company with the support of my sons. I am delighted that within a period of eight years under my leadership, we were able to upscale corporate governance structures and finance governance best practices to a level that MFPL met the eligibility criteria for a listing in the CSE, along with sound financial performance to attract stock market investors during the IPO.”
Representing the second generation of the family, Chairman / Executive Director Vijayananth Guganathan said that MFPL predominantly focuses on exports, with 64% of income earned in FY 23/24 surpassing USD 1mn, hence raising fresh equity capital to finance business expansion and growth.
“We will use the majority of IPO funds to set up a Raw Rice Plant and a Rice Polishing Plant, setup a Gingelly Oil plant, expand the building premises to Increase warehousing capacity, and secure additional working capital, Vijayananth said.
Atarah Capital will act as the Financial Advisor and Manager to the offer and sponsor of the IPO.
Managing Director Atarah Capital, Rohan Senewiratne said, “We are delighted with our efforts to introduce a company with founders originating from the Northern Province to be listed in the CSE. MFPL is a women-owned enterprise, hence the listing would encourage women entrepreneurship in Sri Lanka, and inspire others to consider listing as an attractive option to raising equity capital.
The MFPL Group is part of the portfolio of companies that have been supported by USAID CATALYZE PSD Activity through its Funding Readiness Program. This program builds capacity for growth and catalyzes funding for micro, small and medium enterprises in the Food, Agri and ICT sectors in Sri Lanka, with a special focus on women-led businesses.
MFPL Group has their own product portfolio manufactured in-house, as well as being involved in the export of other third-party products (consumables, and household items) that are demanded by the expatriates of Asian origin residing globally.
With a dedication to nourishing the nation and embracing innovation, MFPL Group continues to redefine excellence in the food industry, embodying resilience, and a steadfast commitment to providing healthy, high-quality offerings for generations to come.
