Private equity firm Peepul Capital and venture capital firm Ventureast are harvesting part of their investments in packaged organic food company Sresta Natural Bioproducts Ltd, which operates under the brand 24 Mantra.
Peepul Capital has offered to sell a third of its 35% stake in the company. Ventureast, which owns around 38% of the firm via separate funds, will divest more than half of it.
Sresta is looking to raise Rs 50 crore through a fresh issue while its promoters and the PE-VC investors are separately selling their existing shares in the firm.
The company was incorporated in 2004 by Rajashekar Reddy Seelam. It procures, processes, manufactures, and markets organic food products. It had a presence in 34 countries as of September 30, 2021.
Sresta claims its flagship label 24 Mantra is the largest brand in the packaged organic food segment, excluding organic beverage and packaged tea and coffee, in India with approximately 29% market share in 2019-20.
As of September 30, 2021, the company’s procurement network included 34,516 farmers, 190,610 acres of certified organic land across 12 states in India, 65 vendors and companies and various aggregators.
The company recorded revenue of Rs 160 crore and a net profit of Rs 1.1 crore for the six-month period ended September 2021.