Kaveri Seed's Rs 100 crore IPO in Sept

Kaveri Seed Company, a Secunderabad-based seed processing company, has filed for draft red herring prospectus (DRHP) with the Sebi for a public issue in early September to raise around Rs 100 crore.

The issue proceeds will be utilised to meet the working capital requirement and setting up new plants such as corn cob drying plant in Andhra Pradesh, a biotechnology lab in Gundla Pochampally near Hyderabad and a seed-processing plant in Hyderabad. Besides, the company is also planning to upgrade its existing seed-processing facilities in Karnataka and Andhra Pradesh.

"We are focusing on small and medium farmers, who own not more than 3 acres of land as they are in desperate need to raise yield. Hence, we help them achieve 10-15 per cent more yield than their usual output," said C Mithun, director of Kaveri Seed Company.

"We are planning to enter the north Indian market with a similar objective," Mithun added.

The company is currently engaged in seed germinating and selling to customers in Karnataka, Tamil Nadu, Maharashtra and Andhra Pradesh and plans to enter the potential markets of Bihar, Madhya Pradesh, Gujarat, Uttar Pradesh, Punjab, Haryana and Rajasthan.

"Rajasthan is our major focus with drought-prone seeding technology for corn, sorghum, bajra and sunflower, while we have introduced cotton in other states," said Sharad Deshpande, general manager of the company.

The company obtained a licence to sell Monsanto seeds this year.

Corn remained in the forefront of the total seeds introduced by the company, especially in Bihar, Uttar Pradesh and Madhya Pradesh, for which it is in the process of setting up a corn cob drying plant with the main aim to improve germination, vigour and viability of corn seeds.