Golden Agri’s 56 percent-owned subsidiary Gemini Edibles files for India IPO

Palm kernels at a plantation in IndonesiaPalm kernels at a plantation in Indonesia

Golden Agri-Resources said Sunday its 56.27 percent-owned subsidiary, Gemini Edibles & Fats India, or GEF, has started the process to list on India’s BSE and National Stock Exchange, filing its draft red herring prospectus.

India-based GEF makes, distributes and brands edible oils and speciality fats.

If the IPO application is approved, the IPO will include a secondary offering by GEF’s existing shareholders, for up to 25 billion rupees, or around US$333 million, of which Golden Agri is offering up to 7.5 billion rupees, or around US$100 million, the Singapore-listed palm-oil player said in a filing to SGX.

Golden Agri said it expected to remain the largest shareholder in GEF post-IPO.

The IPO’s details are still being finalised and will be subject to market conditions, regulatory approvals and definitive agreements by stakeholders, the filing said.

The company’s products sunflower oil, rice bran oil, mustard oil, ground-nut oil and palmolein oil, as well as specialty fats for snack foods, confectionary, frozen desserts and food ingredients. Its brands include Freedom and First Klass.

The bulk oil business has trading desks for crude and refined palm, sesame, rice bran, sunflower, soyabean, ground nut and cotton seed oil, with imports mainly from Indonesia, Malaysia, Argentina and Brazil.

Earlier this year, GEF reported its fiscal year profit was 5.71 billion rupees, jumping from 1.85 billion rupees in the previous year. Revenue for the 12 months ended 31 March was at 77.66 billion rupees, up from 65.0 billion rupees in the previous year, the company said.