Tea Post Limited IPO: Draft Red Herring Prospectus (DRHP) Filed
Tea Post Limited, a prominent tea cafe chain, has announced its Draft Red Herring Prospectus (DRHP) for an upcoming Initial Public Offering (IPO). This IPO is an Offer for Sale (OFS) of 14,250,000 shares, marking a significant step for the company.
Company Overview
Tea Post Limited, established in 2015, is a rapidly growing organized tea cafe chain within India’s quick-service restaurant (QSR) sector. Headquartered in Ahmedabad, Gujarat, Tea Post has expanded to 250 tea cafes across 60 cities in Gujarat, Maharashtra, Madhya Pradesh, and Rajasthan. It also has an international presence with three cafes in Dubai, UAE.
Tea Post offers a diverse selection of teas and complementary Indian snacks in a comfortable environment. Sourcing high-quality tea from Assam and using locally sourced ingredients, the brand caters to a broad audience with pocket-friendly prices. The menu features over 15 varieties of tea, alongside snacks that cater to diverse customer preferences.
The company operates an asset-light business model, combining company-owned and franchisee-operated stores. This approach enables scalability and efficient supply chain management.
Key Achievements
Tea Post Limited is the largest player in the organized tea cafe market in Gujarat, in terms of store count. With a focus on expansion and quality, the company has established a strong foothold in multiple states and internationally.
Financial Overview
Here is a summary of Tea Post Limited’s recent financial performance:
| Period Ended | December 31 2024 | March 31 2024 | March 31 2023 | March 31 2022 |
|---|---|---|---|---|
| Assets | 57.95 | 50.94 | 40.77 | 30.27 |
| Revenue | 49.65 | 54.69 | 43.69 | 26.00 |
| Profit After Tax (PAT) | -1.02 | -1.02 | -0.94 | -0.94 |
| Net Worth | 20.19 | 9.51 | 10.66 | 11.26 |
| Reserves and Surplus | 19.42 | 8.77 | 9.92 | 10.43 |
| Total Borrowing | 0.20 | 4.15 | 1.44 | 0.17 |
Offer for Sale and IPO Structure
The IPO consists entirely of an Offer for Sale of 14,250,000 equity shares. Here s the allocation for different investor categories:
- Retail Investors: 10%
- Qualified Institutional Buyers (QIB): 75%
- Non-Institutional Investors (NII): 15%
The shares are proposed to be listed on both the BSE and NSE.
Lead Managers and Registrar
The lead manager for the Tea Post Limited IPO is Srujan Alpha Capital Advisors Llp.
The registrar is Cameo Corporate Services Limited.
Conclusion
The Tea Post Limited IPO presents an opportunity to invest in a growing tea caf chain with a strong presence in the Indian QSR sector. Investors are encouraged to stay updated on the IPO dates and consider this investment opportunity. More details will be available as the IPO launch approaches.