Srinivasa Farms raises $23 million from IFC


Indian poultry company Srinivasa Farms is being lined up for backing from The International Finance Corporation (IFC), the investment arm of the World Bank.


IFC, an investment arm of the World Bank, has proposed its investment in the form of straight equity, compulsorily convertible preference shares or compulsorily convertible debentures.


Srinivasa Farms has plans to invest up to ₹400 crore for its pan-India expansion and product diversification, apart from capacity enhancement in the next 3-4 years.


As part of this, the Hyderabad-based company has raised $23 million (approx ₹160 crore) from the IFC.


The entire exercise of infusion of funds, expected to be completed by the middle of September, is expected to lead to an equity dilution of around 17-18 percent.


The investment by IFC will help the company expand its existing layer, broiler and breeding operations by setting up additional farms and hatcheries, expanding feed mills, adding soya refineries, setting up a food park in Prakasam district, and chicken and egg processing businesses.


At present, the company is focussed on the breeding business.


The company wants to approach new markets in Gujarat, Haryana and Odisha next year. At present, the focus is on strengthening operations in the traditional base of AP, Telangana and the recent ones in Maharashtra and Tamil Nadu.


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