Belgian investor Verlinvest, the largest external shareholder in Epigamia, is looking to sell a part of its stake in the flavoured Greek yoghurt brand, which is also backed by French dairy major Danone and Bollywood actress Deepika Padukone, multiple industry sources in the know told Moneycontrol.
"This proposed deal is a combination of primary and secondary sale of shares. Verlinvest, the biggest shareholder, wants to dilute part stake and take some chips off the table. It holds 30 per cent plus stake in the firm," said one of the persons.
"Additionally, a primary component is also being planned as Epigamia looks to fund the growth of new categories like milkshakes and deserts," added a second person.
In India, the brand which is operated by parent Drums Food International, competes with the likes of Nestle, Mother Dairy and Amul.
A third person told Moneycontrol that an investment bank has been roped in for the transaction.
"Early feelers have been sent to private equity funds. In the last round, which was in mid-2022, Epigamia was valued at around Rs 1,200 crore. The business has turned around in recent times," the person elaborated.
A fourth person familiar with the deal said, "During the course of such transactions, queries can also come in from some strategic players who may not be averse to picking up a minority stake. As of now, there is no intention of a sale and it's only a fundraise."
The likes of ITC and Marico have picked up minority stakes in target firms earlier.
All four persons above spoke to Moneycontrol on the condition of anonymity.
Email queries sent to Epigamia went unanswered at the time of publishing this article, despite reminders. This article will be updated as soon as we hear from the firm.
When contacted, Verlinvest said it could not comment at the moment.
Verlinvest, a consumer sector-focused and family-owned investment holding firm, took an early bet on Epigamia in 2017. Recently, the investor made a complete exit from listed player Sula Vineyards via a block deal.
In March 2019, Deepika Padukone through her investment firm KA Enterprises invested an undisclosed amount in the firm.
Later in September 2019, the investment arm of Danone led a Rs 182 crore investment in Epigamia.
In June 2020, there was a top-up round as the firm raised Rs 40 crore from Danone Manifesto and Mousse Partners. Then in 2022, Epigamia raised debt funding of Rs 35 crore from Grand Anicut.
A taste of Epigamia
Established in 2015, Mumbai-based Epigamia is present in segments ranging from yoghurt, curd and beverages to milkshakes, smoothies and kheer.
According to reports, the brand is retailed across 20,000 touchpoints in more than 30 towns as of December 2023
Last year, the firm announced that Rahul Jain, cofounder and COO, was elevated as CEO with Rohan Mirchandani, former cofounder and CEO, moving into the role of Executive Chairman.
According to a Reuters report dated May 17, 2023, the yoghurt maker aims to "grow its revenue 50 percent to touch $36 million this fiscal year to April 2024, with plans to launch products in the Middle East market by 2025-26."
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