Tea Post Files Draft Papers for IPO...
14 Jun, 2025
Gujarat-based cafe chain Tea Post has officially filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), marking the beginning of its journey toward a public listing. The IPO was announced on June 10, 2025, positioning Tea Post to tap into the capital markets with a total issue size of 2.85 crore equity shares, aiming to fund its aggressive expansion plans and allow existing investors to partially exit.
The IPO proceeds have a balanced mix of a fresh issue and an offer for sale (OFS). Tea Post will issue 1.42 crore new equity shares to raise capital for expansion while an additional 1.42 crore shares will be offered for sale by existing shareholders primarily IndiaNivesh Venture Capital Fund, which currently holds a 33.96% stake in the company. The dual approach ensures both fresh capital infusion and liquidity for current investors.
Before the IPO Tea Post’s promoter group, including Acclaim Enterprise LLP, Darshan Anilbhai Dashani, Samir Anilbhai Dashani, Dashani Bhakti, Jayshreeben P Joshi, and Dashani Divya D, collectively holds a 37.48% stake. The remaining 62.52% is distributed among public shareholders and institutional investors with IndiaNivesh Venture Capital Fund as the most prominent non-promoter stakeholder. The OFS will see IndiaNivesh offload its entire holding, signaling a strategic transition to broader public and institutional ownership.
Tea Post was founded in Gujrat and has established itself as a leading organized tea cafe chain, specializing in freshly prepared teas, complementary beverages and snacks. The company offers over 15 varieties of hot and cold teas, blending traditional flavors with contemporary tastes to deliver a unique “desi” experience. As of February 2025, Tea Post operates 248 outlets both company-owned and franchisee-operated, across 61 cities in Gujarat, Maharashtra, Rajasthan, and Madhya Pradesh. It has recently expanded internationally with three franchise outlets in the UAE.
The company’s financials reflect strong growth where revenue from operations surged from ₹2,588.20 lakh in FY22 to ₹5,401.96 lakh in FY24, with year-on-year growth rates of 67.08% in FY23 and 24.92% in FY24. This performance showcases the brand’s strong market presence and consumer appeal in India’s evolving café culture.
All the IPO proceeds from the fresh issue are reserved for the expansion of Tea Post’s cafe chains, enhancing operational capabilities and strengthening its brand presence in India’s competitive QSR(Quick Service Restaurants) industry. The IPO will also provide the company with the financial muscle to accelerate its growth strategy and consolidate its leadership in the organized tea retail segment.
Cameo Corporate Services Ltd. and Srujan Alpha Capital Advisors LLP have been appointed as the book-running lead managers for the issue. While the DRHP has been filed, details regarding the IPO’s pricing, valuation, and listing dates will be disclosed in the final offering memorandum after regulatory approvals.
Tea Post’s public issue is supposed to attract significant attention from both retail and institutional investors, given the brand’s growth path and the rising popularity of organized tea cafes in India. The listing will take place on both the BSE and NSE.
Tea Post’s IPO filing marks an important milestone in its journey from a regional cafe chain to a national and international brand. The offering not only aims to fuel the company’s expansion but also opens up a new chapter for investors keen to participate in India’s dynamic QSR and cafe sector.
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