Apex Frozen Ltd has received capital market regulator Securities and Exchange Board of India's (Sebi)approval to float an initial public offering.

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The company had filed draft papers with the Sebi in March and got "observations" from the regulator on April 11, which is imperative for any firm to launch public offer, as per the latest update.

The initial offer will comprise a fresh issue of 72.5 lakh shares and on offer for sale (OFS) of up to 14.5 lakh by the existing shareholders, according to the draft red herring prospectus (DRHP).

Proceeds of the IPO will be used for setting up a new shrimp processing unit in East Godavari district, Andhra Pradesh, and general corporate purposes.

Andhra Pradesh-based Apex Frozen is the integrated producer and exporter of shelf stable quality aquaculture products. It supplies ready-to-cook products to a diversified customer base consisting of food companies, retail chains, restaurants, club stores and distributors.