Afcons Infrastructure, Godavari Biorefineries, Shivalik Engineering get Sebi nod to float IPOs

Afcons Infrastructure, Godavari Biorefineries, Shivalik Engineering get Sebi nod to float IPOs

Five companies including Afcons Infrastructure, Godavari Biorefineries, and Shivalik Engineering have received approval from the capital markets regulator SEBI (Securities and Exchange Board of India) to go ahead with IPO plans.

Diversified conglomerate Shapoorji Pallonji Group-backed construction and engineering player Afcons Infrastructure Ltd, has received observation letter from the regulator on September 13, to mobilise Rs 7,000 crore through public issue. It had filed IPO papers with Sebi on March 28, 2024.

The Afcons IPO is a mix of fresh issue of shares of Rs 1,250 crore and an offer for sale of up to Rs 5,750 crore by promoter Goswami Infratech, according to the draft red herring prospectus (DRHP) filed by the company in March 2024.

In SEBI parlance, the receipt of observation letter means the company can launch its IPO within the next one year.

Afcons Infra plans to use proceeds from the fresh issue to the extent of Rs 150 crore for capital expenditure towards purchase of construction equipment and Rs 350 crore for funding long term working capital requirements, the company said in a statement on September 16. The remaining Rs 500 crore will be used for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company; and general corporate purposes.

Afcons operates in various infrastructure sectors, including marine, surface transport, urban infrastructure, hydro and underground, and oil and gas projects.

ICICI Securities, DAM Capital Advisors, Jefferies, Nomura, Nuvama and SBI Capital are the book-running lead managers. Link Intime is the registrar of the issue.

In June 2023 , Moneycontrol was the first to report that Shapoorji Pallonji Group-backed Afcons Infrastructure had shortlisted five investment banks, namely ICICI Securities, Jefferies, Nomura, DAM Capital and SBI Capital as advisors for a big-bang listing aimed at raising up to Rs 8,000 crore.

Sterling and Wilson Solar was the last company from the Shapoorji Pallonji Group to make a debut on the domestic bourses in August 2019.

Meanwhile, the markets regulator has issued observation letter to Shivalik Engineering on September 13, and Godavari Biorefineries on September 5, while Quadrant Future Tek, and Enviro Infra Engineers received the said letter on September 12.

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Precision engineering company Shivalik Engineering had filed draft papers on June 28 for fund raising via public issue. Its IPO is a combination of fresh issue of Rs 335 crore, and an offer-for-sale of 41.3 lakh equity shares by the existing shareholders.

Promoters Giriraj Singhania and Raghvendra Singhania will offload 12.04 lakh shares each in the offer-for-sale, and the remaining shares will be sold by public shareholders.

Mandala Capital AG-backed Godavari Biorefineries had refiled IPO papers on June 13 this year. Its initial public offering is a mix of fresh issuance of equity shares worth Rs 325 crore, and an offer-for-sale (OFS) of 65.26 lakh equity shares by investor and promoters.

Private equity firm Mandala Capital AG will be selling 49.26 lakh equity shares in the OFS, and the remainder shares will be offloaded by promoters. The ethanol based chemicals manufacturer will utilise fresh issue proceeds mainly for repaying debts.

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Quadrant Future Tek, which had filed draft red herring prospectus with the SEBI on June 2 this year, targets to raise Rs 275 crore through its IPO which comprises of solely fresh issue.

Punjab-based Quadrant Future Tek that offers speciality cables for railways rolling stock and Naval (defence) industry will utilise fresh issue proceeds for long-term working capital requirements, development for electronic interlocking system, repaying debt, and general corporate purposes.

Jain family-owned Enviro Infra Engineers, which develops water and wastewater treatment plants, had refiled IPO papers on June 26, 2024. Its maiden public issue is a mix of fresh issue of 4.42 crore equity shares, and an OFS of 52.68 lakh shares by promoters.

However, the SEBI has returned draft papers of Armee Infotech on September 13. It had filed preliminary papers with the regulator on June 21, 2024, to raise Rs 250 crore via IPO.