ASK Automotive, ESAF Small Finance Bank, Cello World get Sebi approval for IPO launch

Link Intime India is the registrar for all three public issues

ASK Automotive, ESAF Small Finance Bank and Cello World have received approval from the market regulator Securities and Exchange Board of India (SEBI), to go ahead with the fundraising plans via IPO.

The Sebi issued observation letters on all three draft red herring prospectus (DRHP) on October 9, as per the processing status of draft offer documents published by the regulator.

In Sebi's parlance, the issue of an observation letter means the IPO papers filed by the company have been approved and the company can launch the IPO.

ASK Automotive

Brake-shoe and advanced braking systems maker ASK Automotive, which filed the draft papers on June 12 this year, is planning to come out with the IPO of 2.95 crore equity shares comprising only an offer-for-sale (OFS).

Promoters Kuldip Singh Rathee and Vijay Rathee will be the selling shareholders in the OFS, which means the entire issue proceeds will go to promoters.

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ASK, which is the largest manufacturer of brake-shoe and advanced braking systems for two-wheelers in India with a market share of approximately 50 percent in FY22 in terms of production volume for original equipment manufacturers (OEMs) and the branded independent aftermarket is 100 percent owned by the Rathee family.

The company supplies products to all of the top six two-wheeler OEMs, including Hero MotoCorp, Honda Motorcycle and Scooter India, Bajaj Auto, TVS Motor, and Suzuki Motorcycle India.

JM Financial, Axis Capital, ICICI Securities and IIFL Securities are the book-running lead managers to the issue.

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ESAF Small Finance Bank

ESAF Small Finance Bank, which has refiled IPO papers in July this year, intends to mop up Rs 629.04 crore via public issue. The IPO comprises a fresh issuance of shares worth Rs 486.74 crore by the company and an OFS of Rs 142.3 crore by selling shareholders.

ESAF Financial Holdings (corporate promoter), PNB MetLife India Insurance Company, and Bajaj Allianz Life Insurance Company are the selling shareholders in the OFS.

The Kerala-based small finance bank will utilise the net fresh issue proceeds to augment the Tier–I capital base to meet its future capital requirements.

Also read: Hero MotoCorp arm Hero FinCorp picks 8 i-banks for mega IPO of around Rs 4,000 crore

Promoters hold 74.43 percent shares in ESAF, and the balance 25.57 percent shares are held by public shareholders including PNB MetLife India Insurance Company, Muthoot Finance, Bajaj Allianz Life Insurance Company, PI Ventures LLP, and ICICI Lombard General Insurance Company.

Earlier, the bank had filed DRHP for its Rs 997.78-crore IPO in July 2021.

ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management are the merchant bankers on the issue.

Cello World

Mumbai-based consumer products company Cello World filed draft papers in August 2023, to mobilise Rs 1,750 crore via an initial public offering.

The public issue consists of only an offer-for-sale by the selling shareholders including promoters Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, and Gaurav Pradeep Rathod.

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This means the company will not receive any money through the public issue and all the funds, barring IPO expenses, will go to the promoters.

With 13 manufacturing facilities in India, the firm claimed to be the leading entity in the consumerware market in India with a presence in consumer houseware, writing instruments and stationery, and moulded furniture and allied products categories. It is currently establishing a glassware manufacturing facility in Rajasthan.

Also read: GPT Healthcare refiles IPO papers, PE firm BanyanTree Growth Capital to exit

Currently, it is 100 percent owned by the Rathod family.

Merchant bankers appointed for the issue are Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors.

Link Intime India is the registrar for all three public issues.