Eight more companies are now ready to launch their initial public offerings (IPOs) as they have received the nod from the Securities and Exchange Board of India (Sebi). However, Inox Green Energy Services has decided to scrap its IPO plans by withdrawing draft papers.
FabIndia, Capillary Technologies, Harsha Engineers, Infinion Biopharma, Aether Industries, Syrma SGS Technology, Asianet Satellite Communications, and Sanathan Textiles have received approval from the capital markets regulator to go ahead with their IPO plans.
Leading ethnic wear and lifestyle retailer FabIndia had filed its draft papers in January this year for its maiden public offer that comprises a fresh issue of Rs 500 crore and an offer for sale of 2.5 crore equity shares by promoters and investors. The firm is backed by marquee investor Azim Premji's investment arm Premji Invest (PI Opportunities Fund-I).
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Along with promoters, investors PI Opportunities Fund I, and Prazim Trading and Investment Company will offload more than 1.47 crore lakh equity shares via offer for sale. The company may also raise Rs 100 crore through its pre-IPO placement before filing its red herring prospectus. Accordingly, if the said fund raising is undertaken, the fresh issue size may get reduced to the extent of the amount raised.
The net proceeds from fresh issue will be utilised for voluntary redemption of NCDs issued by the company and repaying of certain debts, apart from general corporate purposes.
Capillary Technologies India, an artificial intelligence-based cloud-native software-as-a-solution (SaaS) products and solutions provider, is planning to raise Rs 850 crore through its IPO. The offer consists of a fresh issue of Rs 200 crore and an offer-for-sale of Rs 650 crore by promoter Capillary Technologies International Pte Ltd (CTIPL), which holds 98.06 percent shareholding in the company. The draft red herring prospectus was filed in December last year.
In February this year, precision bearing cages manufacturer Harsha Engineers International had filed preliminary papers for a Rs 755 crore initial public offering. The offer comprises a fresh issue of shares worth Rs 455 crore and an offer for sale of shares worth Rs 300 crore by promoters Rajendra Shah, Harish Rangwala, Pilak Shah, Charusheela Rangwala and Nirmala Shah.
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The Ahmedabad-based company will utilise the net proceeds of its fresh issue for repaying debts, purchasing machinery, boosting infrastructure and renovating production facilities including office premises in India.
Tech-focused engineering and design company Syrma SGS Technology, and Surat-based specialty chemical manufacturer Aether Industries had also filed their draft papers in December last year
Syrma is expected to raise Rs 1,000-1,200 crore through its IPO as per market sources. The offer comprises an issuance of shares worth Rs 926 crore and an offer for sale of up to 33,69,360 shares by promoter Veena Kumari Tandon.
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The net proceeds from fresh issue will be used for the development of a research and development facility, expansion of facilities, and long-term working capital requirements.
The planned IPO of Aether Industries consists of a fresh issue of Rs 757 crore and an offer for sale of up to 2.57 million shares by its existing promoter Purnima Ashwin Desai. The company will utilise fresh issue funds for its proposed greenfield project, repaying debts and working capital requirements.
Asianet Satellite Communications is another company that received approval from the capital markets watchdog, after filing preliminary papers in December 2021.
The internet service provider intends to mop up Rs 765 crore through its IPO that comprises a fresh issuance of shares worth Rs 300 crore, and an offer-for-sale of Rs 465 crore by promoter Hathway Investments. The company will repay its debts and expand network infrastructure through fresh issue funds.
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Sanathan Textiles, which had filed IPO papers in January this year, is planning to raise funds in the range of Rs 1,200-1,300 crore from the primary market. The offer consists of a fresh issue of Rs 500 crore and an offer for sale of 1.14 crore equity shares by promoters. It is a 100 percent promoter-owned entity.
The company will pay its borrowings through fresh issue funds, and utilise the rest of funds for working capital requirements and general corporate purposes.
Infinion Biopharma had filed draft papers with Sebi in September last year for its IPO that comprises a fresh issue of 45 lakh equity shares. The funds will be utilised for investment in Mobius Biomedical Inc, acquisition of licences for product development of skincare and women's health products and working capital requirements.
The company will also spend fresh issue funds on sales, marketing and distribution expenses for setting up geographical reach, besides general corporate purposes.
However, Inox Green Energy Services, earlier known as Inox Wind Infrastructure Services, withdrew its preliminary papers last week. The company had planned to raise Rs 740 crore through its public issue and had filed papers in February 2022.
With this, a total of 59 companies have received approval from Sebi and are ready to launch IPOs.
So far, eight companies have launched their IPOs including Vedant Fashions, Adani Wilmar, Campus Activewear, Rainbow Children's Medicare and Veranda Learning Solutions. Life insurance major LIC will open its Rs 21,000-crore offer on May 4.
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