Gopal Snacks, Dee Development Engineers, and SRM Contractors were allowed by the capital markets regulator SEBI to go ahead with their fund raising plans via initial public offerings.
The regulator issued observations letter to Dee Development Engineers on February 7, Gopal Snacks on February 8, and SRM Contractors on February 9, as per the processing status of draft offer documents note published by the regulator.
The issuance of observations letter by SEBI means the company can launch its public issue within a year from the date of getting the observation letter.
The piping solutions company had filed draft papers with the market regulator on September 28, 2023. The IPO is a mix of fresh issue of shares worth Rs 325 crore by the company and an offer-for-sale (OFS) of 79 lakh shares by promoter Krishan Lalit Bansal.
The Haryana-based company may consider fund raising of Rs 65 crore in a pre-IPO placement before the filing of a red herring prospectus with the Registrar of Companies.
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The net fresh issue proceeds will be utilised mainly for working capital requirements amounting to Rs 75 crore of the company, and repaying debts of Rs 175 crore.
SBI Capital Markets and Equirus Capital are the book running lead managers to the issue.
The Gujarat-based FMCG company, which had filed preliminary papers with the regulator on November 21 last year, is planning to raise Rs 650 crore through its public issue.
The IPO comprises of only an offer-for-sale (OFS) by the existing shareholders including promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts.
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Promoters Bipinbhai Vithalbhai Hadvani, Dakshaben Bipinbhai Hadvani, Gopal Agriproducts and Raj Bipinbhai Hadvani hold 93.5 percent in the company, while the rest of 6.5 percent share are held by public shareholders including Harsh Sureshkumar Shah, Axis Growth Avenues AIF – I and Ashoka India Equity Investment Trust.
Intensive Fiscal Services, Axis Capital, and JM Financial are acting as merchant bankers to the issue.
SRM Contractors IPO
The Jammu and Kashmir-based engineering construction and development company intends to hit the capital markets with the IPO of 62 lakh equity shares. The IPO consists of only a fresh isssue by the company and there is no offer-for-sale component, as per the draft papers filed with the SEBI on September 29 last year.
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SRM Contractors is going to spend Rs 40 crore of the net fresh issue proceeds for purchase of equipment/machineries; and Rs 10 crore for repaying debts.
Further, Rs 41.50 crore will be used for working capital requirements, and Rs 12 crore for investment in project specific joint venture projects.
SRM is engaged primarily in the construction of roads (including bridges), tunnels, slope stabilisation works and other miscellaneous civil construction activities in the Union Territories of Jammu & Kashmir and Ladakh.
Interactive Financial Services is the sole book running lead manager to the issue.
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