Gujarat Polysol Chemicals, PKH Ventures get Sebi's go ahead to float IPOs

(Representative Image)

Chemical manufacturer Gujarat Polysol Chemicals and construction and hospitality firm PKH Ventures have received capital markets regulator Sebi's go ahead to raise funds through Initial Public Offerings (IPOs).

The two companies, which filed preliminary IPO papers with Sebi in March, obtained "observation" letters from the regulator during July 18-22, an update with the markets watchdog showed on Monday.

In Sebi's parlance, its observation implies its approval to float IPOs. Going by the draft papers, Gujarat Polysol Chemicals is looking to raise Rs 414 crore through its initial share sale.

The IPO comprises fresh issue of equity shares aggregating up to Rs 87 crore and an Offer-For-Sale (OFS) of equity shares aggregating up to Rs 327 crore by its promoters. The company will use the net proceeds to retire debt and general corporate purposes.

As per the draft prospectus, the initial share-sale of PKH Ventures consists of fresh issuance of over 1.82 crore and an OFS of 98.31 lakh equity shares by its promoter. Proceeds of the issue will be used to invest in subsidiaries Halaipani Hydro Project Pvt Ltd and Garuda Construction funding long-term working capital requirements, for funding strategic acquisitions and investments, among others.

Shares of the two companies will be listed on BSE and NSE.