Inox Clean Energy, Sky Alloys withdraw IPO papers; Sterlite Electric out of abeyance

IPO News

Inox Clean Energy and Sky Alloys and Power have decided to withdraw their IPO papers last week on December 5 while the Sterlite Electric's draft papers are under the SEBI review again after getting removed from abeyance, as per the latest processing status of draft offer documents report published by the regulator on December 9.

Inox Clean Energy, the Uttar Pradesh-based solar modules and cell manufacturer, had preferred to file its Draft Red Herring Prospectus (DRHP) via confidential route with the SEBI in July this year, to raise funds via initial public offering (IPO).

According to media reports quoting market sources, the INOXGFL group company was likely to raise at least Rs 6,000 crore via IPO at possible valuation of around Rs 50,000 crore.

Incorporated in 2017, Inox Clean Energy develops renewable energy (RE) projects, and manufactures solar cells and modules through its two subsidiaries - Inox Neo Energies, and Inox Solar, having an operational capacity of 157 MW (107 MW wind & 50 MW solar) and under construction capacity of 400 MW (350 MW hybrid and 50 MW solar).

Chhattisgarh-based steel manufacturer Sky Alloys and Power also tapped capital markets in September by filing the draft document with the SEBI for fund raising via IPO.

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The IPO of 1.78 crore equity shares is a mix of 1.6 crore news shares, and an offer-for-sale of 18.07 lakh shares by promoters.

Incorporated in 2009, Sky Alloys produces sponge iron, mild steel billets, ferro-alloys, and TMT bars from its manufacturing facilities at Raigarh, Chhattisgarh.

Meanwhile, the draft document of Sterlite Electric, a part of the Anil Agarwal-led Vedanta Group, has been put under the SEBI review again after removed from abeyance.

The capital markets regulator had put the issuance of observations on Sterlite Electric’s IPO papers in abeyance on October 27, following reports of allegations by US-based short seller Viceroy Research against parent Vedanta Group.

SEBI generally puts IPOs on abeyance where it has uncovered non-compliance with rules, or if there is pending or ongoing regulatory scrutiny. Once the pending non-compliance is resolved or settled, the regulator generally gives a green light. In the recent past, it has put several IPOs in abeyance, including WeWork India, JSW Cement, SK Finance and National Securities Depository (NSDL).

Now, the SEBI has sought clarifications and response from lead managers on the queries related to Sterlite Electric before issuing observations on its IPO papers.

Sterlite Electric that manufactures overhead conductors, power cables supply and solutions, optical ground wire (OPGW) approached capital markets in September to raise funds via IPO of 1.55 crore shares which is a combination of fresh issue of 77.93 lakh shares, and an offer-for-sale of 77.95 crore shares by existing shareholders.

Meanwhile, the SEBI has issued observations on the draft papers of five companies - Molbio Diagnostics, Leap India, Foodlink F&B Holdings (India), Technocraft Ventures, and Eldorado Agritech.