The Securities and Exchange Board of India (SEBI) has given a go ahead to as many as four firms to raise funds through an initial public offering (IPO). Water purifier company Kent RO Systems, Karamtara Engineering, transformer components manufacturer Mangal Electrical Industries and winding and conductivity products maker Vidya Wires have received the regulatory nod to float initial share sales.
The four firms, which filed their preliminary IPO papers in January, obtained Sebi's observations during June 3-6. Together, these firms are expected to raise at least Rs 2,500 crore through maiden public offerings.
Meanwhile, Sai Infinium withdrew its IPO documents on June 4.
Kent RO Systems IPO
Kent RO Systems' IPO is entirely an offer for sale (OFS) of 1 crore equity shares by its promoters. Since the issue consists solely of an OFS, the company will not receive any funds from the IPO.
Karamtara Engineering IPO
Karamtara Engineering's public issue consists of a fresh issue of shares worth Rs 1,350 crore and an OFS component of shares valued at Rs 400 crore by its promoters. Of the net proceeds from the fresh issue, Rs 1,050 crore will be used for debt repayment, while the remaining amount will be allocated towards general corporate purposes.
Mangal Electrical Industries IPO
Rs 450-crore IPO is a complete fresh issue without any OFS portion. As per the draft papers, the company plans to utilise Rs 122 crore from the proceeds to meet working capital requirements, Rs 120 crore for expansion of its manufacturing facility at Sikar, Rajasthan, including civil works at the head office in Jaipur to increase storage capacity, and Rs 96 crore towards debt repayment and general corporate expenses.
Vidya Wires' IPO
A fresh issue of shares aggregating up to Rs 320 crore and an OFS of up to 1 crore equity shares by promoters. The company intends to use the proceeds from the fresh issue for capital expenditure related to new projects under its subsidiary ALCU, repayment of borrowings, and for general corporate purposes.
Equity shares of all four companies are proposed to be listed on the BSE and the NSE.
(PTI Inputs)
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