Bajaj Housing Finance, Baazar Style Retail, Diffusion Engineers, Deepak Builders, and Manba Finance have received approval from SEBI to raise funds via their initial public offerings.
The capital markets regulator issued an observation letter to Bajaj Housing Finance on August 5, according to the processing status of the draft offer documents published. In SEBI parlance, the issuance of an observation letter means the company can proceed with its IPO plans within the next year.
Bajaj Housing Finance, which filed its draft red herring prospectus (DRHP) with SEBI in June this year, plans to raise Rs 7,000 crore through its IPO. This will be a mix of a fresh issuance of Rs 4,000 crore worth of shares and an offer-for-sale (OFS) of Rs 3,000 crore worth of shares by promoter Bajaj Finance. The mortgage lender will use the fresh issue proceeds to augment its capital base and meet future business requirements for onward lending.
Additionally, SEBI issued an observation letter to Deepak Builders and Engineers India on July 31. The company had filed its draft papers in April 2024.
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The engineering and construction company will use the fresh issue funds primarily for debt repayment and working capital requirements.
On July 30, three companies—Manba Finance, Baazar Style Retail, and Diffusion Engineers—received observation letters from SEBI.
Kolkata-based Baazar Style Retail plans to raise Rs 185 crore through its fresh issue component and offer 1.68 crore shares via OFS. Rekha Rakesh Jhunjhunwala, the largest shareholder with a 7.8% stake, is one of the selling shareholders in the OFS. Other selling shareholders include Intensive Softshare, Chandurkar Investments, Rajnish Gupta, Subroto Trading & Finance, Madhu Surana, and Sabita Agarwal. The fashion retailer, a leader in West Bengal and Odisha's organized value retail market will use the fresh issue proceeds for debt repayment and general corporate purposes. The Baazar Style Retail IPO papers were filed with SEBI in March 2024.
Nagpur-based Diffusion Engineers, which filed its IPO papers in April 2024, plans to issue 98.47 lakh equity shares through its maiden public issue, consisting solely of a fresh issue component. The company, which provides specialized repairs and reconditioning services for heavy machinery and equipment, will use the fresh issue funds to expand its existing manufacturing facility at Khasra, Nagpur, setting up a new manufacturing facility at Hingna, Nagpur, working capital requirements, and general corporate purposes.
Maharashtra-based non-banking finance company (NBFC) Manba Finance filed its IPO papers in March this year, planning a purely fresh issue of 1,25,70,000 equity shares with no OFS component. Manba Finance, 100% owned by the promoter and promoter group, offers new vehicles, used cars, small businesses, and personal loans. The NBFC will use the proceeds to augment its capital base to meet future capital requirements for onward lending.
However, SEBI returned the offer documents of Sanathan Textiles on July 31. The yarn products manufacturer had refiled its preliminary papers in April this year to raise Rs 800 crore via an initial share sale.
Also the regulator has lifted the abeyance on the SK Finance's Rs 2,200 crore initial public offering.
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