Shiprocket, Meesho, Skyways Air Services among 7 firms to receive SEBI nod to float IPO

IPO News

Shiprocket, and Meesho have received approval from SEBI for their draft IPO documents filed via confidential route, paving the way for their public listing plans. The public issue papers of other five companies - German Green Steel and Power, Rajputana Stainless, Skyways Air Services, Manika Plastech, and Allied Engineering Works - have also been also cleared by the capital markets regulator in the week ended October 31.

The regulator has issued observations on the confidential Draft Red Herring Prospectus of ecommerce platform Meesho on October 14, and logistics & supply chain platform Shiprocket on October 31.

Further, German Green Steel and Power has received observations on its IPO document on October 20, Manika Plastech on October 29, Allied Engineering Works and Rajputana Stainless on October 30, and Skyways Air Services on October 31.

The issuance of observations means the company can float its IPO within the next one year, while in case of confidential filing, the company has 18 months to launch its IPO. Within 18 months, it has to file the Updated DRHP with the SEBI, followed by RHP filing with the Registrar of Companies for IPO launch.

Meesho, the low-cost e-commerce platform, filed its Draft Red Herring Prospectus (DRHP) via the confidential route available with the Securities and Exchange Board of India (SEBI) in July this year. After receiving approval for the document, the company filed an updated DRHP on October 18.

The Bengaluru-based company plans to raise Rs 4,250 crore through the issuance of fresh shares, while existing shareholders — including Peak XV Partners, Elevation Capital, Y Combinator, VH Capital, and promoters Vidit Aatrey and Sanjeev Kumar — will sell up to 17.56 crore equity shares via an offer-for-sale (OFS).

Zomato and Temasek-backed Shiprocket had filed pre-filed DRHPs with the capital markets regulator in May this year, planning to raise between Rs 2,000–2,400 crore through their initial public offering (IPO), which will consist of both a fresh issue and an OFS.

Meanwhile, German Green Steel and Power, which filed its IPO papers with SEBI in June, has proposed to raise Rs 450 crore via a fresh issue. The offering also includes an OFS of up to 20 lakh equity shares by existing promoters.

Rajputana Stainless refiled its draft papers in the same month to raise funds through an IPO to set up a new facility and reduce its debt burden. The 2.09-crore-share IPO will comprise a fresh issuance of 1.46 crore shares and an OFS of 62.5 lakh shares by promoter Shankarlal Deepchand Mehta.

Skyways Air Services, a Delhi-based air freight forwarding and logistics company, filed its draft document on June 30 this year for an IPO. It has proposed to issue 3.29 crore fresh shares, while existing shareholders, including promoters, will offload 1.33 crore shares via an OFS.

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Manika Plastech, a Mumbai-based rigid polymer packaging manufacturing company, is planning to raise Rs 115 crore through the issuance of new shares for capital expenditure and debt reduction. Its promoter entity, VRIDAA Holding Trust, will offload 1.5 crore shares via an OFS. The company filed its draft papers in June.

Allied Engineering Works, a Delhi-based smart energy meter manufacturer, approached the capital markets for fundraising by filing its DRHP with SEBI in July this year. The IPO will be a combination of a fresh issue worth Rs 400 crore and an offer-for-sale of 75 lakh shares by promoter Ashutosh Goel.

However, Bombay Coated and Special Steels has withdrawn its draft papers on October 30, while SEBI returned the draft document of Vishal Nirmiti on the same day.

Bombay Coated and Special Steels, a Mumbai-based firm specialising in processing steel coils into processed steel products for OEMs (original equipment manufacturers) and ODMs (original device manufacturers) in the home and commercial appliances, as well as general engineering sectors, had filed preliminary papers with SEBI in September to raise funds primarily for debt reduction. The IPO comprised of entirely fresh issue.

Vishal Nirmiti, a Pune-based civil engineering, manufacturing, and construction company, had also filed its DRHP in September for its IPO plans. The company had proposed to raise Rs 125 crore through a fresh issue of shares, while the promoter entity, Vaman Prestressing Company, was to sell 15 lakh shares through an offer for sale (OFS).