Swastika Infra receives green signal from SEBI to float IPO, fresh issue size reduced after pre-IPO round

Swastika Infra IPO

Swastika Infra, the EPC company specialising in execution of power distribution infrastructure projects, has received approval from the SEBI to raise funds via initial public offering (IPO).

The company has filed draft document for its IPO on March 30 this year, and the capital markets regulator has issued observation letter on those draft papers this week.

The issuance of observation letter means the company can hit Dalal Street with its IPO plan within the next one year from the date of observation letter.

The IPO will be a mix of fresh issuance of equity shares worth Rs 160 crore, reduced from the earlier size of Rs 200 crore due to pre-IPO round, and an offer-for-sale of 19.2 lakh shares by existing shareholders, including promoters.

Swastika Infra, which provides services for underground cabling work, construction of substations, rural and urban electrification projects, and installation of street lighting systems, has already mobilised Rs 40 crore in pre-IPO round by allotting 24.24 lakh shares to several investors at Rs 165 per share on July 28 this year.

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Investors that invested through pre-IPO placement included Ashvi Ventures, Resonance Opportunities Fund, Equity4life, and Rajputana Biodiesel.

Swastika Infra, which competes with only listed peer Rajesh Power Services will use Rs 145 crore of the fresh issue proceeds for its working capital requirements, and the remainder funds for general corporate purposes.

Srujan Alpha Capital Advisors, and PhillipCapital (India) are managing the Swastika Infra IPO.