Varmora Granito, Knack Packaging among 4 IPOs receive SEBI approval; Infifresh Foods withdraws confidential draft papers

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Four companies - Varmora Granito, Knack Packaging, Shivalaya Construction, and Behari Lal Engineering have received approval from the SEBI to go ahead with IPO plans, while Infifresh Foods has withdrawn its draft papers filed via confidential route.

The capital markets regulator has issued observations on the draft document of Varmora Granito on December 15, followed by Shivalaya Construction, and Behari Lal Engineering on December 24, and Knack Packaging on December 26.

The issuance of observations allows the company to launch its Initial Public offering (IPO) within the next one year.

Varmora Granito, the Ahmedabad-based tiles and bathware maker, filed Draft Red Herring Prospectus (DRHP) with SEBI in August this year to raise funds via IPO. It proposed to mobilise Rs 400 crore via fresh issue of shares, while investor Katsura Investments , and promoters will be offloading 5.24 crore equity shares via offer-for-sale.

The fresh issue proceeds will be utilised mainly for repayment of certain borrowings and the remainder for general corporate purposes.

Another Ahmedabad-based company Knack Packaging, which is one of the largest manufacturers of printed and laminated woven polypropylene bags, also filed the draft document this year in September to fund its new facility and for capital expenditure.

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Its IPO is a combination of fresh issuance of Rs 475 crore worth shares, and an offer-for-sale of 70 lakh shares by promoters.

Shivalaya Construction, the New Delhi-based infrastructure engineering, procurement and construction company with a focus on roads, highways development and maintenance also filed DRHP with SEBI in September.

The company approached capital markets to raise Rs 450 crore via fresh shares, while promoters intend to offload 2.48 crore shares via offer-for-sale.

The fresh issue proceeds will be used mainly for debt repayment, and the remainder funds for general corporate purposes.

Delhi-based Behari Lal Engineering, the iron and steel manufacturing company specialising in customised engineering solution, too, filed preliminary papers in September. The IPO is a mix of fresh issue of shares worth Rs 110 crore, and an offer-for-sale of 78.54 lakh shares by investor SG Tech Engineering, and promoters.

The company proposed to spend fresh issue proceeds for its capital expenditure, repayment of borrowings, and general corporate purposes.

Meanwhile, B2B seafood platform Infifresh Foods, the parent company of Captain Fresh, filed IPO papers via confidential route in August this year. The company has withdrawn these papers on December 24. According to media reports, the IPO size by the Bengaluru-based seafood exporter was likely Rs 1,700 crore which is expected to be used for repaying borrowings.

“We have voluntarily withdrawn our pre-Draft Red Herring Prospectus (PDRHP) to facilitate the expedited closure of a contemplated material acquisition,” Infifresh Foods said in its official statement.

The company further said it has secured all necessary regulatory approvals for the acquisition and has been executing final transaction activities that will significantly enhance its global market position.

“In view of this, we are maintaining the requisite capital structure flexibility to facilitate these strategic equity investments. This withdrawal is a strategic measure in this direction,” it added.

The company said its original IPO roadmap following the PDRHP filing remains unimpacted. Captain Fresh remains committed to its original listing timelines and will proceed with a fresh filing upon the closure of the transaction.