Four companies namely Zaggle Prepaid Ocean Services, Cyient DLM, Healthvista India, and Rashi Peripherals have received green signal from the capital markets regulator Securities and Exchange Board of India (SEBI) to go ahead with their IPO plans.
All of them have received observations letter last week, with Zaggle and Cyient subsidiary getting on March 29, while the SEBI issued observations for Healthvista and Rashi Peripherals IPOs on March 31, according to an update on the market regulator's website as March 31.
As per SEBI, the issuance of the observation letter for draft red herring prospectus for any IPO filed by the company implies the go-ahead from the market regulator for its proposed fund raising via IPO.
B2B SaaS fintech company Zaggle Prepaid Ocean Services had filed its draft red herring prospectus (DRHP) with the regulator in December 2022, to raise funds via initial public offering that comprises a fresh issuance of shares worth Rs 490 crore and an offer for sale of 1.05 crore equity shares by promoters and investors.
Incorporated in 2011, Zaggle, which builds financial solutions and products to manage the business expenses of corporates, SMEs, & startups, will utilise fresh issue proceeds for customer acquisition and retention; development of technology and products; repaying debts, and general corporate purposes.
Information and communications technology products distributor Rashi Peripherals is planning to raise Rs 750 crore via public issue that comprises only fresh issue. The preliminary documents were filed by the company for IPO in January 2023.
The company claimed that it was one of the fastest growing national distribution partners for global technology brands in India in terms of revenue growth between FY20-FY22.
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Rashi may consider a private placement Rs 150 crore before filing its red herring prospectus with the Registrar of Companies. If the said pre-IPO placement is undertaken, then accordingly the amount raised from the pre-IPO placement will be reduced from the fresh issue.
The company will utilise fresh issue proceeds for repaying debts, and working capital requirements, besides general corporate purposes.
Cyient DLM, the subsidiary of listed IT services firm Cyient, has filed draft papers in January this year, to raise Rs 740 crore via initial public offering. The IPO comprises only a fresh issue and there is not offer for sale portion, which means the entire funds, excluding issue expenses, will be utilised by the company.
The electronic manufacturing services and solutions provider may also consider a pre-IPO placement of Rs 148 crore before filing the IPO papers with the Registrar of Companies. If the said placement is undertaken by the company, then accordingly the fresh issue size will be reduced to the extent of such pre-IPO placement.
The fresh issue funds will be used for incremental working capital requirements, capital expenditure, debt repayment, inorganic growth through acquisitions, and general corporate purposes.
Currently, it is 100 percent owned by Cyient.
Out-of-hospital healthcare provider Healthvista India has filed its IPO papers in July last year. The company plans to raise funds via maiden public issue that consists of a fresh issuance of shares worth Rs 200 crore, and an offer for sale up to 5.62 crore shares by investors.
Accel Growth III Holdings (Mauritius), Accel India III (Mauritius), Ventureast Life Fund III LLC, MEMG CDC Ventures, Qualcomm Asia Pacific Pte Ltd, Accel India V (Mauritius), and Sabre Partners Trust are the selling shareholders in the IPO.
Healthvista is 100 percent owned by the public shareholders with Accel Growth III Holdings (Mauritius), Accel India III (Mauritius) being the biggest shareholders in the company with 14.92 percent and 10.51 percent stake respectively.
The company will make use of fresh issue funds for working capital requirements of material subsidiary Medybiz Pharma, repaying debts, purchase of medical equipment, marketing and brand building activities, inorganic growth initiatives, and general corporate purposes.
Under its brand Portea, Healthvista provides a comprehensive range of out-of-hospital healthcare services, including primary care, geriatric (elderly) and palliative (end-of-life) care, intensive care unit (ICU) care, post-operative and post-hospitalization care, chronic care, mother and baby care and cancer care, all at home.
Per latest Axis Capital report, 50 firms have received observations from the capital markets regulator for their draft papers which are still valid. After adding above 4 companies, the list increased to 54.
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