BLS E-Services, Jyoti CNC Automation, and Popular Vehicles & Services have received approval from the capital markets regulator Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering.
The SEBI issued observation letters to Jyoti CNC Automation and Popular Vehicles & Services on December 15, while BLS E-Services received the said letter on December 12.
The issuance of an observation letter means the SEBI has allowed the company to go ahead with its IPO plans.
Computerised numerical control machine manufacturer Jyoti CNC, which had filed preliminary papers in September this year, is planning to raise Rs 1,000 crore via public issue comprising only a fresh issue component of shares worth Rs 1,000 crore.
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Of the net fresh issue proceeds, Rs 450 crore will be utilised by the company for repaying its debts and Rs 300 crore for long-term working capital requirements. The remaining funds will be kept for general corporate purposes.
The Gujarat-based company with the 12th largest market share in the global CNC machine industry delivers customised solutions to industries such as aerospace and defence, auto and auto components, general engineering, EMS, and dies & moulds.
The book-running lead managers to the issue are Equirus Capital, ICICI Securities and SBI Capital Markets.
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Popular Vehicles and Services, which is engaged in automotive dealerships, had refiled preliminary papers in September this year, to mop up funds through IPO. Earlier it had filed IPO papers in August 2021 but deferred the issue due to weak market conditions.
As per the DRHP, the IPO consists of a fresh issuance of shares worth Rs 250 crore and an offer-for-sale (OFS) component of 1.42 crore equity shares by Banyantree Growth Capital II, LLC.
The Kerala-based company, the leading diversified automotive dealership in the country with a presence across the automotive retail value chain, will use net fresh issue proceeds for repaying its debt and general corporate purposes.
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ICICI Securities, Nuvama Wealth Management, and Centrum Capital are acting as merchant bankers for the offer.
BLS E-Services, the subsidiary of visa and immigration services company BLS International Services has filed its IPO papers with the SEBI in August 2023. The public issue comprises only a fresh issue of 2.41 crore equity shares by the company and there won't be any OFS component in the offer.
The company intends to utilise net fresh issue funds for strengthening its technology infrastructure to develop new capabilities and consolidate the existing platforms.
The money will also be used for funding initiatives for organic growth by setting up BLS stores and achieving inorganic growth through acquisitions, besides general corporate purposes.
Unistone Capital is the sole book-running lead manager to the issue.
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