Fincare SFB, Western Carriers get the Sebi green light to float public issues

Fincare Small Finance Bank, Western Carriers get green signal from Sebi

Three companies - Fincare Small Finance Bank, Western Carriers and Valiant Laboratories - have received the green light from Sebi to go ahead with their plans to raise funds by going public.

Private equity firms TA Associates and True North-backed Fincare Small Finance Bank, which filed the draft IPO papers with the markets regulator on May 1, was issued an observation letter on September 15.

Its initial public offering (IPO) comprises a fresh issuance of shares worth Rs 625 crore and an offer-for-sale of 1.7 crore equity shares of 12 shareholders, including promoter entity Fincare Business Services.

Wagner, an affiliate of the US-based private equity investor TA Associates, and True North Fund V LLP, an India-based private equity firm, will be selling shareholders in the Fincare OFS.

Indium IV (Mauritius) Holdings, Omega TC Holdings, LeapFrog Rural Inclusion (India), Silver Leaf Oak (Mauritius), Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti Axa Life Insurance Company, TATA Capital Financial Services, and Zuno General Insurance (formerly known as Edelweiss General Insurance Company) will also offload their shares in the Fincare OFS.

In Sebi's parlance, the observation letter means the company can float its public issue for raising funds. The approval is valid for one year.

Fincare Small Finance Bank will utilise net fresh issue proceeds for augmenting its Tier-1 capital base to meet the future capital requirements.

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This would be seen as the sixth small finance bank on the bourses after listing. Equitas SFB, AU SFB, Ujjivan SFB, Suryoday SFB, and Utkarsh SFB are already listed on the exchanges.

ICICI Securities, Axis Capital, IIFL Securities, SBI Capital Markets, and Ambit are the merchant bankers to the issue.

Western Carriers, and Valiant Laboratories received observation letters from the regulator on September 22 and September 12, respectively.

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Kolkata-based logistics company Western Carriers' maiden public issue consists of a fresh issue of Rs 500 crore worth of shares and an OFS of 93.29 lakh shares by promoter Rajendra Sethia.

The company will make use of net fresh issue proceeds for repaying debts amounting to Rs 200.24 crore, while capital expenditure for commercial vehicles, 40-foot specialised containers and 20 feet normal shipping containers; and reach stackers at a cost of Rs 186.1 crore will be done by the fresh issue money. The remaining funds will be used for general corporate purposes.

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The book running lead managers to the issue are JM Financial, and Kotak Mahindra Capital Company.

Further, Valiant Laboratories has launched its public issue, opening on September 27 with a price band of Rs 133-140 per share. Its public issue comprises only a fresh issuance of shares worth Rs 152.46 crore by the company. The offer will close on October 3.

The fresh issue money will be utilised for setting up of a manufacturing facility for specialty chemicals at Saykha Industrial Area, Gujarat, by subsidiary Valiant Advanced Sciences (VASPL). Further, the said subsidiary's working capital requirements will also be done by fresh issue proceeds. The balance amount will be used for general corporate purposes.

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State-owned Wapcos has withdrawn its public issue proposal, which comprises only an OFS by the government.

"Wapcos Limited issue withdrawn on September 21, 2023," said the Sebi in its 'processing status of draft offer documents' release. The engineering consultancy services and construction company had filed DRHP for fund raising through IPO on September 26, 2022.