Jana SFB, India Shelter Finance Corp, DOMS and 2 others get Sebi nod to float IPOs

Sebi issues observation letter to 5 companies including Jana SFB, and Doms Industries

Jana Small Finance Bank, India Shelter Finance Corporation and Doms Industries have received approval from the capital markets regulator to go ahead with the IPO plans. Onest and Shiva Pharmachem are also ready to float their public issues.

The SEBI issued an observation letter to Onest and DOMS Industries on November 16, while Jana Small Finance Bank received the said letter on November 7 and India Shelter Finance Corporation on November 13.

Shiva Pharmachem, too, got the observation letter from the regulator in the current month.

The issuance of an observation letter, in the Sebi parlance, means the company can go for fundraising by launching IPOs within a year from the receipt of the observation letter.

Jana Small Finance Bank has refiled its draft papers with the Sebi in July this year to raise funds via public issues. The initial public offering (IPO) comprises a fresh issuance of shares worth Rs 575 crore and an offer-for-sale (OFS) of up to 40.5 lakh equity shares by its existing shareholders.

Client Rosehill, CVCIGP II Employee Rosehill, Hero Enterprise Partner Ventures, and Global Impact Funds are the selling shareholders in the OFS.

Also read: IPO Frenzy: Grey market suggests Fedbank listing may come a cropper but Tata Tech, a bumper

The bank, if successfully completes the IPO process, will be the seventh small finance bank to debut on the bourses after AU Small Finance Bank, Ujjivan SFB, Equitas SFB, Suryoday SFB, Utkarsh SFB and ESAF SFB.

Jana SFB has seen strong financial performance after being impacted by the Covid-19 pandemic. It recorded a net profit of Rs 256 crore in the financial year ended March FY23, increasing significantly from Rs 17.47 crore in the previous year.

India Shelter Finance Corporation, which is backed by marquee investors such as WestBridge Crossover Fund and Nexus Ventures, filed its IPO papers in August this year, to float a Rs 1,800-crore IPO comprising a fresh issue of Rs 1,000 crore by the company and an offer-for-sale of Rs 800 crore by investors.

Catalyst Trusteeship, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III and Nexus Opportunity Fund II are offloading shares in the OFS component.

Promoters WestBridge Crossover Fund LLC holds a 24 percent stake and Aravali Investment Holdings 31.4 percent stake in the Gurugram-headquartered affordable housing firm.

Also read: IREDA to debut on November 29. Will it beat grey market premium?

Among investors, Nexus Ventures III has 22 percent shareholding, Nexus Opportunity Fund II 6.4 percent, Catalyst Trusteeship 5.3 percent, MIO Starrock 4.9 percent, and Madison India Opportunities IV 1.4 percent.

Italian company FILA-backed stationery and art products maker Doms Industries has also filed a draft red herring prospectus in August this year, to launch an initial public offering with a target to mobilise Rs 1,200 crore.

The public issue by the Gujarat-based company consists of a fresh issuance of shares worth Rs 350 crore and an OFS of Rs 850 crore worth of shares by promoters.

FILA- Fabbrica Italiana Lapised Affini S.p.A. is the corporate promoter in the company with 51 percent shareholding, offloading shares worth Rs 800 crore via OFS, while domestic promoter Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will be selling shares worth Rs 25 crore each via OFS.

Gujarat-based speciality chemicals company Shiva Pharmachem, which also filed IPO papers in August, is planning for Rs 900-crore fundraising via an initial public offering.

The issue comprises only an OFS by its promoters Vishal Rakesh Agrawal and Rahul Rakesh Agrawal who will be selling shares worth Rs 383 crore each, while Geetganga Investment will sell Rs 134 crore worth of stocks via OFS.

FMCG company Onest filed draft papers in July this year to come out with a public offer comprising a fresh issue of Rs 77 crore and an OFS of 32.5 lakh shares by promoter and investors.

Founder and promoter Pawan Kumar Gupta, who holds an 84.46 percent stake in the company, will be offloading 26.64 lakh shares via the OFS route and Glentrade DMCC will be selling 4.68 lakh shares via offer for sale.