Five companies, including India Shelter Finance (an affordable housing finance company), DOMS Industries (a brick-and-mortar maker), and Jana Small Finance Bank (a lender), have received approval from the capital markets regulator Sebi, to raise funds through initial public offers. (IPOs).
Also Read: India Shelter Finance Files for ₹1,800 crore IPO paper with Sebi
Two more companies that have received approval from the regulator to launch their initial public offerings are Vadodara-based Shiva Pharmachem and fast-moving consumer goods (FMCG) firm Onest Ltd.
Five companies submitted initial public offering (IPO) documents or projects to the regulator from July to August received observation letters between November 7 and 16, according to a Tuesday update from the Sebi.
Also Read: Shiva Pharmachem files DRHP to raise ₹900 crore through IPO
In Sebi’s terminology, securing observation letters implies approval to initiate the IPO. Based on the preliminary documents, the proposed by India Shelter Finance ₹1,800-crore IPO involves a fresh issue of equity shares valued at ₹1,000 crore and an ₹800 crore Offer for Sale (OFS) from investment shareholders.
Participating in the OFS are entities such as Catalyst Trusteeship Ltd, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III Ltd, and Nexus Opportunity Fund II Ltd. Backed by Westbridge Capital and Nexus Venture Partners, India Shelter Finance intends to use the funds from the fresh issue for future capital needs in lending and general corporate purposes.
The pencil manufacturer’s initial public offering consists of a fresh number of up to ₹350 crore and OFS of up to ₹850 crore from promoters, as outlined in the draft red herring prospectus (DRHP). Within the OFS, corporate promoter FILA – Fabbrica Italiana Lapis ed Affini SpA – will divest valuable shares. ₹800 crore, while individual promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will each sell shares amounting to ₹25 crores.
Also Read: Pencil maker DOMS files DRHP with SEBI to raise ₹1,200 crore through an IPO
The fresh issue proceeds will be directed towards establishing a new production facility to expand the production capabilities for various pens, watercolor pens, markers and highlighters, along with general corporate purposes.
Jana Small Finance Bank’s IPO encompasses a fresh issue of shares up to ₹575 crore and an OFS of up to 4,051,516 equity shares from existing investors. Among those participating in the OFS are Client Rosehill Ltd, CVCIGP II Employee Rosehill Ltd, Global Impact Funds, SCA, SICAR, Sub-Fund Global Financial Inclusion Fund, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co- Investment Trust, and Hero Enterprise Partner Ventures.
Also Read: Jana Small Finance Bank IPO: Lender files papers with SEBI for ₹575-crore issue
The net proceeds of the fresh issue will be used by the small finance bank to strengthen its Tier 1 capital base for future capital requirements such as organic growth and expansion.
Shiva Pharmachem’s IPO is entirely OFS from to ₹900 crores from advertisers. Since the IPO only consists of OFS, all proceeds will go to the selling shareholders, and the company does not receive any funds from the issue.
Onest’s initial share offering includes a new issue of ₹77 crore and OFS of up to 32.5 crore shares from promoter and other selling shareholders. The fresh theme continues, amounting to ₹60 crore, will be used to fund the working capital requirements of the company, with a portion allocated for general corporate purposes.
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Updated: 29 Nov 2023, 16:54 IST
(tagsTo Translate)India Shelter Finance IPO