Four firms — Fedbank Financial Services Ltd., Indian Renewable Energy Development Agency, EPACK Durable Ltd. and Suraj Estate Developers Ltd.– have received capital markets regulator’s approval to raise funds through initial public offerings.
These companies, which filed preliminary IPO papers with Securities and Exchange Board of India between July and September, obtained the watchdog’s observation letters between Oct. 30 and Nov. 10, an update with the regulator showed on Monday.
In SEBI’s parlance, its observations mean its nod to float the IPO.
Going by the draft papers, the IPO of Fedbank Financial Services (Fedfina) consists of a fresh issue of equity shares aggregating up to Rs 750 crore and an offer for sale of 7.03 crore equity shares by promoter Federal Bank and existing shareholder True North Fund VI LLP.
Under the OFS, Federal Bank will offload 1.65 crore shares, and True North Fund VI LLP will divest 5.38 crore shares.
Fedfina proposes to utilise the net proceeds from the fresh issue towards augmenting the Tier-I capital base to meet its future capital requirements and offer expenses.
State-owned Indian Renewable Energy Development Agency’s IPO consists of a fresh issue of up to 40.31 crore equity shares and an OFS of up to 26.88 crore equity shares by the President of India, acting through the Ministry of New and Renewable Energy, Government of India.
Proceeds from the fresh issue will be used for augmenting IREDA’s capital base to meet its future capital requirements and onward lending.
The initial share sale of EPACK Durable — a leading outsourced design manufacturer of room air conditioners — comprises fresh issuance of equity shares worth Rs 400 crore and an OFS of 1.3 crore equity shares by promoters and promoter group members.
Under the OFS, two investor shareholders — India Advantage Fund S4 I and Dynamic India Fund S4 US 1 — will be offloading shares, apart from promoters.
Proceeds of the fresh issue will be used for funding capital expenditure to set up manufacturing facilities, payment of loans, and general corporate purposes.
Real estate player Suraj Estate Developers’ IPO is entirely a fresh issue of equity shares worth up to Rs 400 crore with no offer for sale component, according to the fresh draft red herring prospectus.
Proceeds to the tune of Rs 285 crore would be used towards the payment of debt availed by the company and its subsidiaries Accord Estates and Iconic Property Developers, up to Rs 35 crore for the acquisition of land, and the remaining funds will be used for general corporate purposes.
The equity shares of these companies will be listed on the BSE and NSE.
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