In a significant development for India's capital markets, the Securities and Exchange Board of India (Sebi) has cleared the initial public offering plans of twelve companies, according to a regulatory update released on Friday. This move signals robust activity in the primary market and investor confidence in diverse sectors.
Regulatory Green Light for Diverse Firms
The companies that have received Sebi's observations, which effectively amount to approval to proceed with their public issues, are Hella Infra Market (the parent company of construction-tech platform Infra.Market), Purple Style Labs, Jay Jagdamba Ltd, UKB Electronics, CMR Green Technologies, Transline Technologies, Medicap Healthcare, Oswal Cables, BVG India, Sai Parenteral's, Commtel Networks, and Sify Infinit Spaces.
All twelve firms had submitted their draft IPO papers to the capital markets regulator between June and October of the previous year. Sebi issued its observations between January 19 and January 23, 2024, paving the way for these companies to launch their public offerings in the coming months.
Notable IPO Proposals and Structures
Hella Infra Market, backed by Tiger Global and parent to Infra.Market, had proposed an IPO in the range of Rs 4,500 crore to Rs 5,500 crore. The company filed its papers through Sebi's confidential pre-filing route in October last year, according to market sources. The issue is planned as a mix of fresh equity issuance and an offer for sale by existing shareholders.
Sify Infinit Spaces Ltd, a subsidiary of Sify Technologies, has planned a public issue combining a fresh issue of equity shares worth Rs 2,500 crore with an offer for sale valued at Rs 1,200 crore.
Purple Style Labs, which operates the luxury fashion platform Pernia's Pop-Up Shop, aims to raise Rs 660 crore through an IPO that will consist entirely of a fresh equity issue.
Other Key IPO Details
Transline Technologies, a provider of video surveillance and biometric solutions, has proposed a public issue structured solely as an offer for sale of 1.62 crore equity shares by promoters and a shareholder.
UKB Electronics, an electronic manufacturing services company based in Noida, has planned an IPO comprising a fresh issue of shares of up to Rs 400 crore, along with an offer for sale of shares worth another Rs 400 crore.
CMR Green Technologies Ltd, a non-ferrous metal recycler, has proposed its IPO as a complete offer for sale of 4.28 crore equity shares, as stated in its draft red herring prospectus.
Oswal Cables has proposed to raise Rs 300 crore through a fresh issue of equity shares, alongside an offer for sale of up to 2.22 crore equity shares. The company said the funds from the fresh issue will be used for setting up a new project, repaying debt, and meeting general corporate requirements.
BVG India, a facility management services provider, has lined up an IPO comprising a fresh issue worth Rs 300 crore and an offer for sale of up to 2.85 crore equity shares by existing shareholders.
Commtel Networks has planned a Rs 900-crore public issue, which includes a fresh issue of Rs 150 crore and an offer for sale of Rs 750 crore. The company said the fresh issue proceeds will be primarily used to repay debt.
This wave of IPO approvals by Sebi highlights the growing appetite for public listings across various industries, from technology and construction to fashion and manufacturing, reflecting the dynamic nature of India's economic landscape.
