Five companies, including Bajaj Housing Finance and Manba Finance, have received Sebi’s go-ahead to mobilise funds through initial public offering (IPO), an update with the markets regulator showed on Monday. Besides, Baazar Style Retail, Diffusion Engineers Ltd and Deepak Builders & Engineers India received the regulator’s nod for IPO.
On the other hand, the markets watchdog returned the draft IPO document of Santhan Textiles Ltd on July 31. Also, Sebi has lifted the abeyance on the proposed Rs 2,200 crore initial share-sale of SK Finance.
The five firms, which filed their preliminary IPO papers with Sebi between March and June, obtained the regulator’s observation letters during July 30 to August 5, the update showed.
In Sebi’s parlance, obtaining observation letter means its go-ahead to float the public issue.
According to the draft red herring prospectus (DRHP), Bajaj Housing Finance’s Rs 7,000-crore IPO comprises a fresh issue of equity shares of up to Rs 4,000 crore and an offer for sale (OFS) of equity shares worth Rs 3,000 crore by parent Bajaj Finance.
The share sale is being conducted to comply with the Reserve Bank of India’s (RBI) regulations requiring upper-layer non-banking financial companies to be listed on stock exchanges by September 2025.
Proceeds from the fresh issue will be used to augment the company’s capital base to meet future capital requirements.
The proposed IPO of NBFC Manba Finance is entirely a fresh issue of up to 1.26 crore shares with no OFS component, as per the draft papers.
At present, promoters hold 100 per cent stake in the Maharashtra-based Manba Finance.
Fresh capital raised from the issue will be utilised for augmenting the capital base to meet the company’s future capital requirements towards onward lending and for general corporate purposes.
The IPO of Baazar Style Retail is mix of fresh issue of equity shares worth Rs 148 crore and an OFS component of up to 1.68 crore shares by promoter group entities and other selling shareholders.
Earlier, the fresh issue size was Rs 185 crore, which was reduced to Rs 148 crore after venture-capital fund Volrado Ventures Partners Fund II mobilised Rs 37 crore in a pre-IPO round.
Going by the draft papers, proceeds from fresh issuance will be utilized for debt payment and for general corporate purposes.
Diffusion Engineers’ IPO is completely a fresh issuance of 98.5 lakh equity shares and proceeds from the issue will be used for the expansion of its existing manufacturing facility and setting up a new one in Maharashtra.
Deepak Builders & Engineers India’s IPO is a combination of 1.2 crore fresh issue of equity shares and an OFS of 24 lakh equity shares by promoters, draft papers showed.
Funds will be used for working capital requirements of the company, payment of debt and general corporate purposes.
Equity shares of these five firms are proposed to be listed on the BSE and NSE.
