India’s primary market picked up pace this month after the Securities and Exchange Board of India (SEBI) gave its approval to several companies to proceed with their initial public offerings (IPOs). The approvals came across a wide mix of sectors including logistics, asset reconstruction, jewellery, renewable energy, pharmaceuticals, chemicals, and heavy equipment and showed how broad the market pipeline had become.
Here are the 8 upcoming IPOs this month
1. Asset Reconstruction Company (India) (ARCIL)
The Asset Reconstruction Company (India), the country’s first asset reconstruction company, received SEBI’s approval to list its shares. The IPO comprised an offer for sale of 105.46 million equity shares with a face value of Rs 10 each.
In the offer, Avenue India Resurgence agreed to sell 68.73 million shares, while the State Bank of India agreed to offload 19.44 million shares. Lathe Investment will sell 16.24 million shares, and the Federal Bank is set to divest 1.03 million shares.
IIFL Capital Services, IDBI Capital Markets & Securities, and JM Financial were appointed as the book running lead managers to the issue. Once listed, ARCIL would become the first publicly traded company in India’s asset reconstruction industry.
2. Avaada Electro
The solar manufacturing subsidiary of the Brookfield-backed Avaada Group, also filed a confidential draft red herring prospectus with SEBI. According to reports, the proposed issue size is likely to be Rs 9,000– 10,000 crore, however we are awaiting formal announcement of the exact issue size. Given the fact this is a confidential issue, details with regards to the IPO structure or exact issue size are not available as the moment. The company is part of India’s rapidly expanding solar manufacturing ecosystem.
3. Shadowfax Technologies
Shadowfax Technologies, the Bengaluru-based logistics platform, filed a confidential draft red herring prospectus (DRHP) with SEBI for an IPO of up to Rs 2,500 crore. The offer consisted of a combination of a fresh issue and an offer for sale. The company is backed by TPG and Mirae Asset.The market regulator has granted its approval
4. PNGS Reva Diamond Jewellery
PNGS Reva Diamond Jewellery, a Pune-based retailer with a strong regional presence, filed a DRHP to raise Rs 450 crore through a fresh issue of equity shares with a face value of Rs 10 each. The funds were intended to support the company’s expansion and strengthen its working capital.
5. Rayzon Solar
Rayzon Solar filed a DRHP proposing to raise Rs 1,500 crore through a fresh issue of equity shares with a face value of Rs 2 each. The company manufactured solar modules and related components and planned to use the proceeds to expand its manufacturing capacity. After SEBI’s approval, Rayzon joined the list of renewable energy manufacturers preparing to go public.
6. Sudeep Pharma
Sudeep Pharma filed a DRHP for an IPO that comprised a fresh issue of Rs 95 crore and an offer for sale of 10,07,6492 equity shares with a face value of Rs 1 each. The specialty chemicals and excipient manufacturer served the pharmaceutical and food industries and intended to use the proceeds to fund capital expenditure and meet working capital requirements.
7. Safex Chemicals India
Safex Chemicals India filed a DRHP for an IPO that comprised a fresh issue of up to Rs 450 crore and an offer for sale of up to 35,734,818 equity shares with a face value of Rs 1 each. The agrochemical manufacturer planned to use the fresh issue proceeds to reduce debt and for general corporate purposes.
8. Aggcon Equipments International
Aggcon Equipments International filed a DRHP for an IPO that included a fresh issue of equity shares worth Rs 332.04 crore and an offer for sale of up to 94 lakh shares with a face value of Rs 1 each. The company supplied construction and infrastructure equipment and received SEBI’s approval to go ahead with its issue.