Sebi's observation is very necessary for any company to launch an initial public offer (IPO), follow-on public offer (FPO) and rights issue. Speciality chemical manufacturer Clean Science and Technology plans to raise Rs 1,400 crore through its initial share sale.
Three companies — Clean Science and Technology, Shriram Properties and GR Infraprojects — have received markets regulator Sebi’s to raise funds through initial public offers (IPOs). The three firms had filed their preliminary papers with Securities and Exchange Board of India (Sebi) in April. Clean Science and Technology, Shriram Properties and GR Infraprojects have obtained Sebi’s observations on June 12, June 15 and June 16 respectively, according to an update with Sebi.
Sebi’s observation is very necessary for any company to launch an initial public offer (IPO), follow-on public offer (FPO) and rights issue. Speciality chemical manufacturer Clean Science and Technology plans to raise Rs 1,400 crore through its initial share sale.
The IPO is entirely an offer for sale (OFS) by existing promoters and other shareholders, according to draft red herring prospectus. Those offering shares in the OFS include Anantroop Financial Advisory Services, Ashok Ramnarayan Boob, Krishnakumar Ramnarayan Boob, Siddhartha Ashok Sikchi, and Parth Ashok Maheshwari.
Clean Science Technology manufactures functionally critical specialty chemicals such as performance chemicals, pharmaceutical intermediates and FMCG chemicals. Its products are used as key starting level materials, as inhibitors, or as additives, by customers, for products. Bengaluru-based Shriram Properties proposes to raise up to Rs 800 crore through IPO. Out of the total IPO size, it plans to raise Rs 250 crore through fresh issue of equity shares and Rs 550 crore through offer for sale.
Shriram Properties has proposed partial exits to its four existing investors –TPG Capital, Tata Capital, Walton Street Capital and Starwood Capital — which hold around 58 per cent stake in the company.
In offer for sale, each of the selling shareholders will be entitled to their respective portion of the proceeds from the offer for sale in proportion of the shares offered by them. The company will not receive any proceeds from the offer for sale. Shriram Properties proposes to utilise the net proceeds from the fresh issue towards repayment and/ or pre-payment of debt and general corporate purposes. The company has a major presence in South India. It has completed various real estate projects and many projects are under construction. GR Infraprojects plans to raise Rs 800-1,000 crore through an initial share sale, according to merchant banking sources.
The public issue will be a complete OFS of 1,15,08,704 equity shares by promoter and investor selling shareholders, according to the draft red herring prospectus. The offer includes an employee reservation portion as well. Those offering shares in the OFS include Lokesh Builders, Jasamrit Premises, Jasamrit Fashions, Jasamrit Creations, Jasamrit Construction and India Business Excellence Fund.
Udaipur-based GR Infraprojects is a leading integrated road engineering, procurement and construction (EPC) company with experience in the design and construction of various road and highway projects across 15 states in India. It has recently diversified into projects in the railway sector. The equity shares of these companies are proposed to be listed on BSE and NSE.