Noida-based India Exposition Mart has received capital market regulator SEBI’s approval to raise funds through an initial public offering (IPO). The public issue comprises fresh issue of equity shares aggregating up to Rs 450 crore and an offer-for-sale (OFS) of up to 1.12 crore equity shares by existing shareholders. Up to 75 per cent of the offer will be available for allocation to qualified institutional buyers (QIBs), not more than 15% will be available for allocation to non-institutional investors (NIIs) and remaining 10 per cent will be available for retail individuals.
The offer of sale comprises up to 84.17 lakh equity shares by Vectra Investments Private Limited, up to 6 lakh equity shares by Rakesh Sharma, up to 4.71 lakh equity shares by Vivek Vikas jointly held by Asha Ahlawat, up to 3.7 lakh equity shares by MIL Vehicles & Technologies Private Limited, up to 3 lakh equity shares by Dinesh Kumar Aggarwal, up to 3 lakh equity shares by Pankaj Garg, up to 3 lakh equity shares by Overseas Carpets Limited, up to 2 lakh equity shares by Navratan Samdaria, up to 1 lakh equity shares by RS Computech Private Limited, up to 80,000 equity shares Lekhraj Maheshwari jointly held with Prakashi Devi Maheshwari and up to 72,000 equity shares by Babu Lal Dosi.
India Exposition Mart had filed the draft red herring prospectus with SEBI in March this year, and has obtained its observations letter on 16 June 2022, an update with the markets regulator showed on Monday. The stocks will be listed on BSE and NSE, both.
The sole book running lead manager to the issue is Emkay Global Financial Services, and KFin Technologies is the registrar to the issue. There are no listed companies in India that engage in a business similar to that of India Exposition Mart. The company has planned to utilise the net proceeds from the issue towards funding capital expenditure requirements for expansion of its existing infrastructure facilities by setting up of an additional guest house, multi-level car parking and high hall worth Rs 3,16.9 crore, and Rs 17 crore for the repayment or prepayment of borrowings, in full or part of all or certain borrowings for the company and for general corporate purposes.
India Exposition Mart had revenues of Rs 13.30 crore in FY21 and for six months ended September 30, 2021, stood at Rs 10.66 crore which primarily includes income from space rent for fair and exhibitions of Rs 4.78 crore and income from maintenance services of Rs 5.77 crore.