Jewellery retail player Senco Gold Ltd, electronic sub-systems and cable harnesses maker DCX Systems and frozen meat exporter HMA Agro Industries have received Sebi’s nod to raise funds through IPOs.
The companies, which filed their preliminary IPO (Initial Public Offering) papers with Securities and Exchange Board of India (Sebi) between March and April, obtained their observation letters during July 5-7, an update with the regulator showed on Monday.
In Sebi’s parlance, issuance of observation letter implies its nod to float IPO.
Together, the three firms are expected to mop-up Rs 1,605 crore through the initial share sales. The equity shares of the companies are proposed to be listed on both the bourses — BSE and NSE.
Going by the draft papers, Senco Gold’s Rs 525 crore-IPO will comprise fresh issue of equity shares aggregating up to Rs 325 crore and an Offer For Sale (OFS) of equity shares to the tune of Rs 200 crore by selling shareholder – SAIF Partners India IV Limited.
The company proposes to utilise Rs 240 crore of net proceeds from the fresh issue towards funding working capital requirements and rest towards general corporate purposes.
At present, Senco Gold has 127 showrooms — 70 company operated and 57 franchisee — in 89 cities and towns across 13 states in India. Some of its franchisee showrooms are located in areas other than metros and Tier-I, providing a greater reach in Tier-2 and Tier-3 locations.
The company also sells products through various online platforms. It also undertakes wholesale exports of its jewellery, primarily to Dubai, Malaysia and Singapore.
According to the Draft Red Herring Prospectus (DRHP), the Rs 600 crore-IPO of DCX Systems will consist of fresh issue of equity shares, aggregating up to Rs 500 crore, and an OFS of equity shares to the tune of up to Rs 100 crore by promoters — NCBG Holdings Inc and VNG Technology.
The company proposes to utilise the net proceeds from the fresh issue towards debt payment, funding working capital requirements, investment in its wholly-owned subsidiary Raneal Advanced Systems to fund its capital expenditure expenses and general corporate purposes.
The Bengaluru-based company is primarily engaged in system integration and manufacturing a comprehensive array of cables and wire harness assemblies, and are also involved in kitting.
Frozen meat exporter HMA Agro Industries filed preliminary papers with Sebi in March for an initial share sale worth Rs 480 crore.
The IPO will comprise fresh issue of equity shares aggregating up to Rs 150 crore and an OFS of equity shares worth up to Rs 330 crore by its promoters.
The OFS comprises offloading of up to Rs 120 crore worth shares by Wajid Ahmed and shares valued at Rs 49 crore each by Gulzar Ahmad, Mohd Mehmood Qureshi, Mohd Ashraf Qureshi and Zulfiqar Ahmad Quraishi. Besides, shares worth Rs 14 crore will be sold by Parvez Alam.
The company will use the net proceeds worth Rs 135 crore for funding working capital requirements as well as for general corporate purposes.
The Agra-based firm is among the largest exporters of frozen buffalo meat products from India. Its products are exported to over 40 countries all over the globe. More than 90 per cent of its sales comes from exports.