John Energy, backed by ace investor Rakesh Jhunjhunwala, has received markets regulator Sebi’s go-ahead to raise an estimated Rs 350 crore through an initial public offering. The company had filed draft papers with Securities and Exchange Board of India (Sebi) in February and obtained its “observations” on August 27, as per the latest update with the regulator.
Sebi’s observations are necessary for any company planning to launch public issue like initial public offer (IPO) and follow-on public offer (FPO). Going by the draft papers, John Energy’s IPO comprises fresh issuance of shares worth Rs 218 crore and an offer for sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company.
Proceeds of the issue will be utilised towards repayment of certain borrowings availed by the company and for other general corporate purposes. According to merchant banking sources, the initial share-sale is expected to fetch Rs 350 crore. Established in 1987, John Energy is a leading Indian company catering to the upstream and mid stream oil and gas industry.
Jhunjhunwala has 18.21 per cent stake in the company, while ICICI Bank owns 4.47 per cent holding in the firm. IDFC and Keynote Corporate Services will manage the company’s public issue. The equity shares are proposed to be listed on BSE and the National Stock Exchange (NSE).
In 2016-17, John Energy reported a consolidated revenue of Rs 582 crore, compared to Rs 565 crore in the previous year. Besides, the firm posted a profit after tax of over Rs 71 crore in 2016-17 against Rs 29 crore in the preceding fiscal.