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Ajay Poly, Laxmi India Finance, and Veritas Finance were among the five businesses that received regulatory approval from SEBI earlier this week to raise money through initial public offerings (IPOs). Additionally, Rajasthan-based Jajoo Rashmi Refractories and Kolkata-based Regaal Resources received the green light to float IPOs. Veritas Finance aims to raise INR 2,800 crore, comprising a fresh issue worth INR 600 crore and an Offer-for-Sale (OFS) of INR 2,200 crore by key investors. Laxmi India Finance, Ajay Poly, Regaal Resources, and Jajoo Rashmi Refractories have outlined specific plans for fund utilisation, ranging from debt repayment to expanding manufacturing capacities. Meanwhile, Earthood Services withdrew its draft IPO documents.
According to a regulatory update, five companies were approved by the Securities and Exchange Board of India (SEBI) earlier this week to move forward with initial public offerings (IPOs). The approved entities include Veritas Finance, Laxmi India Finance, Ajay Poly, Jajoo Rashmi Refractories, and Regaal Resources. These companies, which had submitted their draft IPO papers to SEBI in December and January, received regulatory observations during the past week. Advertisement
In SEBI's regulatory framework, receiving observations signifies clearance to launch a public issue.
Veritas Finance is set to raise INR 2,800 crore through its IPO, comprising a fresh issue of equity shares worth INR 600 crore and an OFS of INR 2,200 crore by investors and individual shareholders, as per the draft red herring prospectus (DRHP). The OFS will include divestments of INR 550 crore each by Norwest Venture Partners X - Mauritius and Kedaara Capital Fund II LLP, INR 500 crore by British International Investment plc, INR 425 crore by Lok Capital Growth Fund, and INR 75 crore by Growth Catalyst Partners LLC. Additionally, individual shareholders will also be divesting stakes. The retail-focused non-deposit taking NBFC intends to use the net proceeds to bolster its capital base to meet future business requirements, particularly for onward lending.
Laxmi India Finance's proposed IPO will consist of a fresh issue of 1.04 crore shares and an OFS of 56.38 lakh shares by promoters. The proceeds from the fresh issue are earmarked for strengthening the company's capital base for future lending and general corporate purposes.
Ajay Poly, a manufacturer of refrigeration sealing solutions, plans to raise funds through a combination of a fresh issue of shares up to INR 238 crore and an OFS of up to 93 lakh equity shares by promoters. The company intends to allocate the proceeds towards debt repayment, capital expenditure for equipment procurement at its Noida, Karegaon, Shirwal, Chennai, and registered offices, and general corporate purposes.
Kolkata-based Regaal Resources' IPO will include a fresh issue of shares valued at INR 190 crore and an OFS of nine million equity shares by the promoter. The fresh issue proceeds of INR 147 crore will primarily be utilised for debt repayment and general corporate purposes.
Jajoo Rashmi Refractories, based in Rajasthan, plans to raise INR 150 crore exclusively through a fresh issue, with no OFS component. The funds are allocated for establishing new manufacturing facilities for ferro alloys at Bokaro, Jharkhand, supporting working capital requirements, and general corporate purposes.
Meanwhile, Earthood Services, which had submitted its draft IPO documents to SEBI in January, withdrew its filing earlier this week, according to regulatory data.
The diverse use of proceeds across debt repayment, capital expansion, and working capital support underlines the strategic approaches of these companies in leveraging the IPO route for growth. As more companies gear up to tap the capital markets, investor interest will likely hinge on sectoral outlooks and underlying business fundamentals.
Source - PTI
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