Upcoming IPO: IPO is important news for investors. Market regulator SEBI has approved the IPO of 6 companies. These include iValue Infosolutions, Ather Energy, Oswal Pumps, Quality Power Electrical Equipments, Fabtech Technologies and Schloss Bangalore. SEBI has issued observation letter on the draft papers of iValue Infosolutions and Ather Energy on 23 December. Whereas, this letter was issued to Oswal Pumps on 24th December.
Additionally, observation letters were issued on the IPO papers of Quality Power Electrical Equipments and Fabtech Technologies on December 27 and on the IPO papers of Schloss Bangalore on December 26. After issuing the observation letter, the company is required to launch an IPO within the next one year.
The Bengaluru-based technology solutions company has filed draft papers with SEBI on September 5 this year. There is no fresh issue component and the IPO will involve sale of 1.87 crore equity shares by existing shareholders through OFS. Promoters hold 38.67 per cent stake in iValue and 61.33 per cent shares are owned by public shareholders including Sundara (Mauritius).
The electric two-wheeler company had filed draft papers on September 9 with the intention of raising funds for setting up an E2W factory in Maharashtra and reducing debt. Fresh equity shares worth Rs 3100 crore will be issued in the IPO. At the same time, 2.2 crore equity shares will be sold by promoters and investors through OFS.
According to a Moneycontrol report in September, the size of the IPO could be around Rs 4500 crore. If the IPO is launched, Ather Energy will be the second company to be listed on the stock market after its competitor Ola Electric Mobility.
Promoters Tarun Sanjay Mehta and Swapnil Babanlal Jain will sell 10 lakh shares each, while the remaining shares will be sold by investors like Caladium Investment, National Investment and Infrastructure Fund, Internet Fund, 3State Ventures, IITM Incubation Cell and IITMS Rural Technology.
The Haryana-based company, which manufactures solar-powered and grid-connected submersible and monoblock pumps and electric motors, had filed a draft red herring prospectus with SEBI for its IPO on September 17. In this, new equity shares worth Rs 1000 crore will be issued and OFS of 1.13 crore equity shares will be done by promoter Vivek Gupta.
The company, which provides turnkey solar pumping systems, will use the proceeds from the fresh issue for capex and setting up new manufacturing units in Karnal, Haryana. Additionally, it will repay the debt through IPO funds and the remaining amount will be used for general corporate purposes.
Quality Power Electrical Equipments IPO
The high voltage electrical equipment and solutions provider had filed draft papers with SEBI on September 16. The company is 100 percent owned by the Pandian family. New shares worth Rs 225 crore will be issued in the IPO of Quality Power Electrical Equipments. Additionally, 1.2 crore equity shares will be sold through OFS by promoter Chitra Pandian.
Fabtech Technologies had filed papers with SEBI for its IPO on September 14 this year. The company provides turnkey engineering solutions for the pharmaceuticals, biotech and healthcare industries. 1.20 crore fresh shares will be issued in this IPO. It may raise up to Rs 10 crore through a pre-IPO round before filing the red herring prospectus with the Registrar of Companies.
The company intends to use the IPO proceeds to meet its working capital needs, inorganic growth initiatives through acquisitions and for general corporate purposes.
Schloss Bangalore had filed its IPO papers on September 20 this year to raise Rs 5000 crore. This is the biggest public issue among these six companies. The company operates palaces, hotels and resorts under The Leela brand.
The luxury hospitality chain plans to raise Rs 3,000 crore through a fresh issue and Rs 2,000 crore through offer-for-sale. Promoter Project Ballot Bangalore Holdings (DIFC) is the selling shareholder in the offer-for-sale. It may consider a preferential offer of pre-IPO round of Rs 600 crore.
Schloss Bangalore will compete with listed peers like Indian Hotels, EIH, Charlotte Hotels and Juniper Hotels. The company will use Rs 2700 crore from the fresh issue proceeds to repay the debt. The remaining fresh issue funds will be used for general corporate purposes, while the offer-for-sale proceeds will go to the promoter.
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