SEBI Approves IPOs Of Transrail Lighting, Belstar Microfinance, SK Finance
SEBI also put the proposed Rs 4,000-crore initial public offering of JSW Cement 'in abeyance'.
The Securities and Exchange Board of India has approved three initial public offerings of Transrail Lighting Ltd., Belstar Microfinance Ltd. and SK Finance Ltd.
Belstar Microfinance's IPO is a mix of fresh issue of equity shares worth Rs 1,000 crore and offer for sale of Rs 300 crore by investor shareholders, according to the draft papers.
As a part of the OFS, Danish asset management firm MAJ Invest aims to sell shares to the tune of Rs 175 crore, followed by Arum Holdings Ltd., which plans to sell it for Rs 97 crore and Augusta Investments Zero Pte., which plans to offload it to the tune of Rs 28 crore.
MAJ Invest had first invested in Belstar Microfinance in 2018 and again in 2022. Muthoot Finance, which is one of the promoters, holds a little over 66% stake in Belstar Microfinance. Proceeds from the fresh issue worth Rs 760 crore will be used to meet future capital requirements towards onwards lending and the remaining amount will be used for general corporate purposes. The observation letter was issued on Aug. 30.
Transrail Lighting's IPO consists of a first public issue of equity shares worth Rs 450 crore and an offer for sale of over 1 crore equity shares by a promoter, Ajanma Holdings Pvt. At present, promoters hold over 86% stake in the Mumbai-based company. Proceeds from the fresh issue worth Rs 250 crore will be used to fund incremental working capital requirements, Rs 90.9 crore to support capital expenditure, and the balance amount for general corporate purposes. The observation letter was issued on Aug. 30.
SK Finance Ltd.'s proposed IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an offer for sale of up to Rs 1,700 crore by promoters and investor shareholders.
As a part of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF Pte will offload shares worth Rs 700 crore each, Evolvence Coinvest I will divest shares to the tune of Rs 75 crore and Evolvence India Fund III Ltd will sell shares worth Rs 25 crore.
The promoters, Rajendra Kumar Setia and Rajendra Kumar Setia HUF (hindu undivided family), will offload shares aggregating to Rs 180 crore and Rs 20 crore, respectively.
The Jaipur-based firm plans to utilise proceeds from the fresh issue to increase the company’s capital for future business needs, including lending and other general corporate purposes. The observation letter was issued on Aug. 30.
SEBI had also put the proposed Rs 4,000 crore initial public offering of JSW Cement Ltd. 'in abeyance' and SEBI has not disclosed the reason behind its decision.
The proposed IPO consists of a new issue of equity shares worth Rs 2,000 crore and an OFS of Rs 2,000 crore by investor shareholders, according to the draft red herring prospectus filed with the regulator.
JSW Cement filed the preliminary IPO papers with SEBI on Aug. 16.
Under the OFS, AP Asia Opportunistic Holdings Pte. and Synergy Metals Investments Holding Ltd. will offload shares worth Rs 937.5 crore each and the State Bank of India will divest shares valued at Rs 125 crore.
According to the draft papers, proceeds from the fresh issue to the tune of Rs 800 crore will be used for partially financing the establishment of a new integrated cement unit in Nagaur, Rajasthan, while Rs 720 crore will be allocated for payment of debt and the remaining funds will be allocated for general corporate purposes.
According to its website, SEBI can keep issuance of observations in abeyance for 30 days, 45 days, 90 days or more, according to each case.
