SEBI Gave Green Light to Sai Life Sciences, Rubicon Research, Metalman Auto, and Sanathan Textiles to Float IPO

Sai Life Sciences, Rubicon Research, Metalman Auto, and Sanathan Textiles have received approval from the Securities and Exchange Board of India (SEBI) to proceed with their Initial Public Offering (IPO) plans. SEBI issued observation letters to all four companies on October 31, marking the green light for their public offerings. In SEBI’s terminology, the receipt of an observation letter means that the companies have one year to launch their IPOs.

Sai Life Sciences IPO Details

Sai Life Sciences, backed by private equity firm TPG, filed its preliminary IPO papers on July 29, 2024. The company plans to raise funds through a combination of a fresh issuance of equity shares worth Rs 800 crore and an offer-for-sale of 6.15 crore shares by shareholders, including TPG Asia, HBM Private Equity India, and promoter Sai Quest Syn. 

Sai Life is a contract research, development, and manufacturing organization that serves global pharmaceutical and biotechnology companies. The company intends to use Rs 600 crore from the fresh issue proceeds to repay debt, with the remainder earmarked for general corporate purposes. Kotak Mahindra Capital Company, IIFL Securities, Jefferies India, and Morgan Stanley India Company are the lead managers for this public issue.

Metalman Auto’s IPO Plans

Metalman Auto, a New Delhi-based manufacturer specializing in sheet metal, tubular fabrication, and metal finishing for the automotive and non-automotive sectors, filed its draft papers with SEBI on August 12, 2024. The company aims to raise Rs 350 crore through a fresh issue, alongside an offer-for-sale of 1.26 crore equity shares by its promoters. The funds raised from the fresh issue will be used for procuring plant and machinery at its Pithampur manufacturing unit, repaying debt, and for general corporate purposes. Axis Capital, ICICI Securities, and Motilal Oswal Investment Advisors are managing the public offering.

Rubicon Research’s IPO Offerings

Rubicon Research, a Maharashtra-based pharmaceutical formulations company, is seeking to raise Rs 1,085 crore through its IPO. The offering will consist of a fresh issue of Rs 500 crore, along with an offer-for-sale of Rs 585 crore from promoter General Atlantic Singapore RR Pte. Rubicon, which competes with major players in the Indian pharma industry, plans to use Rs 310 crore of the fresh issue proceeds to repay debt. The remaining funds will be allocated towards inorganic growth via acquisitions and other strategic initiatives. Axis Capital, IIFL Securities, JM Financial, and SBI Capital Markets are the book running lead managers for Rubicon’s IPO.

Sanathan Textiles’ IPO Plans

Sanathan Textiles, a Mumbai-based manufacturer of yarn products, filed its IPO papers for the third time on August 20, 2024. The company’s IPO will include a fresh issue of Rs 500 crore and an offer-for-sale of Rs 300 crore by the promoters. Sanathan Textiles intends to utilize Rs 375 crore from the fresh issue proceeds to repay debt, with the balance being allocated for general corporate purposes. DAM Capital Advisors and ICICI Securities are acting as the merchant bankers for this issue.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.