The Securities and Exchange Board of India (SEBI) has approved the initial public offerings (IPOs) of eight companies, including defence equipment manufacturer SMPP Ltd, Aditya Infotech Ltd, Brigade Hotel Ventures Ltd, Kumar Arch Tech Ltd, Solarworld Energy Solutions Ltd, Indogulf Cropsciences Ltd, Globe Civil Projects Ltd, and Prostarm Info Systems Ltd.
Together, these companies plan to raise over ₹7,800 crore through their public offerings, with their shares set to be listed on both the BSE and NSE. Notably, auto component maker Viney Corp. withdrew its draft IPO papers on January 27 without providing a reason.
SMPP Ltd’s ₹4,000 crore IPO consists of a fresh issue of ₹580 crore and an offer-for-sale (OFS) of ₹3,420 crore by its promoter, Shiv Chand Kansal, who currently holds a 50% stake in the company.
The funds from the fresh issue will primarily be used for capital expenditure of ₹437.04 crore, which includes building construction, land development, and procurement of machinery for an ammunition manufacturing facility via a subsidiary. The remaining funds will be allocated for general corporate purposes.
Aditya Infotech’s IPO includes a fresh issue of ₹500 crore and an OFS of ₹800 crore by promoters. Of the fresh issue proceeds, ₹375 crore will be used to repay debt, while the remaining funds will be utilised for general corporate purposes.
Brigade Hotel Ventures aims to raise ₹900 crore through a fresh issue of shares. The proceeds will be used for debt repayment (₹481 crore), funding for the company (₹412 crore) and its subsidiary SRP Prosperita Hotel Ventures Ltd. (₹69 crore).
Additionally, ₹107.52 crore will be spent on purchasing an undivided share of land from the promoter, BEL, while the remaining funds will be used for acquisitions and strategic initiatives.
Kumar Arch Tech’s IPO comprises a fresh issue of ₹240 crore and an OFS of ₹500 crore by promoters. The company plans to invest ₹182.09 crore in its subsidiary, Taylias Industry Pvt., to finance capital expenditure for a greenfield project.
The IPO of Solarworld Energy Solutions consists of a fresh issue of ₹550 crore and an OFS of ₹50 crore.
Indogulf Cropsciences seeks to raise ₹200 crore through a fresh issue of shares, alongside an OFS of up to 38.55 lakh shares by selling shareholders. If the placement is completed, the fresh issue size will be reduced. The Delhi-based firm plans to utilise proceeds for working capital, debt repayment, setting up a dry flowable plant in Haryana, and general corporate purposes.
Globe Civil Projects’ IPO is a fresh issue of 1.9 crore equity shares with no OFS. The proceeds will be allocated for working capital, equipment purchases, and general corporate expenses.
Prostarm Info Systems’ IPO will be a fresh issue of 1.6 crore shares. The Maharashtra-based power solutions firm plans to use the funds for working capital, debt repayment, acquiring a further stake in a subsidiary to make it wholly owned, inorganic growth, and general corporate purposes.
SEBI’s approval of these 8 IPOs highlights the increasing activity in India’s primary markets. With these firms collectively targeting over ₹7,800 crore
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Feb 5, 2025, 3:34 PM IST
Team Angel One
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