SEBI Greenlights Kross and Saraswati Saree Depot IPOs

In a significant move in the financial landscape, Kross, a trailer axle and suspension assembly manufacturer, and Saraswati Saree Depot have received the green light from the capital markets regulator SEBI to proceed with their fundraising endeavours by launching initial public offerings (IPOs).

Kross’s IPO Details

Kross initiated the process by filing draft papers on November 30, 2023, for Rs 500-crore IPO. This offering is a combination of fresh equity shares amounting to Rs 250 crore and an offer-for-sale (OFS) of shares worth Rs 250 crore by its promoters Sudhir Rai and Anita Rai.

SEBI’s Observation Letter for Kross

SEBI issued an observation letter to Kross on March 22, signifying that the company is cleared to proceed with its IPO within a year from the date of receiving the observation letter. Equirus Capital has been appointed as the sole merchant banker for Kross’s IPO.

Saraswati Saree Depot’s IPO Progress

Similarly, Saraswati Saree Depot, a Maharashtra-based saree wholesaler, secured an observation letter from the regulator on March 27 this year. The company’s IPO entails a fresh issue of 72.45 lakh equity shares and an OFS of 35.55 lakh equity shares by its promoters.

Promoters Tejas Dulhani, Amar Dulhani, Shevakram Dulhani, Sujandas Dulhani, Tushar Dulhani, and Nikhil Dulhani are the selling shareholders in Saraswati Saree Depot’s OFS. Unistone Capital is serving as the book-running lead manager for the public issue.

Rejected Draft Papers

On the flip side, SEBI returned draft papers filed by Polymatech Electronics and Garuda Construction & Engineering on March 28 and March 27, respectively.

Polymatech Electronics, a Tamil Nadu-based semiconductor chips manufacturer, had filed draft papers on September 29 last year, aiming to raise Rs 750 crore through an IPO. Garuda Construction & Engineering IPO papers, filed on February 19 this year, proposed raising funds via a fresh issue of 1.83 crore equity shares and an OFS of 95 lakh shares. PKH Ventures was the selling shareholder in the OFS.

Conclusion

The approval from SEBI for Kross and Saraswati Saree Depot to proceed with their IPOs marks a significant milestone in their fundraising journey. While these companies gear up to tap into the capital markets, the rejection of draft papers for other firms indicates the rigorous scrutiny and criteria set forth by regulatory authorities in ensuring investor protection and market integrity.

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.