Three More Companies Gets SEBI’s Nod For Their IPOs

According to the official website of the Securities and Exchange Board of India (SEBI), the market regulator has issued observation letters to three companies on 16 February 2022 and 17 February 2022.

Read along to know about those companies and their public offerings!

A Closer Look into the Filing and Approval Process

Market regulator SEBI has approved the draft red herring prospectus (DRHP) of three more companies providing strong momentum to the country’s IPO scene. The names of these companies are Wellness Forever Medicare Ltd., API Holdings Ltd., which is the parent company of online pharmacy PharmEasy, and CMR Green Technologies Ltd. The observation letters denote that these companies can proceed to float their IPOs.

Know More About the IPO of API Holdings Ltd.

API Holdings Ltd. filed its draft papers with SEBI back in November 2021. This was carried on the back of many listings and IPOs of companies like PolicyBazaar, Zomato, and Paytm.

This company plans to float an initial sale of shares amounting to Rs. 6,250 crores. API holdings will utilise Rs. 1,929 crores from the total proceeds of this public offering to pay off or prepay its borrowings. In addition, Rs. 1,259 crores from the amount raised will be dedicated to funding organic growth initiatives. Finally, API Holdings Ltd. will utilise Rs. 1,500 crores from the entire proceeds of this public issue on inorganic growth opportunities by taking strategic initiatives and carrying acquisitions.

This company is even considering a private placement of up to Rs. 1,250 crores ahead of its public issue. Consequently, if the company successfully carries out such an arrangement, the size of the fresh issue part of this IPO will get reduced.

A Quick Glance into the IPO of Wellness Forever Medicare Ltd.

Wellness Forever Medicare Ltd. is an Omni channel retail pharmacy chain with stores in several key cities and towns of Goa, Karnataka, and Maharashtra. According to this company’s draft prospectus, its leading shareholder Serum Institute of India is selling most of its stake in it. Wellness Forever Medicare Ltd. plans to mop up around Rs. 1,500 to 1,600 crores through this IPO.

This initial public offering will consist of freshly issued equity shares totaling up to Rs. 400 crores and an offer for sale of up to 1,60,44,709 equity shares. The table below shows the break-up of the OFS in this IPO.

Recently, the company has nominated three new directors, namely Ranjit Shahani, Avani Davda, and Kewal Handa. All of them come with extensive experience in the healthcare, banking, and retail sectors.

Further Details Regarding the IPO of CMR Green Technologies Ltd.

CMR Green Technologies Ltd. is one of the leading metal recyclers in this nation. This company filed its DRHP with market regulator SEBI back in September 2021. This initial public offering will include freshly issued equity shares worth Rs. 300 crores. Alongside, there will be an offer for sale of 3,34,14,138 equity shares by the company’s existing investors and promoters. The company will use the proceeds from this initial share sale to pay debts and for general corporate purposes.

The break up of the OFS as per the company’s draft papers is shown in the table below.

Bottom Line

Analysts expect this country’s IPO scene to continue as more and more companies get approval from market regulator SEBI to float their public issues. This gives enough scope for companies like API Holdings Ltd., CMR Green Technologies Ltd., and Wellness Forever Medicare to expand and grow in operations. However, interested investors should always analyse other parameters and conduct a thorough study of the company’s financials and vision before investing.

Keep your eyes on our blogs section for more news and updates on IPOs and the stock market.

Frequently Asked Questions

1. How many observation letters are yet to be issued by SEBI?

SEBI is yet to issue observation letters for 44 more companies waiting to float their IPOs.

2. When was CMR Green Technologies Ltd. founded?

CMR Green Technologies Ltd. was founded in the year of 2005.

3. How much growth does Wellness Forever Medicare expect?

After their emergence in the e-commerce pharmacy segment, Wellness Forever Medicare expects to experience a 45% upward shift in their CAGR (compound annual growth rate).

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.