The Indian capital markets have witnessed a surge in initial public offerings (IPOs) this year, leading to market participants working overtime. This includes SEBI as well which has been bombarded with IPO applications. So far in September, 10 IPO applications have been filed on top of 16 submitted in August. Thankfully, SEBI is not behind and has issued IPO approvals to 5 companies in its latest set of observations. These five companies added to the IPO pipeline are Godavari Biorefineries, Quadrant Future Tek, Enviro Infra Engineers, Afcons Infrastructure, and Shivalik Engineering Industries. Know more about each company, its business model, IPO size, and what makes them interesting.
Godavari Biorefineries
Godavari Biorefineries Limited, established in 1956 and based in Mumbai, is a leading player in the bio-refinery sector. The company specializes in producing bio-based chemicals, sugar, ethanol, and power. With a diverse product portfolio serving industries such as agrochemicals and pharmaceuticals, Godavari has expanded its operations globally to over 20 countries.
The company plans to raise approximately INR 370 crore through its IPO, which includes a fresh issue of INR 325 crore and an offer for sale of about 65.26 lakh equity shares. The proceeds will primarily be allocated for repaying debts amounting to INR 240 crore and for general corporate purposes. Mandala Capital AG is a significant private equity investor involved in this offering.
With its extensive experience and established market presence, Godavari Biorefineries is well-positioned to capitalize on the growing demand for bio-based products. The company’s focus on research and development further enhances its competitive edge in the evolving bio-refinery landscape.
Quadrant Future Tek
The company is dedicated to research specializing in the advancement of train control and signaling systems for the railway industry with a focus on improving safety and dependability for passengers as their goal. They also offer custom cables tailored for sectors such, as naval and solar applications.
The company aims to raise INR 275 crore from its IPO by issuing shares exclusively for this purpose. The raised funds will be allocated for operational needs in the long term new investments in creating an electronic interlocking system and general business requirements. Quadrant Future Tek’s emphasis on technology oriented solutions gives it an edge, in the infrastructure industry.
With the government focusing on improving infrastructure and the projected expansion of rail transportation services in the future. Quadrant Future Tek is likely to see gains, from these developments. Their strong financial performance and strategic actions point towards a promising future following their IPO.
Enviro Infra Engineers
Enviro Infra Engineers is known for its expertise in creating solutions for sewage treatment facilities and sewer systems. They have established themselves as experts in designing and managing water treatment facilities, for government entities.
The planned IPO is set to raise INR 181 crore by issuing 4.42 crore new equity shares and selling off 52.68 lakh shares owned by the promoters. It aims to utilize the funds for fulfilling operational needs settling debts and supporting the construction of a fresh sewage treatment facility, in Mathura.
In the face of growing urbanization and strict government rules on waste disposal practices, Enviro Infra Engineers is set for expansion. Their proficiency in zero liquid discharge technology establishes them as a frontrunner, in eco water management solutions.
Afcons Infrastructure – Biggest of the recent IPO approvals
Afcons Infrastructure Limited is part of the Shapoorji Pallonji Group and operates across various sectors including marine projects, urban infrastructure, hydro projects, and oil & gas. The company has built a strong order book valued at approximately INR 34,888 crore as of September 2023.
The IPO seeks to raise INR 7,000 crore through a mix of fresh issues worth INR 1,250 crore and an offer for sale of up to INR 5,750 crore by promoters. Proceeds from the fresh issue will be utilized for capital expenditures related to construction equipment purchases and repayment of borrowings.
Given Afcons’ strong financial performance—reporting a revenue increase of 14.69% year-on-year—the outlook remains positive as it continues to secure significant contracts across various infrastructure projects in India.
Shivalik Engineering Industries
The company focuses on precision engineering and manufacturing casting components for sectors such as agriculture, railways, automotive, and off-highway industries. This IPO approval player was established in 2007 and offers end-to-end solutions from design to assembly.
Shivalik Engineering plans to raise INR 335 crore through its IPO comprising both fresh issue and an offer for sale of up to 41.3 lakh shares by existing shareholders. The funds will be allocated towards setting up a solar plant, expanding their foundry operations, and general corporate purposes.
With a reported revenue increase of 65% year-on-year to INR 666.2 crore in FY23 and strong growth prospects driven by rising demand across multiple sectors, Shivalik Engineering Industries presents an attractive investment opportunity post-IPO.
Conclusion
The recent IPO approvals by SEBI reflect the growing confidence in India’s capital markets as well as the potential for companies operating across diverse sectors such as bio-refining, infrastructure development, water management solutions, precision engineering, and more. As these companies prepare to enter the public domain with their respective offerings, investors are keenly watching their progress and future prospects amidst India’s economic growth trajectory.
