The Securities and Exchange Board of India (SEBI) has recently approved four initial public offerings (IPOs) in its latest weekly update. These latest SEBI IPO approvals mark significant milestones for the respective companies, as they aim to raise substantial funds through the capital markets. Below, we delve into the details of each company, including their business models, IPO plans, sizes, and notable investors.
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Latest SEBI IPO Approvals: Sai Life Sciences Limited
Sai Life Sciences Limited is a prominent contract research, development, and manufacturing organization (CRDMO) that specializes in offering comprehensive drug discovery and development services. The company aims to raise up to INR 800 crore through its IPO, which comprises a fresh issue of equity shares and an offer for sale (OFS) of approximately 6.16 crore shares by its promoters and existing shareholders. Notable investors participating in the OFS include TPG Asia VII SF, HBM Private Equity India, and various individual stakeholders.
The funds raised from the fresh issue will primarily be allocated towards repaying outstanding borrowings amounting to INR 600 crore and for general corporate purposes. As of March 2024, Sai Life Sciences reported consolidated borrowings of INR 710.16 crore. The company boasts globally accredited manufacturing and R&D facilities, supported by a highly qualified team of over 2,125 scientific staff members. The IPO will be managed by Kotak Mahindra Capital Company Limited along with other financial institutions, with shares expected to be listed on both BSE and NSE.
Latest SEBI IPO Approvals: Rubicon Research Limited
Rubicon Research Limited is an innovative pharmaceutical company focused on formulation-oriented research and development. It has submitted its draft red herring prospectus (DRHP) to SEBI for an IPO aiming to raise INR 1,085 crore. This amount includes a fresh issue of equity shares worth INR 500 crore and an OFS of up to INR 585 crore from its promoters.
The company has established a robust portfolio with 69 approved ANDA and NDA products, out of which 55 have been commercialized. Rubicon’s strategic focus on high-value markets has resulted in impressive growth figures, with revenue increasing by approximately 117% year-on-year as of March 2024. The proceeds from the IPO are expected to be utilized for repaying debts, funding acquisitions, and general corporate purposes. The IPO will be managed by Axis Capital Limited along with other lead managers.
Latest SEBI IPO Approvals: Metalman Auto Limited
Metalman Auto Limited is a key player in the automotive components sector, specializing in sheet metal fabrication and assembly for both automotive and non-automotive applications. The company has filed for an IPO seeking to raise INR 350 crore through a combination of fresh equity shares and an OFS of up to 1.26 crore shares by its promoters.
Out of the proceeds from the fresh issue, approximately INR 240 crore will be directed towards debt repayment while INR 25 crore will fund capital expenditures for new machinery at its Pithampur manufacturing unit in Madhya Pradesh. Founded in 1986, Metalman Auto operates nine manufacturing units across five states in India and supplies components to major OEMs such as Bajaj and Hero MotoCorp. Axis Capital Limited is among the lead managers overseeing this public offering.
Latest SEBI IPO Approvals: Sanathan Textiles Limited
Sanathan Textiles is a Mumbai-based manufacturer specializing in yarn products across multiple verticals including polyester and cotton yarns. The company has refiled its DRHP with SEBI aiming to raise up to INR 800 crore through its IPO, which includes a fresh issue worth INR 500 crore alongside an OFS valued at INR 300 crore.
The funds raised from this IPO will be allocated towards repaying debts amounting to INR 175 crore and supporting long-term working capital needs for its subsidiary Sanathan Polycot. As of December 2023, Sanathan Textiles reported outstanding indebtedness of approximately INR 706.84 crore. The firm boasts a diverse product range with over 2,800 active varieties of yarn products manufactured at its Silvassa facility. DAM Capital Advisors Limited is one of the lead managers for this offering.
In summary, the latest SEBI IPO approvals highlight a diverse range of industries from pharmaceuticals to textiles and automotive components. Each company presents unique growth prospects backed by strong fundamentals and strategic plans for utilizing the capital raised through their respective public offerings. Investors will keenly watch these developments as these companies prepare to enter the public market arena.
