Capital market regulator SEBI has issued fresh observations to IPO applications of 4 companies while 1 application has been kept in abeyance. The successful companies include Akums Drugs, Gold Plus Glass, Ceigall India and Orient Technologies.
Akums Drugs and Pharmaceuticals – India’s largest contract-manufacturing pharmaceutical company – operates across four verticals i.e. Pharmaceuticals, API, Nutraceutical, and Cosmetics & Derma. It plans to raise over INR 680 crore through the fresh issue and constitutes an offer for sale (OFS) of 18.6 million shares by promoters Sanjeev Jain and Sandeep Jain, and existing investor Ruby QC Investment Holdings.
Gold Plus Glass – India’s second-largest float glass manufacturer – also received regulatory approval to launch its public offer. Premji Invest-backed company plans to raise INR 500 crore through the fresh issuance and an OFS of 15.7 million shares. Apart from Premji Invest, Gold Plus Glass counts Kotak Special Situations Fund among its investors.
The company’s product portfolio includes clear glass, along with 28 varieties of value-added glass products and 11 types of processed glass products. Gold Plus Glass boasts of 22% market share in manufacturing capacity and caters to automotive, construction, and industrial sectors.
Ludhiana-based infrastructure firm Ceigall India also received SEBI nod for share sale. The company aims to raise INR 618 crore through fresh issuance while 14.3 million equity shares are planned to be sold under OFS by promoters and investors. Ceigall India undertakes specialises in construction of elevated roads, flyovers, bridges, railway over bridges, tunnels, highways, expressways, and runways and gets majority of its revenues from NHAI.
IT solutions provider Orient Technologies’ public offer comprises of a fresh issuance worth INR 120 crore and an OFS of up to 4.6 million shares by promoters. The company specialises in IT Infrastructure, IT Enabled Services (IteS), and Cloud and Data Management Services.
SK Finance IPO in Abeyance
Meanwhile, SEBI has put the application of Jaipur-based lender SK Finance in abeyance without citing any reason. A regulatory update on SEBI website stated that the “issuance of observations (has been) kept in abeyance”. SK Finance IPO planned to mobilize INR 2,200 crore through a mix of sale of fresh shares and an offer for sale (OFS) by existing shareholders.
The company focuses on providing vehicle finance and SME loans and is backed by private equity investors including Norwest Venture Partners, TPG, Evolvence Coinvest. Earlier this year, SK Finance had raised INR 1,328 crore from investors. Motilal Oswal Private Equity invested INR 415 crore for a minority stake in the NBFC.
According to IPO Central’s SEBI approval tracker, 21 companies have secured SEBI’s regulatory approval. India’s IPO market is red hot with 38 listings so far this year. Meanwhile, investors are also enjoying the bull run in primary market offers as these IPOs have delivered average listing pop of 27.5%. Current returns on these stocks from IPO levels are even more impressive with average of 43.1%.
