Six companies, including Canara Robeco Asset Management Company and Hero Motors, have received approval from SEBI to proceed with their initial public offerings (IPOs), as per an update from the market regulator on Monday.
Emmvee Photovoltaic Power, a manufacturer of solar equipment, fintech leader Pine Labs, banking and smart card producer Manipal Payment and Identity Solutions, and Orkla India, the parent company of MTR Foods, have also been granted permission to launch IPOs.
These approvals followed the submission of their preliminary papers to Sebi between April and July, with regulatory observations obtained during September 2-12.
In regulatory language, SEBI’s observations signify clearance to initiate a public offering.
According to merchant bankers, the combined IPOs from these six firms are anticipated to raise at least ₹9,000 crore, as reported by PTI.
IPO details
Canara Robeco AMC has announced a 4.98 crore equity share IPO, which is structured entirely as an offer-for-sale (OFS) by its promoters, Canara Bank and ORIX Corporation Europe NV.
As part of the OFS, Canara Bank will sell 2.59 crore shares, while ORIX Corporation (previously known as Robeco Groep NV) will dispose of 2.39 crore shares.
This indicates that the company will not gain any financial benefits from the IPO, as all funds will be directed to the selling shareholders.
Hero Motors is set to raise ₹1,200 crore through a combination of fresh issuance and OFS. This includes a fresh issuance of equity shares valued at ₹800 crore and an OFS worth ₹400 crore from its promoters.
Within the OFS, O P Munjal Holdings will sell shares estimated at ₹390 crore, while both Bhagyoday Investments and Hero Cycles will divest shares valued at ₹5 crore each.
Proceeds from the fresh issuance will partially be used to repay ₹285 crore in debt and fund ₹237 crore for equipment purchases aimed at expanding capacity at its facility in Gautam Buddha Nagar, Uttar Pradesh.
Emmvee Photovoltaic Power is aiming for a significantly larger issue size of ₹3,000 crore. This consists of a fresh issue amounting to ₹2,143.86 crore and an OFS of ₹856.14 crore from its promoters.
A considerable part of the fresh proceeds, totaling ₹1,607.90 crore, is allocated for repaying or prepaying loans and interest at both the company and its key subsidiary, with the remaining funds designated for general corporate uses.
The fintech giant Pine Labs, which is backed by Temasek and Peak XV Partners, will feature a fresh equity share issuance of ₹2,600 crore along with an OFS that includes over 14.78 crore shares from investor shareholders.
Among those reducing their stakes are Peak XV Partners, Actis, PayPal, Mastercard Asia/Pacific, Temasek (through Macritchie Investments), Invesco, Madison India Capital, MW XO Digital Finance Fund Holdco, Lone Cascade LP, and co-founder Lokvir Kapoor.
Pine Labs intends to allocate ₹870 crore from the fresh issuance for debt repayment, while ₹760 crore will focus on investments in IT assets, cloud infrastructure, technology development, and the acquisition of digital checkout points.
In the meantime, Manipal Payment and Identity Solutions has submitted its draft documents to SEBI under confidentiality. As per sources, the company aims to raise approximately ₹1,200 crore.
Lastly, Orkla India, which owns the popular spice and condiment brands MTR and Eastern, is taking a completely OFS approach. Its IPO will consist of the sale of 2.28 crore equity shares by its promoters and other existing shareholders.
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