Milky Mist Dairy Food, Curefoods India, Steamhouse India, Kanodia Cement, Gaja Alternative Asset Management receive SEBI nod for IPOs
The companies had filed their preliminary papers between May and July
Five firms – dairy products maker Milky Mist Dairy Food, cloud kitchens operator Curefoods India, industrial steam and gas supplier Steamhouse India, cement manufacturing company Kanodia Cement, and Gaja Alternative Asset Management Ltd, operating under Gaja Capital, have secured the Securities and Exchange Board of India’s (SEBI’s) approval to raise funds through initial public offerings (IPO).
The consent has come at a time when the Indian market is experiencing a boom in primary market activity.
According to the draft red herring prospectus (DRHP), Tamil Nadu-based Milky Mist hopes to raise Rs.2,035 crore through its maiden public offering, comprising a fresh issue of equity shares worth Rs.1,785 crore and an offer for sale (OFS) of shares valued at Rs.250 crore by promoters.
The proceeds would be used for payment of debt, expansion and modernisation of the Perundurai manufacturing facility, which includes setting up whey protein concentrate, yoghurt, and cream cheese plants. Further, funds will be invested in deploying visi coolers, ice cream freezers, and chocolate coolers.
Bengaluru-based Curefoods, which operates CakeZone and Nomad Pizza, aims to raise Rs.800 crore through fresh issuance of shares and an OFS of 4.85 crore equity shares by existing shareholders.
The company would utilise the funds for payment of debt and expansion, including setting up new Krispy Kreme cloud kitchens, restaurants, kiosks, and central kitchens; spreading out some existing cloud kitchens through brand additions; purchasing machinery and equipment, and investment in its subsidiaries – Fan Hospitality Services and Cakezone Foodtechs.
Similarly, Steamhouse aims to raise between Rs.500 crore and Rs.700 crore. Steamhouse and Gaja Alternative filed for their maiden public offerings through confidential pre-filing routes. They opted for the confidential pre-filing route, which allows withholding public disclosure of IPO details under the DRHP until later stages. This route is gaining traction among Indian firms for flexibility in IPO plans.
Earlier this year, Gaja Capital appointed former SEBI Chairman UK Sinha as its Non-Executive Chairman.
Kanodia Cement’s proposed IPO is entirely an OFS of 1.49 crore shares by promoters and an individual shareholder, with no fresh issue component. Since the public issue is completely an OFS, the firm will not receive any funds from the issue. The entire proceeds will go to selling shareholders.
This year, 84 companies have tapped the mainboard market through maiden public offerings, and two issues, and eyewear retailer Lenskart Solutions is also lined up.