SEBI approves IPOs of Meesho, Shiprocket, German Green Steel, Allied Engineering, Skyways Air, Rajputana Stainless and Manika Plastech
The entities had filed their preliminary documents between May and July
Seven companies, Softbank-backed e-commerce firm Meesho, Temasek-backed e-commerce enablement platform Shiprocket, German Green Steel and Power, Allied Engineering Works, Skyways Air Services, Rajputana Stainless and Manika Plastech, have received approval from the Securities and Exchange Board of India (SEBI) to collectively raise Rs.7,700 crore through an initial public offering (IPO).
The approval has come when the Indian market is booming. This year, 86 companies have already tapped the mainboard market through maiden public offerings. Others, including Groww and Pine Labs, are awaiting their turn for consent.
According to the draft red herring prospectus (DRHP), Meesho’s proposed IPO comprises a fresh issue of equity shares for Rs.4,250 crore and an offer for sale (OFS) of 17.57 crore equity shares by existing shareholders. The OFS includes the sale of equity shares by some of Meesho’s early investors, including Elevation, Peak XV, Venture Highway and Y Combinator.
Meesho intends to utilise the proceeds for investment in the cloud infrastructure of Meesho Technologies Private Limited, paying salaries of existing and replacement hires for the machine learning and artificial intelligence (Al) and technology teams, marketing and brand initiatives, funding inorganic growth, and general corporate purposes.
Meanwhile, Shiprocket hopes to raise Rs.2,000-2,500 crore through the public issue.
Both Meesho and Shiprocket filed their IPO papers through a confidential pre-filing route. This allows companies to withhold public disclosure of details under the DRHP until later stages.
Gujarat-based German Green Steel and Power plans to raise funds through its maiden public offering, comprising fresh issuance of equity shares for Rs.450 crore. Besides, there will be an OFS of 20 lakh shares by promoters.
It will use the funds for a manufacturing facility in Gujarat, setting up a hybrid wind and solar power plant, and repayment of debt.
Smart energy meter manufacturer Allied Engineering aims to mobilise Rs.400 crore through the fresh issuance of shares, along with an OFS of 75 lakh shares by the promoter.
The proceeds will be used to set up manufacturing facilities and support the company’s future working capital.
Similarly, air freight forwarding and logistics company Skyways Air Services’ IPO is a mix of fresh issue of 32.92 million equity shares and OFS of 13.33 million equity shares by promoters and selling shareholders.
The company will utilize the funds to pay debt, fund incremental working capital requirements, and general corporate purposes.
The IPO of Rajputana Stainless’ will comprise a fresh issue of up to 1.46 crore equity shares and an OFS of 62.5 lakh shares by the promoter. The proceeds will be used for funding capital expenditure, debt repayment, and general corporate purposes.
The IPO of Mumbai-based Manika Plastech is a combination of fresh issuance of equity shares of Rs.115 crore and an OFS of 1.50 crore shares.
The funds have been earmarked for capital expenditure to purchase the plant and machinery and to repay the debt.