FabIndia, Aether Industries, 5 others get Sebi nod to float IPOs

Seven companies, including lifestyle retail brand FabIndia and specialty chemical company Aether Industries, have received capital markets regulator Sebi's go-ahead to raise funds through initial share sales.

Syrma SGS Technology, Asianet Satellite Communications, Sanathan Textiles, Capillary Technologies India and Harsha Engineers International too received the watchdog's nod to float Initial Public Offerings (IPOs).

These companies, which filed their preliminary IPO papers with Sebi during December 2021 and February 2022, obtained observations during April 27-30, an update with the regulator showed on Monday.

In Sebi's parlance, its observation implies the company concerned has received the approval to launch the IPO.

Backed by billionaire Azim Premji’s PremjiInvest, FabIndia has filed documents for an IPO which includes fresh issue of shares worth up to ₹500 crore and an Offer For Sale (OFS) of up to 2,50,50,543 shares. The company's promoters also plan to gift more than 7 lakh shares to artisans and farmers.

Proceeds from the fresh issue of shares will be utilised for voluntary redemption of the company's NCDs (Non Convertible Debentures), pre-payment or scheduled re-payment of a portion of certain outstanding borrowings and general corporate purposes.

Meanwhile, Aether Industries' ₹1,000 crore IPO consists of a fresh issue of equity shares aggregating to ₹757 crore and an OFS of up to 2,751,000 equity shares.

The company may also consider raising ₹131 crore by issuing equity shares through a preferential offer.

Aether Industries is a speciality chemicals manufacturer in India focused on producing advanced intermediates and speciality chemicals involving complex and differentiated chemistry and technology core competencies.

It started with a research and development (R&D) unit in 2013, and began commercial production in 2017. It caters to the pharmaceutical, agrochemical, material science, electronic chemical, high performance photography and oil and gas industry segments.

Leading internet service provider Asianet Satellite Communications plans to raise ₹765 crore through the initial share sale.

The IPO consists of a fresh issue of equity shares aggregating to ₹300 crore, and an offer for sale of up to ₹465 crore by Hathway Investments.

Electronic manufacturing services firm Syrma SGS Technology's IPO comprises fresh issue of shares worth ₹926 crore, and an OFS of up to 33.69 lakh equity shares by Veena Kumari Tandon.

The company may also consider raising ₹180 crore via a pre-IPO placement before filing its Red Herring Prospectus and, if that happens, the issue size will be altered accordingly.

As per the market sources, the company is looking to garner between ₹1,000 core and ₹1,200 crore.

The IPO of yarn manufacturer Sanathan Textiles comprises fresh issue of equity shares aggregating up to ₹500 crore and an OFS of up to 1.14 crore equity shares by Dattani Family.

The company may consider a pre-IPO placement of equity shares aggregating up to ₹100 crore.

According to the market sources, the issue size will be in the range of ₹1,200-1,300 crore.

Capillary Technologies (India) Ltd, backed by Warburg Pincus and Sequoia Capital, is looking to raise ₹850 crore through the initial share sale.

The company offers Artificial Intelligence (AI)-based cloud-native Software-as-a Solution (SaaS) products and solutions to develop loyalty of their consumers and channel partners.

The IPO consists of a fresh issue of equity shares aggregating to ₹200 crore and an OFS of ₹650 crore by Capillary Technologies International Pte Ltd.

Also, the company may consider a pre-IPO placement aggregating up to ₹20 crore. If such placement is completed, the fresh issue size will be reduced.

Harsha Engineers International, manufacturer of precision bearing cages, plans to raise ₹755 crore through its IPO.

The public issue consists of a fresh issue of equity shares aggregating to ₹455 crore, and an OFS of up to ₹300 crore by existing shareholders.

The equity shares of these seven companies will be listed on the BSE and NSE. PTI SP RAM