SEBI Approves IPO Plans of Six Companies: A Comprehensive Overview
The Securities and Exchange Board of India (SEBI) has granted approval for the draft papers of six companies, paving the way for their Initial Public Offerings (IPOs). These companies include Hexaware Technologies, PMEA Solar Tech Solutions, Scoda Tubes, Ajax Engineering, All Time Plastics, and Vikran Engineering. Collectively, these public issues are expected to raise over ₹10,000 crore. However, the regulator has returned the IPO draft papers of Anand Rathi Share and Stock Brokers. Below is a detailed analysis of the IPO plans of each company.
Hexaware Technologies IPO
Hexaware Technologies, a global digital and technology services firm, plans to raise ₹9,950 crore through its IPO. This offering will be an entirely Offer for Sale (OFS) by CA Magnum Holdings, an affiliate of the Carlyle Group, which holds a 95.03% stake in the company.
Hexaware, delisted in 2020, specializes in AI-driven solutions and services such as design, data, AI, and cloud technologies. For the six months ending June 2024, Hexaware reported:
- Revenue: ₹5,684 crore
- Net Profit: ₹553 crore
If successful, this IPO will be the largest in India’s IT services sector since Tata Consultancy Services (TCS) went public over two decades ago. Hexaware initially listed on the Indian bourses on June 14, 2002, and its customer base spans the Americas, Europe, and the Asia-Pacific region.
PMEA Solar Tech Solutions IPO
PMEA Solar Tech Solutions, a leading manufacturer of solar tracking and mounting products, aims to raise funds through a combination of:
- Fresh Share Issue: Up to ₹600 crore
- Offer for Sale (OFS): 1.12 crore shares by promoters
The proceeds from the fresh share issue will be allocated toward:
- Setting up manufacturing facilities
- Purchasing new machinery
- Repaying existing debts
Scoda Tubes IPO
Scoda Tubes, a manufacturer of stainless-steel tubes and pipes, plans to raise ₹275 crore through a fresh issue of shares. The company serves a diverse clientele, including sectors like oil and gas, chemicals, engineering, and transportation.
The funds raised will be utilized for:
- Expanding production capacity
- Meeting working capital requirements
Ajax Engineering IPO
Ajax Engineering, a prominent manufacturer of concrete equipment, is launching an IPO structured as an Offer for Sale (OFS) of 2.28 crore equity shares by promoter and investor shareholders. Notably:
- Kedaara Capital, a private equity investor, will offload 74.37 lakh shares as part of the OFS.
- Ajax Engineering operates four manufacturing facilities located in Karnataka.
The company itself will not receive any proceeds from this public offering.
All Time Plastics IPO
All Time Plastics, a maker of consumerware products, plans to raise funds via:
- Fresh Issue: ₹350 crore
- OFS: 52.5 lakh equity shares
The company also has the option to raise up to ₹70 crore in a pre-IPO round. The fresh issue proceeds will go toward:
- Reducing debt
- Expanding manufacturing capacity
All Time Plastics primarily produces consumerware for brands such as IKEA and Tesco.
Vikran Engineering IPO
Vikran Engineering, an infrastructure EPC (Engineering, Procurement, and Construction) company, plans to raise ₹1,000 crore through a combination of:
- Fresh Issue: ₹900 crore
- OFS: ₹100 crore by the promoter
The company specializes in power and water sector projects, with funds earmarked for:
- Meeting working capital requirements
- General corporate purposes
Conclusion
The approval of these IPOs underscores SEBI’s active role in facilitating the growth of India’s capital markets. From technology to consumerware and infrastructure, these IPOs represent a diverse range of industries poised for growth. Collectively, they signal strong investor interest in tapping into India’s evolving economic landscape.
Disclaimer: This news is solely for educational purposes. The securities/investments quoted here are not recommendatory.
