In a recent development, the Securities and Exchange Board of India (SEBI) has granted approval to five companies to go public through initial public offerings (IPOs). The companies include India Shelter Finance, DOMS Industries, Jana Small Finance Bank, Shiva Pharmachem, and Onest Ltd.
According to SEBI’s update on Tuesday, these companies, which submitted IPO documents or draft papers between July and August, received observation letters between November 7 and 16. In SEBI’s terms, obtaining observation letters implies approval to proceed with the IPO.
India Shelter Finance, an affordable housing finance company, plans a ₹1,800-crore IPO, involving a fresh issuance of equity shares valued at ₹1,000 crore and an ₹800 crore Offer for Sale (OFS) by investor shareholders. The IPO is expected to support the company’s future capital needs in lending and general corporate purposes.
DOMS Industries, a pencil manufacturer, outlines its IPO with a fresh issue of up to ₹350 crore and an OFS of up to ₹850 crore by promoters. The proceeds will be directed towards establishing a new manufacturing facility to expand production capabilities for various writing instruments.
Jana Small Finance Bank’s IPO comprises a fresh issue of shares up to ₹575 crore and an OFS of up to 4,051,516 equity shares by existing investors. The bank intends to utilize the net proceeds from the fresh issue to strengthen its Tier 1 capital base for future capital requirements, including organic growth and expansion.
Shiva Pharmachem’s IPO is entirely an OFS of up to ₹900 crore by promoters. As it consists solely of an OFS, all proceeds will go to selling shareholders, with the company not receiving any funds from the issue.
Onest Ltd’s IPO includes a fresh issue of ₹77 crore and an OFS of up to 32.5 crore shares by a promoter and other selling shareholders. The fresh issue proceeds, amounting to ₹60 crore, will be used to fund the company’s working capital requirements and general corporate purposes.
This development marks a significant step for these companies, positioning them to access the capital markets for growth and expansion.
