As many as six companies, including Nykaa, Adani Wilmar and Star Health & Allied Insurance, have received capital markets regulator Sebi’s go-ahead to launch initial share-sales. Apart from these, Penna Cement Industries, Latent View Analytics and Sigachi Industries too received Sebi’s clearance to raise funds through the initial public offerings.
These six companies, which filed their preliminary IPO papers with Sebi between May and August, obtained its “observations” during October 11-14, an update with Sebi showed on Monday. In Sebi parlance, issuance of observations implies its go-ahead to float the initial public offering (IPO). Going by the draft papers, the IPO of FSN E-Commerce Ventures Ltd, which runs online marketplace for beauty and wellness products Nykaa, comprises fresh issue of equity shares worth Rs 525 crore and an offer for sale (OFS) of 43,111,670 equity shares by promoter and existing shareholders.
Those selling shares in the OFS are — promoter Sanjay Nayar Family Trust and shareholders, TPG Growth IV SF Pte Ltd, Lighthouse India Fund III, Lighthouse India III Employee Trust, Yogesh Agencies & Investments, J M Financial and Investment Consultancy Services and some individual shareholders. According to merchant banking sources, the initial share-sale is expected to fetch Rs 3,500-4,000 crore valuing the company in the range of USD 5 billion to USD 5.5 billion.
Adani Wilmar’s proposed IPO will be in form of fresh issue of equity shares for an amount of up to Rs 4,500 crore (approximately USD 600 million). There will not be any secondary offering. The company, which sells cooking oils under the Fortune brand, is a major player in the edible oil industry. Adani Wilmar is a 50:50 joint venture company between the Adani group and the Wilmar group.
Star Health and Allied Insurance Company’s IPO comprises fresh issue of equity shares worth Rs 2,000 crore and an offer for sale of up to 60,104,677 equity shares by promoters and existing shareholders, according to the draft red herring prospectus (DRHP). Those offering shares through the offer for sale are promoter and promoter group Safecrop Investments India LLP, Konark Trust, MMPL Trust; and existing investors Apis Growth 6 Ltd, Mio IV Star, University of Notre Dame Du Lac, Mio Star, ROC Capital Pty Ltd, Venkatasamy Jagannathan, Sai Satish and Berjis Minoo Desai.
Star Health, leading private health insurer in the country, is owned by a consortium of investors like Westbridge Capital and Rakesh Jhunjhunwala. The Hyderabad-based Penna Cement’s IPO comprises fresh issue of equity shares worth Rs 1,300 crore and an offer for sale of up to Rs 250 crore by the promoter, as per the DRHP. Latent View Analytics’ IPO consists of fresh issue of equity shares worth Rs 474 crore and an offer of sale of equity shares to the tune of Rs 126 crore by a promoter and existing shareholders.
As a part of the offer for sale, promoter Adugudi Viswanathan Venkatraman will offload shares worth Rs 60.14 crore, shareholder Ramesh Hariharan will sell Rs 35 crore shares and Gopinath Koteeswaran will offload Rs 23.52 crore shares among others. The IPO of Sigachi Industries, manufacturer of cellulose based excipient, will see sale of upto 76.95 lakh equity shares. Shares of all the six companies will be listed on BSE and NSE.