2 days ago
The Securities and Exchange Board of India (SEBI) has cleared six initial public offering (IPO) applications.
The approved IPOs include those of Hexaware Technologies, PMEA Solar Tech Solutions, Scode Tubes, Ajax Engineering, All Time Plastics, and Vikran Engineering. These issuers represent a broad spectrum of industries, reflecting the diverse market appetite for new listings.
The six firms, which had filed their preliminary papers with the market watchdog between September and December, obtained observation letters on January 14-17, an update with SEBI on Monday showed.
In SEBI parlance obtaining observation letters refers to getting the go-ahead to launch an IPO.
Hexaware Technologies filed its DRHP in September last year, aiming to raise ₹9,950 crore through an IPO, which will be entirely an offer for sale from CA Magnum Holdings, an affiliate of Carlyle Group.
Hexaware, a global digital and technology services firm, focuses on artificial intelligence (AI) and provides five key services: design & build, secure & run, data & AI, optimise, and cloud services. The company was delisted from the Indian stock exchanges in 2020.
Mumbai-based PMEA Solar Tech Solutions, a prominent manufacturer of solar tracking and mounting products in India, also filed its DRHP with Sebi in September last year. The IPO, with a face value of ₹10, will consist of a fresh equity issue of ₹600 crore and an offer for sale of up to 11.23 million equity shares.
Gujarat-based Scoda Tubes plans to raise ₹275 crore through its IPO, which will be entirely a fresh issue sale. Scoda Tubes manufactures stainless-steel tubes and pipes, serving a wide range of sectors including oil and gas, chemicals, pharmaceuticals, automotive, railways, and more.
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Additionally, Ajax Engineering, backed by Kedaara Capital, is proposing an IPO, which will be entirely an offer for sale of 2.28 crore equity shares by promoters and investors. Ajax is a leading manufacturer of concrete equipment, offering a wide range of products, services, and solutions across the concrete application value chain.
The approval comes amid a bullish IPO market, with 2024 witnessing record fundraising through initial share sales. The total IPO raising for the year has reached a historic ₹1.6 lakh crore, underpinned by Hyundai Motor India’s monumental ₹27,870 crore offering, the largest in Indian history.
The surge in investor sentiment has driven a marked increase in the average issue size, from ₹867 crore in 2023 to more than ₹1,700 crore in 2024.
Despite the overall positive momentum, SEBI has returned the draft IPO documents of Anand Rathi Share and Stock Brokers, which had filed in December for a ₹745-crore issue. The company had proposed to use the funds for long-term working capital needs and general corporate purposes.
Anand Rathi’s offering was to consist entirely of a fresh equity issue of shares with a face value of ₹5 each. However, on January 17, SEBI returned the documents without providing any reasons for the decision.
