New Delhi, Vehicle finance and business loans-focused non-bank lender SK Finance, Muthoot Finance’s microfinance arm Belstar Microfinance and Transrail Lighting have received Sebi’s go ahead to float initial public offerings (IPOs), an update with markets regulator showed on Monday. The three companies, which filed their preliminary IPO papers with Sebi during March-May, obtained their observation letters on August 30.
In Sebi’s parlance, obtaining an observation letter from the regulator means its go ahead to launch public issues.
According to the draft red herring prospectus (DRHP), SK Finance’s proposed IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an offer-for-sale (OFS) of up to Rs 1,700 crore by promoters and investor shareholders.
As a part of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd will offload shares worth Rs 700 crore each, Evolvence Coinvest I will divest shares to the tune of Rs 75 crore and Evolvence India Fund III Ltd will sell shares worth Rs 25 crore.
Additionally, promoters – Rajendra Kumar Setia and Rajendra Kumar Setia HUF – will offload shares aggregating to Rs 180 crore and Rs 20 crore, respectively.
The Jaipur-based SK Finance plans to utilise proceeds from the fresh issue for augmenting the capital base to meet future business requirements of the company towards onward lending and for general corporate purposes.
Belstar Microfinance’s IPO is a mix of fresh issue of equity shares worth Rs 1,000 crore and OFS of Rs 300 crore by investor shareholders, according to the draft papers.
As a part of the OFS, Danish asset management firm MAJ Invest aims to sell shares to the tune of Rs 175 crore, followed by Arum Holdings Ltd (Rs 97 crore) and Augusta Investments Zero Pte Ltd (Rs 28 crore).
MAJ Invest had first invested in Belstar Microfinance in 2018 and again in 2022.
At present, Muthoot Finance, which is one the promoters, holds a little over 66 per cent stake in Belstar Microfinance.
Proceeds from the fresh issue worth Rs 760 crore will be used to meet future capital requirements towards onward lending and the remaining amount will be used for general corporate purposes.
Transrail Lighting’s maiden public issue comprises a fresh issue of equity shares worth Rs 450 crore and an OFS of over 1 crore equity shares by a promoter Ajanma Holdings Pvt Ltd.
At present, promoters hold over 86 per cent stake in the Mumbai-based company.
Proceeds from the fresh issue to the tune of Rs 250 crore will be used to fund incremental working capital requirements, Rs 90.90 crore to support capital expenditure, and balance amount for general corporate purposes.
Shares of these companies will be listed on the BSE and NSE.
