Upcoming IPOs: Kent RO Systems, Vidya Wires, and Karamtara Engineering Ltd Get SEBI Approval for IPO

The Securities and Exchange Board of India (SEBI) released its observation letters for Kent RO Systems, Vidya Wires, and Karamtara Engineering Ltd., giving its final approval for the Initial Public Offering (IPO). 

Kent RO Systems IPO will be an Offer for Sale by its promoters, while Vidya Wires and Karamtara Engineering Ltd. are set to launch book-building issues, combining fresh issues of shares with offers for sale.

Below are the key details about these upcoming IPOs that investors need to know.

Kent RO IPO Details

Kent RO Systems IPO will be an Offer for Sale (OFS) of 1 crore equity shares by the company's promoters. The promoters, Sunita Gupta, Mahesh Gupta, and Varun Gupta, who currently own 99.77% of the company's shares, will sell their stake through this OFS. 

Mahesh Gupta will be selling the largest portion of shares, with 56,35,088 equity shares. Sunita Gupta and Varun Gupta will be selling 33,60,910 and 10,98,570 equity shares, respectively.

Kent RO Systems is involved in the manufacturing and sale of water purifiers, water softeners, kitchen appliances, and home appliances under the "Kent" brand. The company has four manufacturing units, with one located in Roorkee, Uttarakhand, and three in Noida, Uttar Pradesh.

Utilisation of Proceeds

Kent RO Systems will not receive any financial proceeds from the offer, and all such proceeds will be distributed to the selling shareholders.

Vidya Wires IPO Details

Vidya Wires IPO will be a bookbuilding consisting of a fresh issue of ₹320.00 crore and an offer for sale (OFS) of 1 crore shares. Pantomath Capital Advisors Pvt Ltd and IDBI Capital Market Services Limited have been appointed as the book-running lead managers, while MUFG Intime India Private Limited (Link Intime) serves as the registrar for the issue.

Incorporated in 1981, Vidya Wires is a leading manufacturer of winding and conductivity products catering to various industries. Its product portfolio includes precision-engineered wires, enamelled copper rectangular strips, paper-insulated copper conductors, copper busbars, bare copper conductors, specialised winding wires, PV ribbons, and aluminium paper-covered strips.

Utilisation of Proceeds

The company plans to utilise the net proceeds from the fresh issue for the following purposes:

• Funding capital expenditure requirements for setting up a new project in its subsidiary, ALCU.
• Repayment or prepayment of outstanding borrowings.
• General corporate purposes 

The company will not receive any proceeds from the Offer for Sale. After deducting offer-related expenses and taxes, the selling shareholders will be entitled to their portion of the OFS proceeds.

Karamtara Engineering Ltd IPO Details

Karamtara Engineering's IPO will be a bookbuilding of ₹1,750.00 crores, comprising a fresh issue of ₹ 1,350.00 crores and an offer for sale of ₹400.00 crores. JM Financial Limited, ICICI Securities Limited, and IIFL Capital Services Limited are the book running lead managers of the Karamtara Engineering IPO, while MUFG Intime India Private Limited (Link Intime) is the registrar for the issue. 

Karamtara Engineering is a vertically integrated manufacturer specialising in products for the renewable energy and transmission line sectors. It is considered a one-stop shop for solar structures, offering fixed-tilt and tracking systems. 

Utilisation of Proceeds

The company plans to use ₹1,050 crore from the fresh issue towards debt repayment and the remaining portion for general corporate purposes.