SEBI Approves 7 Upcoming IPOs, Including Ecom Express and IGI, Worth ₹12,000 Crore!
The Securities and Exchange Board of India (SEBI) has given the green light to seven new initial public offerings (IPOs). These approvals could potentially lead to over ₹12,000 crore being raised from the public market in the coming months. The companies that have received approval are Ecom Express, International Gemological Institute of India, Ventive Hospitality, Carraro India, Smartworks Coworking Spaces, Trualt Bioenergy, and Concord Enviro System.
Blackstone-Owned Companies Seek IPOs
Two of the companies receiving SEBI approval, International Gemological Institute of India and Ventive Hospitality, are owned by the Blackstone Group. The International Gemological Institute’s IPO will comprise a fresh issue of shares worth up to ₹1,250 crores and an OFS of ₹2,750 crores. Ventive Hospitality, a joint venture between the Blackstone Group and Panchshil Realty, had previously filed paperwork to raise ₹2,000 crores.
Details of the Seven Upcoming IPOs
Carraro India
Carraro India is a manufacturer of axles and transmission systems for agricultural tractors and construction vehicles. The company aims to raise ₹1,811.65 crores through an entirely offer-for-sale (OFS) by the company's promoter, Carraro International S E.
Carraro India's IPO consists entirely of an offer for sale (OFS) by the company's promoter, Carraro International S. E. As a result, the company itself will not receive any proceeds from the IPO.
Concord Enviro Systems
Concord Enviro Systems Limited is a water and wastewater treatment solutions provider backed by AF Holdings. The company will offer a fresh issue of equity shares valued at ₹192.3 crores and an OFS of 51,94,520 equity shares by existing shareholders.
The funds raised will be used for various purposes, including capital expenditure for developing an assembly unit for water treatment systems and plants in the U.A.E. A portion will be invested in Rochem Separation Systems (India) Private Limited and Roserve Enviro Private Limited. The proceeds will also fund the purchase of plant and machinery, reduce the debt of Concord Enviro FZE, and cover its working capital requirements. Additionally, some funds will be allocated for general corporate purposes.
Ecom Express
Ecom Express Limited is a B2C e-commerce logistics solutions provider backed by Warburg Pincus. The company operates a pan-Indian express logistics network that handles various services, including reverse logistics (returns), fulfillment services (warehousing), first-mile pickup, mid-mile transportation, and last-mile delivery. Ecom Express is offering a fresh issue of equity shares up to ₹1,284.5 crores and an OFS aggregating up to ₹1,315.5 crores.
Ecom Express plans to use the funds from the fresh issue to expand its infrastructure by setting up new processing and fulfillment centres, investing in IT equipment, and paying down existing debt. The company, which counts major clients such as Amazon and Nykaa, aims to enhance its capabilities to better compete with industry giants like Delhivery and Blue Dart.
International Gemological Institute (IGI)
The International Gemological Institute (India) Limited is the largest provider of certification and accreditation for natural diamonds, lab-grown diamonds, studded jewellery, and coloured stones. The company plans to raise nearly ₹4,000 crores through a mix of fresh issue of up to ₹1,250 crores and an offer for sale (OFS) of up to ₹2,750 crores from the public market to fund acquisition goals and general corporate purposes.
IGI plans to use a portion of the proceeds to acquire 100% of the share capital of IGI Belgium Group and IGI Netherlands Group from its promoter. The company will also use funds for general corporate purposes.
Smartworks Coworking Spaces
Smartworks Coworking Spaces Limited is a platform offering managed campuses and office experiences. The company specializes in transforming large, empty properties in desirable locations into fully furnished and technologically advanced campuses. Their IPO consists of an offer for sale (OFS) component from 67.59 lakh shares and a new issue of equity shares valued at ₹550 crore.
Smartworks Coworking Spaces will use ₹282.30 crores from the fresh issue for security deposits and capital expenditures related to the fit-out of new centres. The company has allocated ₹140 crores for loan repayment. The remaining funds will be used for general corporate purposes.
Trualt Bioenergy
Bengaluru-based TruAlt Bioenergy is a major biofuel producer in India. The company is offering a fresh issue of ₹750 crores and an OFS of up to 36 lakh equity shares with a face value of ₹10 each.
Trualt Bioenergy will use ₹172.68 crores of the proceeds to fund capital expenses for setting up multi-feed stock operations. This will allow the company to use grains as an additional raw material in its ethanol plant at TBL Unit 4. The company will also use ₹425 crores for working capital requirements and general corporate purposes.
Ventive Hospitality
Ventive Hospitality Limited is a hospitality asset owner primarily focused on luxury offerings in the business and leisure segments. The company's assets are managed by or franchised through global brands, including Marriott, Hilton, Minor, and Atmosphere. Ventive Hospitality's IPO will consist of a fresh equity issue of up to ₹2,000 crores.
Out of ₹2,000 crores proceeds, ₹1,600 crores is going to be used for paying down debt, which currently stands at ₹412.60 crores as of March 2024. There’s also the possibility of a pre-IPO placement of up to ₹400 crores, which could trim the final issue size. The rest of the funds will be directed toward general corporate purposes.