New Delhi, May 20 -- Education finance company Credila Financial Services Ltd, backed by private equity firms EQT and ChrysCapital, and real estate firm Sri Lotus Developers and Realty Ltd, backed by investor Ashish Kacholia, are among seven companies that have received approval from the Securities and Exchange Board of India (SEBI) to launch their initial public offerings (IPOs).
Credila Financial (formerly HDFC Credila Financial Services), which focuses on education financing, had filed its draft papers confidentially in December last year, nearly 18 months after EQT and ChrysCapital acquired the company from HDFC Ltd.
The private equity consortium purchased a 90% stake in the erstwhile HDFC Credila Financial Services for $1.15 billion (Rs 9,800 crore), as HDFC was required to reduce its shareholding due to its merger with HDFC Bank. The IPO is reportedly expected to raise up to Rs 5,000 crore, with an additional Rs 2,000-crore infusion planned by the EQT-ChrysCap consortium.
Other companies that have received SEBI approval for IPOs include Sri Lotus Developers, Jaro Institute of Technology Management and Research Ltd, Euro Pratik Sales Ltd, Caliber Mining and Logistics Ltd, Gem Aromatics Ltd, and Jesons Industries Ltd.
Mumbai-based Sri Lotus, backed by Kacholia and some Indian movie stars, aims to raise Rs 792 crore via its IPO. There is no offer-for-sale (OFS) component in this issue. The company, which specializes in luxury and ultra-luxury redevelopment projects in the western suburbs of Mumbai, had filed its draft papers for the IPO in December last year.
As per the draft papers, it plans to use Rs 550 crore from the net proceeds to back construction of ongoing projects through subsidiaries Richfeel Real Estate, Dhyan Projects, and Tryksha Real Estate. The remainder will be used for general corporate purposes.
Euro Pratik, a decorative wall panel firm, is eyeing a Rs 730-crore IPO, entirely through an OFS by its promoters.
Nagpur-based Caliber Mining and Logistics, a coal mining and logistics services provider, will raise Rs 600 crore--Rs 500 crore via fresh issue and Rs 100 crore as an OFS. The funds will be used to repay debt and purchase additional equipment.
Jaro Institute is looking to raise Rs 570 crore through a combination of Rs 170 crore fresh issue and Rs 400 crore OFS by promoter Sanjay Namdeo Salunkhe. Proceeds will go towards debt reduction, marketing, branding, and advertising.
Jesons Industries will come up with a Rs 394.1-crore IPO, of which Rs 300 crore will be a fresh issue and the remaining Rs 94.1 crore will be OFS. It will use the money to retire debt and for capital expenditure.
Mumbai-based Gem Aromatics, which manufactures specialty ingredients, will raise Rs 175 crore through fresh equity and OFS, and use the proceeds to repay debt.
Published by HT Digital Content Services with permission from VC Circle.