Six companies file IPOs, aiming to raise funds for expansion and debt repayment

Six companies, including Sterlite Electric from the Vedanta Group, Rays Power Infra, and Augmont Enterprises, have filed preliminary papers with markets regulator SEBI to raise funds through initial public offerings (IPOs). Rotomag Enertec, Oswal Cables, and Pride Hotels have also submitted draft papers for review. Each of these proposed issues includes a combination of fresh equity shares and an offer for sale (OFS), according to the draft red herring prospectuses submitted recently.

Sterlite Electric Ltd, formerly Sterlite Power Transmission Ltd, plans to issue 77.9 lakh fresh equity shares and an equal number of shares under OFS by existing shareholders and promoters. The company intends to use the proceeds to repay or prepay some borrowings, invest in capital expenditure including new plants, machinery, and equipment, and support general corporate purposes. Sterlite Electric manufactures capital goods and provides system integration solutions for power transmission and distribution in both domestic and international markets.

Rays Power Infra, based in Mumbai, aims to raise INR 1,150 crore through a fresh issue of INR 900 crore and an OFS of INR 250 crore. Of the funds raised, INR 500 crore will be invested in its subsidiary, Rays Green Energy, to set up a 1.5 GW PV Solar n-type TOPCon G12R cell manufacturing plant in Madhya Pradesh. Another INR 200 crore is planned for working capital, with the remainder allocated to general corporate purposes.

Augmont Enterprises, an integrated platform for gold and silver, plans to raise INR 800 crore via a fresh issue of INR 620 crore and an OFS of INR 180 crore. These funds are expected to support working capital, mainly for procurement and inventory management, as well as advance margin requirements and other corporate expenses.

Gujarat-based Rotomag Enertec is targeting INR 500 crore through a fresh equity issue, in addition to an OFS of 2.4 crore shares by existing shareholders, including promoters and BanyanTree Growth Capital. The company may also consider a pre-IPO round of up to INR 100 crore. The proceeds will fund redemption of non-convertible debentures, working capital requirements, and general corporate purposes. Rotomag produces DC motors, drive systems, gear-reduction systems, and solar pumping solutions, serving industrial, rural, and renewable energy markets.

Oswal Cables intends to raise INR 300 crore through a fresh issue alongside an OFS of up to 2.22 crore equity shares. The funds will be used for setting up a new project, debt repayment, and general corporate purposes.

Pride Hotels, headquartered in New Delhi, is planning an IPO comprising a fresh issue of INR 260 crore and an OFS of 3.92 crore shares. The company plans to use the funds for renovation of existing hotels, debt repayment, and other corporate needs. It may also consider raising INR 52 crore through a pre-IPO placement, with the fresh issue size adjusted accordingly.

Overall, these filings reflect a robust IPO pipeline, with nearly two dozen companies submitting draft papers in recent days and 77 main-board IPOs already launched this year.

Source PTI