The Securities and Exchange Board of India approved the initial public offerings of Kalpataru Ltd. and Unimech Aerospace and Manufacturing Ltd. The regulator issued its observations on the IPO offers, which means a final clearance.
Both companies had applied for an IPO in August this year.
Kalpataru IPO
Integrated real estate development Kalpataru's proposed public offering consists of a fresh issue of Rs 1,590 crore consisting of 159 crore shares of face value Rs 10 each, according to the draft red herring prospectus.
Of the net proceeds from the issue, Rs 1,192.5 crore will be used to repay borrowings—Rs 300 crore debt of the company and Rs 892.5 crore of its subsidiary. The remainder will be used for general corporate purposes.
The company is part of the Kalpataru Group, along with Kalpataru Projects International Ltd., which is listed on the NSE and BSE.
Unimech Aerospace IPO
Unimech Aerospace and Manufacturing IPO aims to raise Rs 500 crore. The proposed public offering consists of a fresh issue of Rs 250 crore and an offer-for-sale component of Rs 250 crore, according to the draft red herring prospectus.
The offer for sale consists of the sale of equity shares up to Rs 45 crore by Ramakrishna Kamojhala, up to Rs 45 crore by Mani P, up to Rs 45 crore by Rajanikanth Balaraman, and up to Rs 30 crore by Preetham S V. Rasmi Anil Kumar, the promoter group, will offload stock worth Rs 85 crore.
Net proceeds from the issue amounting to Rs 32.5 crore will be used for funding of capital expenditure for expansion through the purchase of machinery and equipment. A total of Rs 25.2 crore will go towards working capital requirements of the company and for investments in its material subsidiary.
While Rs 43.9 crore will go towards capital expenditure for expansion through the purchase of machinery and equipment, Rs 44.7 crore will go towards working capital. The company will use Rs 40 crore for repayment or prepayment of borrowing and towards general corporate purposes.
The Bengaluru-based firm is a leading manufacturer of complex tooling, mechanical assemblies, electro-mechanical turnkey systems, and precision components. These components are used in aeroengine and airframe tooling for production, maintenance, repair and overhaul, and line maintenance activities.
JSW Cement IPO
Meanwhile, the SEBI continued to keep the JSW Cement Ltd. IPO worth Rs 4,000 crore on hold. The JSW Group company filed its preliminary papers with the market regulator to raise funds through an initial public offering in August. The proposed public offering consists of a fresh issue of Rs 2,000 crore and an offer for sale of the same amount.
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