SEBI Approves IPOs Of Defence Equipment Maker SMPP, Brigade Hotel And Six Others

Defence equipment manufacturer SMPP Ltd., Aditya Infotech Ltd., Brigade Hotel Ventures Ltd., PVC blend-based building material maker Kumar Arch Tech Ltd., Solarworld Energy Solutions Ltd., Indogulf Cropsciences Ltd., Globe Civil Projects Ltd., and Prostarm Info Systems Ltd., received approval from the Securities and Exchange Board of India on Tuesday to raise funds through an initial public offering.

The eight companies, which submitted their draft papers to SEBI between October and November, received observation letters between Jan. 28-31, according to a circular from the capital markets regulator. An observation letter signifies the markets regulator's clearance for a company to proceed with the launch of its IPO.

Shares of these firms are proposed to be listed on the BSE and NSE.

Together, these firms aim to raise more than Rs 7,800 crore, merchant bankers said.

Additionally, auto component maker Viney Corp. withdrew its draft IPO papers on Jan. 27, without giving a reason.

SMPP Ltd.'s Rs 4,000-crore IPO includes a fresh issue of equity shares worth up to Rs 580 crore and an offer-for-sale of shares worth up to Rs 3,420 crore by promoter Shiv Chand Kansal, according to the draft papers. At present, Kansal holds a 50% stake in the company.

Proceeds from the fresh issue will be utilised primarily for capital expenditure of Rs 437.04 crore, which includes constructing buildings, land development, and procuring plant and machinery for a planned ammunition manufacturing facility, through an investment in a subsidiary. The remaining amount will be allocated for general corporate purposes.

Aditya Infotech's proposed IPO is a combination of a fresh issue of equity shares worth Rs 500 crore and an OFS of shares valued Rs 800 crore by promoters, as per the draft papers.

Proceeds from the fresh issue to the tune of Rs 375 crore have been earmarked for payment of debt. A portion will also be used for general corporate purposes.

Brigade Hotel Ventures is looking to raise Rs 900 crore through a fresh issue of equity shares.

Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.

Additionally, Rs 107.52 crore will be used to purchase an undivided share of land from the promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.

Kumar Arch Tech's IPO is a mix of fresh issue of shares worth Rs 240 crore, and an OFS of Rs 500 crore by promoters.

Proceeds from the fresh issue to the tune of Rs 182.09 crore will be used for investment in subsidiary Taylias Industry Pvt., for financing its capital expenditure requirements for the greenfield project.

Solarworld Energy Solutions IPO consists of a fresh issue of equity shares worth Rs 550 crore and an OFS of Rs 50 crore.

Indogulf Cropsciences is aiming to raise Rs 200 crore through fresh issue of shares. Besides, there will be an OFS of up to 38.55 lakh equity shares by selling shareholders. If the placement is completed, the fresh issue size will be reduced.

The Delhi-based company plans to use proceeds from the fresh issue to support working capital requirements, payment of debt, setting up an in-house dry flowable plant at Barwasni in Haryana; and for general corporate purposes.

The IPO of Globe Civil Projects is entirely a fresh issue of 1.9 crore equity shares with no OFS component. The company would utilise the IPO proceeds for funding working capital requirements, purchase of equipment, and for general corporate purposes.

Power solutions products manufacturing company Prostarm Info Systems' IPO will be an entirely fresh issue of 1.6 crore equity shares.

The Maharashtra-based company plans to utilise funds for working capital requirements, repaying debt, acquisition of further stake of subsidiary to make it a wholly-owned subsidiary, inorganic growth, and general corporate purposes.