Prince Pipes and Fittings has received Sebi's go ahead to raise an estimated Rs 800 crore through an initial public offering, latest update with market regulator showed.
The firm had filed draft papers with Sebi in September and obtained its "observations" on November 3, which is very necessary for any company to launch a public offer.
Going by the draft papers, Prince Pipes and Fittings' public issue comprises fresh issue of shares worth up to Rs 500 crore besides an offer for sale by the company's promoters -- Jayant Shamji Chheda, Tarla Jayant Chheda, Parag Jayant Chheda and Vipul Jayant Chheda.
As per the merchant banking sources, the company's initial public offer (IPO) is expected to garner Rs 800 crore.
Proceeds from the issue will be utilised for payment of certain outstanding loans; financing the project cost towards establishment of a new manufacturing facility; upgradation of equipment at manufacturing facilities; and general corporate purposes.
JM Financial Institutional Securities Ltd and Edelweiss Financial Services Ltd are the book running lead managers to the issue.
Prince Pipes and Fittings Ltd, a leading polymer pipes and fittings manufacturers in India, has five manufacturing facilities -- two in Dadra and Nagar Haveli and one each in Haridwar, Chennai and Kolhapur.
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