Capital Small Finance Bank, Jesons Industries get Sebi's nod to float IPOs

Capital Small Finance Bank and Jesons Industries, a manufacturer of speciality coating emulsions, have received markets regulator Sebi's go ahead to raise funds through initial public offerings (IPOs).

In addition, Uma Exports too obtained Sebi's green signal for floating an initial share-sale.

These companies, which filed their preliminary IPO papers with Sebi between September and November 2021, received the regulator's observation letters during February 7-8, an update with the markets watchdog showed on Monday.

In Sebi's parlance, its observation implies its go-ahead to launch IPO.

Going by the draft papers, Capital Small Finance Bank's IPO consists of fresh issuance of equity shares worth Rs 450 crore and an offer for sale (OFS) of up to 38.40 lakh equity shares.

The OFS will see the sale of up to 3.37 lakh equity shares by PI Ventures LLP, up to 6.04 lakh equity shares by Amicus Capital Private Equity I LLP, up to 70,178 equity shares by Amicus Capital Partners India Fund I, up to 8.37 lakh equity shares by Oman India Joint Investment Fund II and up to 19.91 lakh equity shares by other shareholders.

The small finance bank (SFB) proposes to utilise net proceed from the fresh issue towards augmentation of the bank's Tier-I capital base to meet the future capital requirements.

Capital Small Finance Bank was granted Scheduled Status by the Reserve Bank of India in February 2017.

The initial share-sale of Jesons Industries comprises a fresh issue of equity shares aggregating up to Rs 120 crore and an OFS of up to 12,157,000 equity shares by promoter Dhiresh Shashikant Gosalia, according to the draft red herring prospectus (DRHP).

At present, Gosalia holds an 86.53 per cent stake in the company.

The public issue includes a reservation of 77,000 equity shares for employees.

The Mumbai-based company may consider the private placement of equity shares aggregating up to Rs 24 crore. If such pre-IPO placement is completed, the fresh issue size will be reduced.

As per market sources, the issue size will be in the range of Rs 800-900 crore.

Proceeds from the fresh issuance of shares will be used to the extent of Rs 90 crore to repay debt, besides general corporate purposes.