Five firms file draft prospectus with Sebi for IPO in April-May

Don't want to miss the best from Business Standard?

Five companies, including state- run Rashtriya Ispat Nigam, have filed initial papers for listing in the first two months of this financial year, even as tough market conditions have forced at least two entities to shelve their initial public offering (IPOs) during this period.

During the April-May period, Rashtriya Ispat Nigam Ltd (RINL), Goodwill Hospital and Research Centre, Fast Train Cargo, Ace Tours Worldwide and C Mahendra Infojewels have filed their respective Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) for the purpose of launching an IPO. Of these, Sebi has sought clarification or additional information from the merchant bankers of C Mahendra Infojewels and Goodwill Hospital, as per the information till May 25, 2012 available with the regulator.

Two companies packaging materials maker Plastene India and auto parts manufacturer Samvardhana Motherson Finance — shelved their IPO plans last month citing poor response from investors amid weak broader market.

Goodwill Hospital had also pulled out its IPO in January, but once again filed draft papers in May to mop up Rs 98 crore through share sale. The IPO was shelved after the issue failed to get subscription of even one per cent of its shares on sale. It was the first company to withdraw its IPO in 2012.

State-run RINL has submitted a DRHP last month to divest 48.898 crore shares, or a 10 per cent stake, through an IPO. Besides, logistic services provider Fast Train Cargo has filed papers in May to raise funds by issuing 52.83 lakh shares constituting to 48.99 per cent stake of the company.

Most of the companies plan to utilise IPO proceeds for capacity expansion as well as working capital requirements.