Five Star Business Finance, Waaree Energies get Sebi's nod to float IPOs

Non-banking financial company Five Star Business Finance and solar energy player Waaree Energies have received capital markets regulator Sebi's go-ahead to raise funds through initial share-sales.

The two companies, which filed their preliminary IPO documents with Sebi between September and November, obtained its "observations" letter during January 3-7, an update with the regulator showed on Monday.

In Sebi parlance, issuance of observations letter implies to its go-ahead for the initial public offering (IPO).

Going by the draft papers, Five Star Business Finance, which is backed by bunch of investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR, is looking to raise up to Rs 2,752 crore through an IPO.

The IPO is a entirely an offer for sale by existing shareholders and promoter group entities.

The OFS will see sale of shares to the tune of Rs 257.10 crore by SCI Investments V, Rs 568.92 crore by Matrix Partners India Investment Holdings II LLC, Rs 9.56 crore by Matrix Partners India Investments II Extension LLC, Rs 385.65 crore by Norwest Venture Partners X- Mauritius, Rs 1,349.78 crore by TPG Asia VII SF Pte Ltd and Rs 180.93 crore by promoter group entities.

Currently, TPG Asia holds 20.99 per cent stake, Matrix Partners owns over 14 per cent, Norwest Venture has 10.22 per cent stake and SCI Investments holds 8.83 per cent stake in the company.

Chennai-headquartered Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions.

Waaree Energies' IPO comprises a fresh issue of equity shares of aggregating to Rs 1,350 crore and offer for sale (OFS) of 40,07,500 equity shares by existing shareholders and promoters.

The OFS consists of sale of 13,15,000 equity shares each by Hitesh Chimanlal Doshi, Virenkumar Chimanlal Doshi and Mahavir Thermoequip Pvt Ltd and up to 40,000 by Samir Surendra Shah and up to 22,500 equity shares by Nilesh Gandhi jointly with Drasta Gandhi.

The proceeds from fresh issuance worth Rs 978.36 crore and Rs 184.23 crore will be utilised to finance the cost of setting up a two gigawatts (GW) per annum solar cell manufacturing facility and a one GW per annum solar PV module manufacturing facility in Chikhli, Gujarat.

The remaining proceeds will be used for general corporate purposes.

Waaree Energies is one of the major players in the solar energy industry in India focused on PV module manufacturing, with an aggregate installed capacity of two GW as of March 31, 2021.

The company currently operates three manufacturing facilities comprising four factories in India at Surat, Tumb and Nandigram.