ACB India files initial IPO papers with Sebi

Company plans to enter the capital markets with a public issue of up to 30,940,000 equity shares

Coal washing company ACB (India) Ltd has filed draft documents with market regulator Sebi for an initial public offer of more than three crore shares.

It is the 14th company to file initial papers with the Securities and Exchange Board of India this year to garner funds through the IPO route.

ACB (India) plans to enter the capital markets with a public issue of up to 30,940,000 equity shares of face value of Rs 10 each, as per its Draft Red Herring Prospectus (DRHP).

It said the company will have "Initial Public Offering of up to 30,940,000 equity shares having a face value of Rs 10 each...Through an offer for sale of up to 30,940,000 equity shares".

The sale offer will be made by Pineridge Investment, Ganesh Chandra Mrig and Ashok Mrig collectively referred to as as the selling shareholders in the company.

According to the Delhi-based company, the purpose of the IPO is to achieve the benefits of listing the Equity Shares on the Stock Exchanges and for the sale of up to 30,940,000 Equity Shares by the selling shareholders.

"Further, our company expects that listing of the equity Shares on the Stock Exchanges will enhance its visibility and brand image and provide liquidity to its existing shareholders," ACB India said in the draft document.

"Our Company will not receive any proceeds of the Offer and all the proceeds of the Offer will go to the selling shareholders," it added.

Edelweiss Financial Services, Macquarie Capital Securities are the lead managers, while Link Intime India is the registrar to the issue.

The company has received in-principle approvals from NSE and BSE for listing of its shares.

Going by the details in the DRHP, ACB (India) is the largest coal washing company in India, with an aggregate design beneficiation capacity, on a proportional basis, of 62.57 MTPA, as of August 2014.

The company has nearly 16 years of experience in the coal beneficiation business and has 17 beneficiation plants, which are located across the states of Chhattisgarh, Odisha, Maharashtra and Andhra Pradesh.

Lavasa Corp, Adlabs Entertainment, GMR Energy, Rashtriya Ispat Nigam Ltd, Sharda Cropchem, Monte Carlo Fashions, Uniparts India, PNC Infratech, C L Educate, Videocon D2H are some of the firms that have filed IPO papers so far this year.