Sembcorp Energy, Montecarlo get Sebi's go-ahead for IPO

Sembcorp Energy India, an independent power producer, and construction company Montecarlo have received capital markets regulator Sebi's go ahead to float an initial public offer.

With this, the total number of companies getting Sebi's approval for initial public offer (IPO) has reached 39 so far this year.

Sembcorp Energy had approached the regulator in February seeking its clearance for the IPO, while Montecarlo had filed its draft papers with Sebi in May.

As per the latest update with Sebi, the regulator issued its "observations" to Montecarlo and Sembcorp Energy on July 31 and August 1, respectively.

Sembcorp Energy's IPO comprises fresh issue of shares worth up to Rs 4,095 crore and an offer for sale (OFS) of up to 14,67,74,194 equity scrips by the existing shareholders.

This includes sale of 12,89,41,129 shares by Sembcorp Utilities and up to 1,78,33,065 equity scrips by Gayatri Energy Ventures.

Proceeds from the issue will be utilised towards repayment of certain indebtedness, and for other general corporate purposes, the company said.

Sembcorp Energy,which has thermal and renewable power assets in India, is promoted by the Singapore Exchange-listed Sembcorp Industries.

Axis Capital Credit Suisse Securities (India), CLSA India, and SBI Capital Markets are global co-ordinators and book running lead managers to the offer, while IndusInd Bank is the merchant banker to the public issue.

Montecarlo's initial share-sale consists of fresh issuance of shares worth Rs 450 crore besides an offer for sale of up to 30 lakh equity stocks by existing shareholder Kanubhai M Patel Trust.

Ahmedabad-based firm has more than two decades of execution experience having completed 67 EPC (engineering, procurement, construction) projects.

According to merchant banking sources, the initial public offer (IPO) is expected to fetch Rs 550 crore.

Proceeds of the issue will be utilised towards investment in the company's projects, to meet working capital requirements and for other general corporate purposes.

Edelweiss Financial Services, Axis Capital and IDFC Bank will manage the company's public issue.