Three companies get Sebi nod for IPOs

The board issued its final observations on the draft offer documents last week, which is necessary for launching a public offer

SSIPL Retail, Paranjape Schemes (Construction) Ltd and Bharat Wire Ropes have received capital markets regulator Sebi's approval to raise funds through initial public offerings (IPOs).

Paranjape and Bharat Wire Ropes filed their draft red herring prospectus (DRHP) with Sebi in July, while footwear manufacturer and retailer SSIPL had approached the capital markets regulator in October.

The Securities and Exchange Board of India (Sebi) issued its final observations on the draft offer documents last week, which is necessary for launching a public offer.

As per the draft papers, Paranjape Schemes plans to come out with a public issue of equity shares "aggregating up to Rs 6,000 million (Rs 600 crore)".

Bharat Wire Ropes aims to raise Rs 70 crore through the issue and SSIPL Retail is looking to garner Rs 72 crore by issuing fresh shares and an offer for sale of up to 19.88 lakh equity scrips.

SSIPL Retail had received a nod from Sebi to launch IPO in May but it had filed fresh papers with the regulator in October.

The funds raised through these issues would be utilized for repayment of loans for expansion plans and for general corporate purposes.

The shares of the firms are proposed to be listed on both NSE and BSE.

Since the beginning of 2015, as many as 41 companies have filed draft documents with Sebi to float IPOs. In the same period, the market watchdog gave an approval to 34 firms to launch their initial share sale plans, some of which were pending from the previous year.

This year, 18 companies have so far launched IPOs, raising more than Rs 12,000 crore, making it the best in four years in terms of fund raising through initial share-sale programmes. The IPO of two companies are currently underway.

In comparison, six IPOs had hit the market in the whole of 2014 and garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.