Lalbaba Engineering, CJ Darcl Logistics and Jerai Fitness file draft IPO

Engineering solutions company Lalbaba Engineering, CJ Darcl Logistics, the India arm of South Korea's logistics firm CJ Logistics, and fitness equipment maker Jerai Fitness and have filed draft papers with markets regulator Sebi to garner funds through initial share-sales.

With these filings, the IPO pipeline remains strong. Over the past few days, nearly two dozen companies have submitted draft papers with Sebi, and so far, 77 main-board IPOs have been launched this year and several large issues are lined up for this month.

The filing also comes at a time when the Indian market is experiencing a boom in primary market activity, despite a struggling broader equity market.

The Kolkata-based Lalbaba Engineering's proposed IPO is a fresh issue of Rs 630 crore and an offer for sale (OFS) of Rs 370 crore by promoters, according to the draft papers filed on September 29.

Proceeds from its fresh issuance worth Rs 271 crore will be utilised for funding capital expenditure requirement for expansion of its Haldia facility, and Rs 209 crore for pre-payment or repayment in full or part of certain borrowings of the company, and general corporate purposes.

The company may consider a pre-IPO placement for up to Rs 126 crore. If such initiative is completed, the fresh issue size will be reduced accordingly.

Incorporated in 2006, the company is an engineering solutions company focussed on the development and manufacture of high-performance seamless tubes, precision forgings and integrated rail systems.

CJ Darcl Logistics' IPO comprises a fresh issue of up to 2.64 crore shares and an OFS of 99.05 lakh equity shares by promoters, according to the draft red herring prospectus.

Funds garnered through the fresh issue will be earmarked for purchasing of equipment and payment of debt.

CJ Darcl Logistics, a subsidiary of CJ Logistics Corporation, is an integrated logistics service provider offering multimodal logistics and warehousing and distribution solutions to enterprise customers across India and select overseas markets. The company operates an asset-right model supported by a large, tech-enabled partner network.

Jerai Fitness' IPO comprises an OFS of 43.92 lakh equity shares by promoters. Since the issue is an OFS, the company itself will not receive any proceeds from the listing.

The company offers equipment tailored to a diverse clientele of commercial gyms, hotels, corporations, and real estate projects, both in domestic and international markets, exporting to multiple countries like Japan, the UAE, Australia, Serbia, Sweden, etc.

It maintains a pan-India presence of 14 exclusive showrooms.

All the three companies will be listed on the BSE and the NSE.