Sebi gives nod to Rubicon Research, Sai Life Sciences, others to float IPOs

Four companies, including pharmaceutical formulation firm Rubicon Research and TPG Capital-backed Sai Life Sciences, have received Sebi's go-ahead to raise at least Rs 3,000 crore collectively through Initial Public Offerings (IPOs), an update with the markets regulator showed on Wednesday.

The other two firms that obtained the regulator's clearance are yarn manufacturer Sanathan Textiles and auto components maker Metalman Auto.

Meanwhile, BMW Ventures, which filed its preliminary IPO papers in September, withdrew the documents on October 28.

The four companies -- Rubicon Research, Sai Life Sciences, Sanathan Textiles and Metalman Auto -- which filed their draft IPO papers with Sebi during July and August, obtained the regulator's observations on October 31, the update showed.

In Sebi's parlance, obtaining observations means its go-ahead to float public issues.

The Rs 1,085-crore IPO of Rubicon Research is a combination of a fresh issue of equity shares worth Rs 500 crore and an Offer For Sale (OFS) of shares valued at Rs 585 crore by the promoter, General Atlantic Singapore RR Pte Limited, according to the Draft Red Herring Prospectus (DRHP).

At present, General Atlantic owns over 57 per cent stake in Rubicon Research.

The company proposes to utilise proceeds from the fresh issue to the tune of Rs 310 crore for payment of debt. Also, funds will be used for supporting inorganic growth through unidentified acquisitions as well as other strategic initiatives and general corporate purposes.

Hyderabad-based Sai Life Sciences' proposed IPO comprises a fresh issue of equity shares worth Rs 800 crore and an OFS of 6.15 crore shares by a promoter, investor shareholders and other shareholders, the DRHP showed.

Of the IPO proceeds, funds to the tune of Rs 600 crore will be used for debt payment and a portion will be used for corporate general purposes, the draft papers filed showed.

Sanathan Textiles' IPO is a mix of a fresh issue of equity shares aggregating up to Rs 500 crore and an OFS of up to Rs 300 crore by promoters and promoter group entities, it stated.

Proceeds from the fresh issue of shares worth Rs 210 crore will be used for investment in the company's subsidiary -- Sanathan Polycot Private Limited -- for funding its long-term working capital requirements, Rs 175 crore for repayment of debt, besides general corporate purposes.

The proposed IPO of Metalman Auto is a combination of a fresh issue of equity shares worth Rs 350 crore and an OFS of up to 1.26 crore shares by its promoters.

Proceeds from the fresh issue to the tune of Rs 25 crore will be used to part financing the capital expenditure towards procurement of plant and machinery at Pithampur manufacturing unit 2 in Madhya Pradesh.