Vishal Mega Mart, ACME Solar Holdings get Sebi's go ahead to float IPOs

Three companies -- supermart major Vishal Mega Mart, renewable energy firm ACME Solar Holdings and packaging equipment manufacturer Mamata Machinery -- have received Sebi's clearance to raise funds through initial public offerings (IPOs), an update with the regulator showed on Monday.

On the other hand, the regulator has returned the draft offer document of manpower services company Innovision, whose proposed IPO was a mix of fresh issuance of shares worth Rs 315 crore and an Offer For Sale (OFS) of up to 11.81 lakh shares.

Before that, Hyundai MotorIndia Ltd, the Indian arm of South Korean automaker Hyundai, and food and grocery delivery major Swiggy received Sebi's nod on September 24 to float IPOs.

Sources had previously stated that the South Korean automaker is looking to raise at least $3 billion (about Rs 25,000 crore) through an initial share sale, while the IPO of Swiggy has been pegged at over Rs 10,000 crore.

Going by Sebi's update on Monday, Mega Mart took the confidential filing route to submit its draft papers in July with the markets regulator, keeping details undisclosed for the time being. It obtained the regulator's observations on September 25.

Under the confidential filing process, Sebi reviews confidential DRHP and provides comments on it. Thereafter, the company going public is required to file an update to the confidential DRHP (UDRHP-I) after incorporating the regulator's comments. This UPDRHP-I is made available for public comments over 21 days. Finally, after incorporating the changes due to public comments, the company is required to update the DRHP-II (UDRHP-II).

Gurugram-based ACME Solar Holdings and Mamata Machinery got Sebi's observations on September 27 to launch their respective IPOs. The regulator received the draft papers of both companies in July.

In Sebi's parlance, its observation means go ahead to float the public issue.

ACME Solar Holdings' proposed IPO is a combination of a fresh issue of shares worth Rs 2,000 crore and an OFS of shares valued Rs 1,000 crore by ACME Cleantech Solutions, according to the Draft Red Herring Prospectus (DRHP).

Proceeds from the fresh issue will be used for debt payment and for general corporate purposes.

Gujarat-based Mamata Machinery's initial share sale is entirely an OFS of 73.82 lakh equity shares by promoters, DRHP showed.

Those selling shares under the OFS are Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP.

The country's IPO market is thriving with 62 companies, including Bajaj Housing Finance, Ola Electric Mobility and FirstCry's parent Brainbees Solutions, having already mobilised around Rs 64,000 crore collectively via mainboard in this year so far.

This marks a 29 per cent increase from Rs 49,436 crore collected by 57 firms through the route in the entire 2023.