Nova Agri, Netweb Tech India, EMS get Sebi's approval to float IPO

Agri-input manufacturer Nova Agritech, server maker Netweb Technologies India and sewerage solution provider EMS have received capital market regulator Sebi's approval to raise funds through initial public offerings.

The three companies, which filed their preliminary papers with Sebi between March and April 2023, obtained the regulator's observations during June 26-30, an update with the markets watchdog showed on Tuesday.

In Sebi's parlance, obtaining observation means its go-ahead to float the initial share sale.

As per the draft papers, Nova Agritech's initial share sale comprises a fresh issue of equity shares worth up to Rs 140 crore and an offer-for-sale (OFS) component of up to 77,58,620 equity shares of shareholder Nutalapati Venkatasubbarao.

The proceeds from the fresh issue worth Rs 14.20 crore will be utilised for investment in its subsidiary Nova Agri Sciences for setting up a new formulation plant, Rs 10.49 crore for funding capital expenditure by Nova Agritech and towards the expansion of its existing formulation plant.

Further, it will also use Rs 26.69 crore for funding of working capital requirement of Nova Agritech, Rs 56.74 crore for investment in Nova Agri Sciences, for funding working capital requirements and general corporate purposes.

Server maker Netweb Technologies India's IPO comprises a fresh issue of equity shares worth Rs 257 crore and an offer for sales of 85 lakh equity shares by promoters.

Under the OFS, those selling shares are Sanjay Lodha, Vivek Lodha, Navin Lodha, Niraj Lodha and Ashoka Bajaj Automobiles Pvt Ltd.

The IPO of EMS comprises a fresh issue of equity shares worth Rs 180 crore and an offer for the sale of 82.94 lakh shares by promoter Ramveer Singh. At present, Singh holds a 97.81 per cent stake in the company.

Proceeds from the fresh issue will be utilised towards funding working capital requirements and other general corporate purposes.

Shares of these three companies will be listed on BSE and NSE.