Zircon Technologies, engaged in the business of label printing for packaging of products, has received markets regulator Sebi's go ahead to float an initial public offering.
With this, the total number of companies getting clearance from the Securities and Exchange Board of India (Sebi) to launch IPO has reached 70 so far this year.
Zircon Technologies (India), which had filed draft papers with Sebi in September, obtained the regulator's observations on November 12, latest update with the markets watchdog showed.
The regulator's observations are necessary for the launch of any public issue such as initial public offer (IPO), follow-on public offer (FPO) and rights issue.
Zircon, a research-based organisation that creates innovative brand security, anti-counterfeiting, and authenticity for brands and documents, as per company website.
Going by the draft papers, the company's IPO comprises 5.9 million equity shares.
Proceeds of the issue will be utilised for repayment of certain borrowings availed by the company, for setting up of new manufacturing facility at Dehradun, funding the working capital requirements of the firm and general corporate purposes.
"In addition, our company expects to receive the benefits of the listing of the equity shares on the stock exchanges and enhancement of our company's brand name and creation of a public market for our equity shares in India," the draft papers noted.
Systematix Corporate Services is the sole book running lead manager to the IPO. The equity shares of the company will be listed on NSE and BSE.