Capital markets regulator Securities and Exchange Board of India has cleared the IPOs of 13 companies, including that of Urban Company and Imagine Marketing (boAt) aggregating to ₹15,700 crore.
Defying the weak sentiments in the secondary market, six out of the 13 companies that received approval are tapping the market to raise over ₹1,000 crore each. These companies are banking on the excess liquidity in the market to ensure that their IPOs sail through despite the growing economic uncertainty amid tariff tussle with the US.
Other firms that received the nod are Juniper Green Energy, Jain Resource Recycling, Mouri Tech, Ravi Infrabuild Projects, Pace Digitek, Omnitech Engineering, Corona Remedies, KSH International, Allchem Lifescience, Priority Jewels, and Om Freight Forwarders.
These companies had filed their preliminary IPO papers between March and June, and obtained SEBI’s observations during August 1-29.
Urban Company plans to raise ₹1,900 crore through its proposed IPO, which includes ₹429 crore through selling new shares and another ₹1,471 crore through offer for sale by existing investors.
The selling shareholders include Accel India and Elevation Capital, Bessemer India Capital Holdings II Ltd, Internet Fund V Pte, and VYC11. Earlier, the company initially aimed for a larger ₹3,000 crore IPO, but scaled it down to ₹1,900 crore due to market conditions.
Warburg Pincus-backed Imagine Marketing (boAt), known for its headphones and smart watches, filed paper confidentially in April to raise ₹2,000 crore. It comprises of fresh equity issuance of ₹900 crore, and an offer for sale of ₹1,100 crore.
Traditional route
Market experts believe that the confidential pre-filing route is gaining prominence as it provides flexibility and reduces pressure on companies to go public. In the traditional route, IPOs have to be executed in one year after getting SEBI approval, while the pre-filing route allows companies to float an IPO in 18 months from the regulator’s final comments.
Gurugram-based Juniper Green Energy plans to raise up to ₹3,000 crore through a fresh issue of shares. The IPO is expected to attract investor interest due to its focus on clean energy.
The main purpose of Juniper Green IPO is to reduce debt of its subsidiaries, including Juniper Green Gamma One, Green Three, and Green Field. The remaining amount will be used for general corporate purposes such as expanding operations, bidding for new projects and covering daily business expenses.
Jain Resource Recycling plans to raise ₹2,000 crore, while Mouri Tech and Ravi Infrabuild Projects are targeting to raise ₹1,500 crore and ₹1,100 crore.