Capital market regulator SEBI has cleared five initial public offerings including that of Oravel Stays, the parent company of OYO and Advanta Enterprises. These companies intend to launch IPOs totaling ₹9,900 crore.
The other issues that received SEBI approval include Truhome Finance, Mehta Hitech Industries and Veegaland Developers.
Listing timeline
These companies have to launch their IPO within one year of receiving the observation letter by filing the Red Herring Prospectus with the Registrar of Companies.
OYO parent Oravel Stays plans to raise ₹6,650-crore IPO through fresh share issuance. The company was targeting a valuation of about $7–8 billion. Earlier, the company filed its draft IPO papers with SEBI last December, opting for the confidential filing route.
OYO had previously attempted to go public in 2021, filing draft papers with SEBI for an ₹8,430 crore IPO at a targeted valuation of around $12 billion. The company later submitted updated offer documents in 2023 with revised financial and operational details.
However, it eventually withdrew its plans to list amid challenging market conditions and subdued investor sentiment driven by global economic uncertainty. The latest marks OYO’s third attempt to list on the stock exchanges.
KKR backed Advanta Enterprises, a leading global seeds and post-harvest solutions provider and a subsidiary of UPL plans offer for sale of up to 36,105,578 equity shares. The OFS comprises up to 28,107,578 equity shares by promoter UPL Ltd, up to 7,995,390 equity shares by selling shareholder Melwood Holdings II and up to 2,610 equity shares by Investor selling shareholder KIA EBT Scheme 2.
Warbag Pincus-backed Truhome Finance, formerly Shriram Housing Finance, plans to launch ₹3,000 crore via IPO which will be a mix of new equity shares of ₹1,500 crore and an offer for sale of ₹1,500 crore by promoter Mango Crest Investment.
Fund utilisation
The net proceeds are proposed to be utilised towards augmenting the capital base to meet the company’s future capital requirements including general corporate purposes and onward lending, arising out of the growth of the business, and to ensure compliance with regulatory requirements on capital adequacy prescribed by the RBI from time to time.
Mehta Hitech Industries plans to raise funds through fresh share issuance through IPO. The company will offer 0.62 crore equity shares. The company is into manufacturer of CO2 laser equipment, fiber laser equipment, CNC routers and digital printers.
Veegaland Developers, a Kerala-based real estate developer backed by the V-Guard group, will raise ₹250 crore through fresh share issuance to finance its ongoing and upcoming residential real estate projects, purchasing identified land parcels in Kerala, future land acquisitions and general corporate purposes.