Zaggle Prepaid, Cyient DLM, Healthvista India, Rashi Peripherals and Vishwaraj Sugar Industries have obtained the green signal to launch their initial public offerings (IPOs). The approvals come at a time when capital raising by way of IPOs has slowed to a crawl, with only four issues hitting the market so far this calendar year.
Last week, the Securities and Exchange Board of India (Sebi) issued final observation letters on their draft red herring prospectuses (DRHPs), which is akin to getting approval to hit the markets.
How soon these firms are able to launch their IPOs remains to be seen. Already, 54 companies proposing to raise a cumulative Rs 76,189 crore are sitting on Sebi approvals, according to Prime Database, a primary market tracker.
The latest five companies to get approvals are together aiming to raise between Rs 2,000 crore and Rs 3,000 crore, said investment bankers.
Electronic manufacturing service provider Cyient DLM plans to raise Ra 740 crore through the fresh issue. The company, a subsidiary to the listed player Cyient, may consider a pre-IPO placement of Rs 148 crore.
Healthvista India, which owns the Protea brand, an out-of-hospital healthcare provider, had filed the draft papers in June last year. The IPO consists of a fresh issue of Rs 200 crore and an offer for sale for Rs 56.2 million shares. The public issue of Rashi Peripherals, which provides IT solutions, is a completely fresh issue for raising Rs 750 crore, of which Rs 400 crore will be used to repay certain outstanding borrowings, while Rs 200 crore will be used for corporate purposes.
Interestingly, Sebi's nod for Healthvista came within weeks of its changing its status from professionally-managed company or a promoter-led company. "The company has, in consultation with the relevant stakeholders, decided to identify Ganesh Krishnan and Meena Ganesh as its promoters," it said an addendum to its DRHP dated March 10.
Industry players said the market regulator is now taking a stringent approach towards the practice of founders, particularly in case of new-age companies. shrugging off 'promoters' tag at the time of IPOs.
The offer for fintech-SaaS company Zaggle Prepaid Ocean consists of a fresh issue of up to Rs 490 crore and an offer for sale of up to 10.5 million shares. In its DRHP, the company had said that the proceeds from the fresh issue will be used to acquire customers, develop technology and products, and pre-payment of certain borrowings.