Three companies– cash management firm CMS Info Systems, Go Fashion, which owns women’s wear brand Go Colors, and Tega Industries, manufacturer of consumables for the mining industry–have received Sebi’s nod to raise funds through initial share-sales.
These firms, which filed their preliminary initial public offering (IPO) papers with the markets regulator in August, have obtained the observations letter from the watchdog during October 26-29, an update with Sebi showed on Monday.
In Sebi’s parlance, observation is equivalent to the regulator’s nod.
Meanwhile, diversified firm PKH Ventures withdrew its draft red herring prospectus (DRHP) on October 28, the update showed.
However, the reason for withdrawal has not been mentioned.
The company had filed its draft papers with Sebi in September and was looking to raise Rs 500 crore through its IPO.
Going by the draft papers, CMS Info Systems plans to mop up Rs 2,000 crore through its initial share sale offering.
The company’s IPO is a pure offer-for-sale (OFS) by promoter Sion Investment Holdings Pte Limited, an affiliate of Baring Private Equity Asia.
Sion Investment, which acquired CMS in 2015, holds 100 per cent stake in the company at present.
The IPO of Go Fashion (India) Ltd, comprises fresh issue of equity shares worth up to Rs 125 crore and an OFS of up to 1.28 crore equity shares by promoter and existing shareholders.
Under the OFS, PKS Family Trust and VKS Family Trust will offload 7.45 lakh equity shares each, Sequoia Capital India Investments will sell up to 74.98 lakh shares, India Advantage Fund S4 I will divest up to 33.11 lakh shares and Dynamic India Fund S4 US I will sell up to 5.76 lakh shares.
Currently, PKS Family Trust and VKS Family Trust hold 28.74 per cent stake each in the company, Sequoia Capital holds 28.73 per cent stake, India Advantage Fund has 12.69 per cent stake and Dynamic India Fund owns 1.1 per cent stake in the firm.
Proceeds from the fresh issue will be used to fund rollout of 120 new exclusive brand outlets, support working capital requirements and for general corporate purposes.
Tega Industries’ IPO is purely an OFS of 13,669,478 equity shares by promoters and a existing shareholder.
As a part of the offer-for-sale, promoters Madan Mohan Mohanka will offload up to 33.14 lakh equity shares and Manish Mohanka will sell 6.63 lakh equity shares.
In addition, Wagner, an affiliate of the US-based private equity firm TA Associates, will offload 96.92 lakh equity shares through the OFS.
The shares of these three companies will be listed on both BSE and NSE.
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