INOX India and Stanley Lifestyles Get SEBI Nod for IPOs

6 Dec 2023 , 12:22 PM

INOX India and Stanley Lifestyles have secured approval from the Securities and Exchange Board of India (SEBI) for their upcoming initial public offerings (IPOs).

The cryogenic equipment and tanks manufacturer, INOX India, received an observation letter from SEBI on November 29. Similarly, the regulator issued an observation letter to Stanley Lifestyles, backed by the Oman India Joint Investment Fund, on November 30.

In SEBI terminology, the issuance of an observation letter signifies that the companies can proceed with their fundraising plans through IPOs.

INOX India, based in Gujarat, submitted its IPO papers to the regulator in August. The public issue consists solely of an offer-for-sale (OFS) of 2.21 crore equity shares by existing shareholders. The selling shareholders in the OFS include promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, and Ishita Jain. Other shareholders, such as Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta, will also be offloading shares through the OFS.

Therefore, the entire proceeds from the issue will go to these selling shareholders, and the company will not receive any funds from the offer. INOX India’s products, including standard cryogenic tanks, equipment, beverage kegs, technology solutions, and turnkey projects, find applications in various industries such as industrial gases, liquefied natural gas (LNG), green hydrogen, energy, steel, and medical and healthcare.

Stanley Lifestyles, a Bengaluru-based home solutions provider, filed draft papers in September for a fresh issue of shares worth Rs 200 crore and an OFS component of 91.33 lakh shares. Promoters Sunil Suresh and his wife Shubha Sunil will offload 11.82 lakh shares each via OFS, while Oman India Joint Investment Fund II will sell 55.44 lakh shares, and Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati will sell 12.25 lakh shares, according to the Draft Red Herring Prospectus (DRHP).

Currently, Sunil Suresh and his wife hold a 67.35 percent shareholding in the company, while Oman India Joint Investment Fund II, owned by OIJIF-MC, has a 26.86 percent stake. OIJIF-MC is backed by two major sponsors – Oman Investment Authority and State Bank of India.

Stanley Lifestyles plans to use the proceeds from the fresh issue for opening new stores, renovating existing stores, acquiring new machinery and equipment, and general corporate purposes. Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets are the book-running lead managers for the issue.