SEBI Gives Nod to Gopal Snacks, Dee Development Engineers, and SRM Contractors for IPOs

13 Feb 2024 , 09:30 AM

The capital markets regulator SEBI has greenlit the fundraising plans of Gopal Snacks, Dee Development Engineers, and SRM Contractors through their respective initial public offerings (IPOs).

SEBI issued observation letters to Dee Development Engineers on February 7, Gopal Snacks on February 8, and SRM Contractors on February 9, signaling that these companies can proceed with their public issues within a year from the date of receiving the observation letter.

Dee Development Engineers IPO: Dee Development Engineers, a piping solutions company based in Haryana, filed its draft papers with SEBI on September 28, 2023. The IPO comprises a fresh issue of shares worth ₹325 Crore by the company and an offer-for-sale (OFS) of 79 lakh shares by promoter Krishan Lalit Bansal.

Before filing the red herring prospectus with the Registrar of Companies, the company may opt for a pre-IPO placement to raise ₹65 Crore. The net fresh issue proceeds will mainly be allocated to working capital requirements amounting to ₹75 Crore and debt repayment of ₹175 Crore. SBI Capital Markets and Equirus Capital are the appointed book running lead managers to the issue.

Gopal Snacks IPO: Gujarat-based FMCG company Gopal Snacks, which submitted preliminary papers with SEBI on November 21 last year, plans to raise ₹650 Crore through its IPO. The offering consists solely of an offer-for-sale (OFS) by existing shareholders, including promoters Bipinbhai Vithalbhai Hadvani and Gopal Agriproducts.

Promoters hold 93.5% of the company, while the remaining 6.5% is held by public shareholders. Intensive Fiscal Services, Axis Capital, and JM Financial are the appointed merchant bankers.

SRM Contractors IPO: SRM Contractors, an engineering construction and development company based in Jammu and Kashmir, aims to raise funds through an IPO of 62 lakh equity shares. The IPO comprises only a fresh issue by the company, with no offer-for-sale component.

The net fresh issue proceeds will be allocated towards purchasing equipment/machinery, repaying debts, meeting working capital requirements, and investing in project-specific joint ventures. SRM primarily engages in construction activities in the Union Territories of Jammu & Kashmir and Ladakh. Interactive Financial Services is the sole book running lead manager.