Allied Blenders and Distillers, Vraj Iron and Steel get SEBI nod for IPOs

14 May 2024 , 09:57 PM

Two companies, Allied Blenders and Distillers, and Vraj Iron and Steel, have received approval from the capital markets regulator SEBI to launch their initial public offerings (IPOs) for fundraising.

The SEBI issued the observation letter for the Allied Blenders IPO papers on May 10, while Vraj Iron and Steel received the said letter for its draft papers on May 7, as per the processing status report published by the regulator.

In SEBI parlance, the issuance of an observation letter signifies that the company can proceed with its IPO plan and raise funds.

Allied Blenders, which filed the preliminary papers for its public issue on January 15 this year, is aiming to raise ₹1,500 Crore through its initial share sale. The IPO comprises a mix of a fresh issue of ₹1,000 Crore worth of shares and an offer-for-sale (OFS) of shares worth ₹500 Crore by promoters.

Promoter Bina Kishore Chhabria will be selling shares worth ₹250 Crore via OFS, while Resham Chhabria Jeetendra Hemdev and Neesha Kishore Chhabria will be selling ₹125 Crore shares each. Additionally, the Mumbai-based leading Indian-made foreign liquor (IMFL) maker may consider fundraising of ₹200 Crore in a pre-IPO placement, before filing the red herring prospectus with the Registrar of Companies (ROC).

Allied Blenders plans to allocate ₹720 Crore out of the net fresh issue proceeds for repaying debts, with the remaining amount earmarked for general corporate purposes. ICICI Securities, Nuvama Wealth Management, and ITI Capital are the book running lead managers to the issue.

Meanwhile, Vraj Iron and Steel, which filed draft papers with the regulator on December 28 last year, aims to raise ₹171 Crore via its initial public offering. The IPO comprises only a fresh issue by the company, with no offer-for-sale component.

The Chhattisgarh-based company intends to utilize ₹129.5 Crore out of the net fresh issue proceeds for capital expenditure towards the expansion project at its Bilaspur plant, with the remainder earmarked for general corporate purposes. Vraj manufactures sponge iron, MS billets, and TMT bars, through two manufacturing plants at Raipur and Bilaspur in Chhattisgarh. Aryaman Financial Services is the sole merchant banker to the issue.