Fincare Small Finance and Western Carriers received SEBI approval to float IPO

26 Sep 2023 , 02:43 PM

Fincare Small Finance Bank Ltd and logistics company Western Carriers (India) Ltd have secured approval from the Securities and Exchange Board of India (Sebi) to raise funds through Initial Public Offerings (IPOs). These two companies had submitted preliminary IPO documents to Sebi between May and June. The regulator issued observation letters between September 15-22, as reported in an update.

Fincare Small Finance Bank’s IPO includes a fresh issue of equity shares valued at up to Rs 625 crore and an Offer For Sale (OFS) aggregating up to 1.7 crore equity shares by promoters and investors. The entities participating in the OFS include Fincare Business Services Ltd (a promoter), Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd, Leapfrog Rural Inclusion (India) Ltd, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd, and Zuno General Insurance (formerly known as Edelweiss General Insurance Company).

The net proceeds from the fresh issue will be channeled into enhancing Fincare Small Finance Bank’s Tier-1 capital base to meet future capital requirements.

The book running lead managers for the Fincare Small Finance Bank IPO are ICICI Securities Limited, Axis Capital Limited, IIFL Capital Services Limited, SBI Capital Markets Limited, and Ambit Private Limited. This development marks another step toward these companies accessing the capital markets to fuel their growth and expansion.

Western Carriers IPO

Western Carriers (India) Ltd, the country’s largest private, multi-modal asset-light logistics company, filed its draft red herring prospectus (DRHP) in June, paving the way for its upcoming Initial Public Offering (IPO). The Western Carriers IPO comprises an offer for sale (OFS) component of up to 93.29 lakh equity shares by the promoter, Rajendra Sethia, and a fresh issue of equity shares with a total value of up to Rs 500 crore.

The company has outlined the utilization of the net proceeds from the fresh issue, which includes paying off or scheduling the repayment of a portion of certain outstanding debt amounting to Rs 200 crore, funding capital expenditure requirements amounting to Rs 186 crore, primarily for the acquisition of commercial vehicles, 40-foot specialty containers, 20-foot standard shipping containers, and reach stackers. Allocating the remaining funds for general corporate purposes.

The book-running lead managers (BRLMs) for the Western Carriers IPO are Kotak Mahindra Capital Company Ltd and JM Financial Ltd. The equity shares are proposed to be listed on both the BSE and NSE.