SEBI Approves 5 IPOs, Including Bajaj Housing Finance

6 Aug 2024 , 09:30 AM

The Securities and Exchange Board of India (SEBI) has granted approval for five companies to proceed with their initial public offerings (IPOs). The companies include Bajaj Housing Finance, Baazar Style Retail, Diffusion Engineers, Deepak Builders, and Manba Finance. This approval, marked by the issuance of observation letters, allows these companies to move forward with their fundraising plans in the capital markets.

Bajaj Housing Finance: Raising ₹7,000 Crore

Bajaj Housing Finance received its observation letter from SEBI on August 5, paving the way for its IPO. The company had filed its draft red herring prospectus (DRHP) with SEBI in June 2024. The IPO aims to raise ₹7,000 Crore, consisting of a fresh issue of ₹4,000 Crore worth of shares and an offer-for-sale (OFS) of ₹3,000 Crore worth of shares by the promoter, Bajaj Finance. The proceeds from the fresh issue will be used to strengthen the mortgage lender’s capital base and support future lending activities.

Deepak Builders and Engineers India: Addressing Debt and Working Capital

Deepak Builders and Engineers India received SEBI’s observation letter on July 31. The company had submitted its draft papers in April 2024. The engineering and construction firm plans to utilize the funds raised from the fresh issue primarily for repaying debt and meeting working capital needs.

Baazar Style Retail: Expanding in the Retail Market

Kolkata-based Baazar Style Retail plans to raise ₹185 Crore through its IPO, which includes a fresh issue component and an offer-for-sale of 1.68 Crore shares. The largest shareholder, Rekha Rakesh Jhunjhunwala, who holds a 7.8% stake, along with other shareholders, will participate in the OFS. The fashion retailer, a leader in the organized value retail market in West Bengal and Odisha, intends to use the proceeds for debt repayment and general corporate purposes. The company’s draft papers were filed with SEBI in March 2024, and they received the observation letter on July 30.

Diffusion Engineers: Enhancing Manufacturing Capabilities

Nagpur-based Diffusion Engineers received SEBI’s observation letter on July 30. The company filed its IPO papers in April 2024, planning to issue 98.47 lakh equity shares solely as a fresh issue. The funds raised will be used to expand the existing manufacturing facility in Khasra, Nagpur, establish a new facility in Hingna, Nagpur, and meet working capital and general corporate needs. Diffusion Engineers specializes in providing repair and reconditioning services for heavy machinery and equipment.

Manba Finance: Strengthening Capital Base

Maharashtra-based Manba Finance, a non-banking finance company (NBFC), also received its observation letter on July 30. The company filed its IPO papers in March 2024, proposing a purely fresh issue of 1,25,70,000 equity shares without an OFS component. Fully owned by the promoter group, Manba Finance provides loans for new vehicles, used cars, small businesses, and personal purposes. The IPO proceeds will be used to augment the NBFC’s capital base, supporting future lending activities.

SEBI’s Recent Actions

In addition to these approvals, SEBI returned the offer documents of Sanathan Textiles on July 31. The yarn products manufacturer had refiled its preliminary papers in April 2024, aiming to raise ₹800 Crore through an IPO. Meanwhile, SEBI has lifted the abeyance on SK Finance’s ₹2,200 Crore initial public offering.