Water purifier firm Kent RO, Karamtara Engineering, 2 others get Sebi nod to float IPOs

New Delhi: As many as four firms, including water purifier company Kent RO Systems and Karamtara Engineering, have received Sebi's go ahead to raise funds through an initial public offering (IPO), an update with the markets regulator showed on Tuesday.

The other two firms that received the regulatory nod to float initial share sales are transformer components manufacturer Mangal Electrical Industries and winding and conductivity products maker Vidya Wires.

Together, these firms are expected to raise at least Rs 2,500 crore through maiden public offerings.

The four firms, which filed their preliminary IPO papers in January, obtained Sebi's observations during June 3-6, the update showed.

In Sebi's parlance, obtaining its observations means go-ahead to launch public issues.

Meanwhile, Sai Infinium withdrew its IPO documents on June 4.

As for Kent RO Systems' IPO, its issue is completely an offer of sale (OFS) of 1 crore equity shares by promoters, according to the draft red herring prospectus (DRHP).

Since it is an OFS, the company will not receive any proceeds from the IPO.

Karamtara Engineering's proposed IPO is a combination of a fresh issue of shares valued at Rs 1,350 crore and an offer for sale (OFS) of shares worth Rs 400 crore by promoters.

Proceeds of the fresh issue to the tune of Rs 1,050 crore will be used towards payment of debt and a portion will be utilised for general corporate purposes.

The Rs 450-crore IPO of Mangal Electrical Industries is completely a fresh issue of shares with no offer for sale (OFS) component, according to the draft papers.

Proceeds from the fresh issue to the tune of Rs 122 crore will be used for funding working capital requirements of the company, Rs 120 crore for expanding the facility at Sikar, Rajasthan, along with civil works at head office in Jaipur, Rajasthan, to increase storage capacity and Rs 96 crore for payment of debt, and general corporate purposes.

Vidya Wires' IPO comprises a fresh issue of equity shares aggregating up to Rs 320 crore by the company, and an OFS of up to 1 crore equity shares by promoters.

The company proposes to utilise the net proceeds towards funding capital expenditure requirements for setting up new projects in subsidiary ALCU, payment of debt, and general corporate purposes.

Shares of these companies will be listed on the BSE and the NSE.