IPO Watch: FabIndia, Aether Industries, 5 others get Sebi's approval to raise money from primary markets

Capital markets regulator Securities and Exchange Board of India (Sebi) has approved initial share sales by seven companies, including lifestyle retail brand FabIndia and speciality chemical company Aether Industries.

Syrma SGS Technology, Asianet Satellite Communications, Sanathan Textiles, Capillary Technologies India and Harsha Engineers International also received the watchdog's approval for their Initial Public Offerings (IPOs).

An update with the regulator on Monday showed that these companies, which filed preliminary IPO papers with Sebi during December 2021 and February 2022, obtained observations during April 27-30.

In Sebi's jargon, the observation implies the company concerned has received approval for the IPO. The Draft Red Herring Prospectus (DRHP) indicates that FabIndia's IPO will include a fresh issue of shares worth up to Rs 500 crore.

A total of 2,50,50,543 shares will be offered for sale through an Offer for Sale (OFS). Moreover, the company's promoters plan to give away more than 7 lakh shares to artisans and farmers.

An IPO is expected to cost around Rs 4,000 crore, according to market sources.

The public offering for Aether Industries consists of a fresh issue of equity shares aggregating Rs 757 crore and an OFS for up to 2,751,000 equity shares.

In addition, the company may consider issuing equity shares through a preferential offer to raise Rs 131 crore.

According to market sources, the company is expected to raise Rs 1,000 crore through its IPO.

Asian satellite communications provider Asianet Satellite Communications plans to raise Rs 765 crore through an initial share offering.

Hathway Investments is offering to sell up to Rs 465 crore worth of equity shares as part of the initial public offering.

Syrma SGS Technology's IPO entails the issuance of fresh shares worth Rs 926 crore, as well as an offer for sale of up to 33.69 lakh equity shares by Veena Kumari Tandon.

The company may also consider raising Rs 180 crore via a pre-IPO placement before filing its Red Herring Prospectus and, if that happens, the issue size will be altered accordingly.

As per the market sources, the company is looking to garner between Rs 1,000 core and Rs 1,200 crore.

The IPO of yarn manufacturer Sanathan Textiles comprises fresh issue of equity shares aggregating up to Rs 500 crore and an OFS of up to 1.14 crore equity shares by Dattani Family.

The company may consider a pre-IPO placement of equity shares aggregating up to Rs 100 crore.

According to the market sources, the issue size will be in the range of Rs 1,200-1,300 crore.

Capillary Technologies (India) Ltd, backed by Warburg Pincus and Sequoia Capital, is looking to raise Rs 850 crore through the initial share sale.

The company offers Artificial Intelligence (AI)-based cloud-native Software-as-a Solution (SaaS) products and solutions to develop loyalty of their consumers and channel partners.

The IPO consists of a fresh issue of equity shares aggregating to Rs 200 crore and an OFS of Rs 650 crore by Capillary Technologies International Pte Ltd.

Also, the company may consider a pre-IPO placement aggregating up to Rs 20 crore. If such placement is completed, the fresh issue size will be reduced.

Harsha Engineers International, manufacturer of precision bearing cages, plans to raise Rs 755 crore through its IPO.

The public issue consists of a fresh issue of equity shares aggregating to Rs 455 crore, and an OFS of up to Rs 300 crore by existing shareholders.

The equity shares of these seven companies will be listed on the BSE and NSE. 

(With Inputs from PTI)