Muthoot Microfin, Flair Writing Industries, Happy Forgings receive Sebi's nod to float IPOs

Capital market regulator Securities and Exchange Board of India (Sebi) has given approval to three companies — Muthoot Microfin, Flair Writing Industries, and Happy Forgings — to raise funds through initial public offerings (IPOs). An update on Sebi's website showed on Monday that Muthoot Microfin's Draft Offer Document was received on July 1, and the observation letter was issued on October 26. Silimarly, the Draft Offer Document for Flair Writing Industries was received on July 17, and the observation letter was issued on October 23; while the Draft Offer Document for Happy Forgings was received on August 17, and the observation letter was issued on October 27.

In Sebi's parlance, obtaining an observation letter means it is the go-ahead to launch the public issue. Shares of these three companies are proposed to be listed on the NSE and BSE.

As per the draft papers, Muthoot Microfin's public issue will comprise a fresh issue worth up to Rs 950 crore and an offer for sale (OFS) to the tune of Rs 400 crore.

Through the OFS route, various stakeholders plan to offload shares worth Rs 400 crore. While Greater Pacific Capital WIV Ltd proposes to offload equities worth up to Rs 100 crore, Thomas John Muthoot, Thomas Muthoot and Thomas George Muthoot plan to sell shares aggregating up to Rs 70 crore each.

Besides, shares valued up to Rs 30 crore are planned to be offloaded, each by Preethi John Muthoot, Remmy Thomas and Nina George.

The company, part of the Muthoot Pappachan Group, recorded a gross loan portfolio of Rs 9,208.29 crore as of March 31.

The Rs 745-crore IPO of Pen maker Flair Writing Industries Ltd comprises a fresh issue of equity shares, aggregating up to Rs 365 crore and an offer-for-sale of equity shares worth up to Rs 380 crore by promoters and promoter group entities, according to the draft red herring prospectus (DRHP).

Those offering shares in the OFS are -- Khubilal Jugraj Rathod, Vimalchand Jugraj Rathod, Nirmala Khubilal Rathod, Manjula Vimalchand Rathod, Rajesh Khubilal Rathod, Mohit Khubilal Rathod, Sumit Rathod; Sangita Rajesh Rathod; Shalini Mohit Rathod and Sonal Sumit Rathod.

At present, promoters and promoter group entities own a 100 per cent stake in the company.

The company, which owns the over 45-year-old flagship brand "Flair", is among the top three players in the overall writing instruments industry with a market share of about nine per cent as of March 2023.

Auto components maker Happy Forgings Ltd's IPO comprises a fresh issue of equity shares worth Rs 500 crore and an offer for sale (OFS) of up to 80.55 lakh shares by a promoter and a selling shareholder.

As part of the OFS, 53.7 lakh equity shares will be offloaded by Paritosh Kumar Garg (HUF) and up to 26.85 lakh equity shares by India Business Excellence Fund - III.

Ludhiana-based Happy Forgings employs a vertically integrated approach encompassing engineering, process design, testing, manufacturing, and supply of diverse components.

Among its notable customers are Ashok Leyland, JCB India, Mahindra & Mahindra, SML ISUZU, and Tata Cummins.

(With Agency Inputs)