Shapoorji Pallonji group's firm Afcons Infrastructure, 4 others get Sebi's nod to float IPOs

Five companies, including Shapoorji Pallonji group's flagship infrastructure engineering and construction company, Afcons Infrastructure Ltd (AIL), have received Sebi's go-ahead to raise funds through initial public offerings, an update with the regulator showed on Monday.

Others that have secured Sebi's clearance are Godavari Biorefineries, Shivalik Engineering Industries Ltd, Quadrant Future Tek and Enviro Infra Engineers.

These five firms, which had filed their preliminary IPO papers with Sebi between March and June, obtained their observations from September 5-13, the update showed.

In market parlance, obtaining an observation letter from Sebi means its go-ahead to float the public issue.

Going by the draft papers, Afcons Infrastructure Ltd's Rs 7,000-crore proposed IPO is a combination of a fresh issue of shares worth Rs 1,250 crore and an offer for sale (OFS) of up to Rs 5,750 crore by a promoter Goswami Infratech Pvt Ltd.

Currently, promoter and promoter group entities own a 99.48 per cent stake in Maharashtra-based Afcons Infrastructure.

Proceeds from the fresh issue to the extent of Rs 150 crore will be used for capital expenditure towards the purchase of construction equipment; Rs 350 crore for funding long-term working capital requirements; Rs 500 crore for prepayment or scheduled repayment of a portion of certain outstanding borrowings and acceptances availed by the company; and general corporate purposes.

Ethanol and bio-based chemicals maker Godavari Biorefineries Ltd's proposed initial share sale is a combination of fresh issue of equity shares worth Rs 325 crore and an Offer-for-Sale (OFS) of 65.27 lakh equity shares by promoters and an investor according to the draft red herring prospectus (DRHP).

Private equity firm Mandala Capital AG Ltd is offloading 49.27 lakh shares through the OFS route.

Precision engineering company Shivalik Engineering Industries Ltd's IPO is a mix of fresh issue of shares worth Rs 335 crore and an offer for sale of up to 41.3 lakh equity shares by promoters and other shareholders, as per the draft papers.

Quadrant Future Tek, which had filed draft papers with Sebi in June, is aiming to raise Rs 275 crore through its IPO which consists of entirely fresh issue.

The IPO of Enviro Infra Engineers, which is involved in the development of turnkey projects of sewage treatment plants and sewerage system, is a combination of fresh issue of a 4.42 crore equity shares and an OFS component of 52.68 lakh shares by promoters, according to the draft papers.

On the other hand, the regulator has returned through draft papers of Armee Infotech, an Ahmedabad-based IT Infrastructure solutions company. The regulator received its draft papers in early July.

The company's proposed IPO was completely a fresh issuance of equity shares worth Rs 250 crore with no offer-for-sale component.