LEAP India, Eldorado Agritech and three others get the nod from Sebi to make IPOs

As many as five companies, including supply chain asset pooling firm LEAP India and Eldorado Agritech, have secured Sebi’s approval to raise money through initial public offerings (IPOs), an update from the regulator showed on Tuesday.Other companies that have received regulatory approval include Molbio Diagnostics, backed by Temasek and Motilal Oswal Private Equity; Foodlink F&B Holdings (India), a catering and food retail chain; and Technocraft Ventures, a provider of wastewater treatment solutions.

All five companies, which filed their preliminary IPO documents between June and September, received the regulator’s observations between November 25 and December 5, the update showed.In Sebi language, receiving observations is equivalent to a green light to proceed with a public issue.

On the other hand, two companies – Inox Clean Energy and Sky Alloys and Power – withdrew their respective IPO papers on December 5.

According to industry sources familiar with the development, Inox Clean Energy has temporarily withdrawn its draft papers after raising around Rs 5,000 crore in a pre-IPO funding round, prompting the company to withdraw its preliminary filings.

However, the company is expected to refile its IPO papers after incorporating the latest funding data into its financials, they added. Sky Alloys & Power had proposed to raise funds through its IPO comprising a total of 1.79 crore shares, according to the draft documents.

In the LEAP India case, the initial public offering of Rs 2,400 crore is a combination of a fresh issue of shares up to Rs 400 crore and an offer-for-sale (OFS) of shares worth Rs 2,000 crore by Vertical Holdings II Pte. Ltd and KIA EBT Scheme 3, the draft documents showed.

Proceeds from the fresh issue worth Rs 300 crore will be used for servicing debt, and the rest will be used for working capital needs.

The Rs 1,000 crore IPO of Eldorado Agritech, known for its Srikar Seeds brand, includes fresh issue of shares worth Rs 340 crore and OFS of shares aggregating by promoters up to Rs 660 crore.

The Telangana-based seed-to-crop solutions provider plans to utilize Rs 245 crore from the fresh issue for debt servicing and general corporate purposes.

The Molbio Diagnostics IPO involves a fresh issue of shares for an aggregate amount of Rs 200 crore and an OFS of 1.25 crore shares by existing shareholders.

The company plans to use Rs 99.3 crore from the net proceeds to set up infrastructure for a new research and development facility, a Center of Excellence and connected office space.

The IPO of Foodlink F&B Holdings is a mix of a fresh issue of shares worth Rs 160 crore and an OFS of over 1.19 crore shares by promoters and investor selling shareholders.

The company plans to use the proceeds from the new issue to set up two new centralized kitchens and invest in its material subsidiary, Foodlink Global Restaurants & Catering Services, to set up four new casual dining restaurants.

It operates 30 casual restaurants and cloud kitchens through flagship brands such as India Bistro, Art of Dum, China Bistro and Glocal in India and the United Arab Emirates.

The IPO of Technocraft Ventures consists of a fresh issue of up to 95.05 lakh shares and an OFS of 23.76 lakh shares by promoter Kartikey Constructions.

Proceeds from the fresh issue worth Rs 138 crore will be used to fund the company’s working capital needs and the balance for general corporate purposes, according to the draft documents.