Meesho, Shiprocket among seven companies to get Sebi’s nod to launch IPOs

As many as seven companies, including Softbank-backed e-commerce firm Meesho and Temasek-backed e-commerce platform Shiprocket, have secured Sebi’s approval to collectively raise nearly Rs 7,700 crore through initial public offerings (IPO), an update from the market regulator said on Monday.Others that have received regulatory approval include German Green Steel and Power, Allied Engineering Works, Skyways Air Services, Rajputana Stainless and Manika Plastech.

All seven companies, which filed their preliminary IPO papers with Sebi between May and July, obtained their observations between October 14 and October 31, the update showed.In regulatory terms, Sebi’s observation amounts to approval for launching a public issue.

The approval comes at a time when the Indian market is experiencing a boom in primary market activity. By 2025, a total of 86 companies have already tapped the motherboard market through initial public offerings, and a number of releases are scheduled for this week, including Groww and Pine Labs.

Together, these seven companies are targeting revenues of around Rs 7,700 crore. Meanwhile, Bombay Coated and Special Steels withdrew their draft IPO papers on October 30, while Sebi returned Vishal Nirmiti’s preliminary IPO papers on the same day. According to the draft documents, Meesho’s proposed IPO includes a fresh issue of shares aggregating Rs 4,250 crore and an offer for sale (OFS) of 17.57 crore shares by certain existing shareholders.

The OFS includes stake sales by some of Meesho’s early investors, including Elevation, Peak XV, Venture Highway and Y Combinator, among others.

Meesho intends to use the net proceeds for investments in cloud infrastructure in Meesho Technologies Private Limited, payment of salaries of existing and replacement employees for the machine learning and AI and technology teams for AI and technology development undertaken by Meesho, expenditure on marketing and branding initiatives and financing inorganic growth through acquisitions and other strategic initiatives and general corporate purposes.

Shiprocket is looking to raise around Rs 2,000-2,500 crore through the public issue, according to sources.

Meesho and Shiprocket filed their IPO papers through a confidential pre-filing route. This route allows companies to defer the disclosure of details related to the draft Red Herring Prospectus (DRHP) until a later stage.

Gujarat-based German Green Steel and Power plans to raise money through its initial public offer, comprising a fresh issue of shares worth Rs 450 crore. In addition, there would be an OFS of 20 lakh shares by promoters.

The company stated that the money will be used to expand its manufacturing facility in Gujarat and set up a hybrid wind and solar power plant, as well as debt repayment.

Smart energy meter manufacturer Allied Engineering Works aims to mobilize Rs 400 crore through fresh issue of shares along with an OFS of 75 lakh shares by the promoter.

Proceeds from the new issue will be used to set up production facilities and support the company’s future working capital needs.

The IPO of air freight forwarding and logistics company Skyways Air Services is a mix of fresh issue of 32.92 million shares and OFS of 13.33 million shares by promoters and other selling shareholders.

Funds from the new issue will be used to service debt, finance increasing working capital needs and general corporate purposes.

The proposed IPO of Rajputana Stainless will consist of a fresh issue of up to 1.46 crore shares and an OFS of 62.5 lakh shares by the promoter. New capital raised from the IPO will be used to finance capital expenditures, debt repayment and general corporate purposes.

The IPO of Mumbai-based Manika Plastech is a combination of a fresh issue of shares worth Rs 115 crore and an OFS of 1.50 crore shares. Funds will be set aside for capital expenditure to purchase plants and machinery and repay debts.