In a fresh development in the primary market, Securities and Exchange Board of India (SEBI) has given nod to four companies to raise capital through the initial public offering (IPO) route. These companies are Akums Drugs and Pharmaceuticals, Gold Plus Glass Industry, Ceigall India Limited, and Orient Technologies. These companies had filed their draft red herring prospectus (DRHP) with the capital market regulator in February this year, while observations were received between June 29 and July 2, 2024. Shares of all these four companies will be listed on the BSE and NSE.
In the first half of the current year (H1 CY24), 34 Indian corporates raised ₹31,279 crore through IPOs, which is nearly four times than the ₹8,070 crore mobilised by 9 IPOs in the same period last year, as per the exchange data.
Here’s all you need to know about these 4 IPOs:
Akums Drugs and Pharmaceuticals
The IPO of the Delhi-based pharma company is a combination of a fresh issue of equity shares worth ₹680 crore and an offer-for-sale (OFS) of 1.86 crore shares by promoters and an existing investor. Besides, The company looks to raise ₹136 crore through a pre-IPO placement. If such placement is undertaken, then the fresh issue size may be reduced.
Incorporated in 2004, Akums is one of the leading contract manufacturing pharma companies, offering pharmaceutical products and services in India and overseas. The company intends to use IPO proceeds from fresh equities to repay debt, meet working capital requirements, and acquisitions for inorganic growth, and for general corporate purposes.
Gold Plus Glass
The public issue of float glassmaker Gold Plus Glass Industry is a mix of equity shares worth up to ₹500 crore and an OFS of up to 1.56 crore shares by promoters and investor shareholders. This is the second attempt by the Delhi-based company to list its shares on the domestic exchanges after it withdrew in 2022.
Formed in 1985, Gold Plus Glass Industry is one of leading manufacturers and suppliers of high-quality float glasses in the country, holding a 22% manufacturing capacity share as of September 2023. It operates three fungible production lines, capable of producing both clear glass and value-added glass, with an aggregate capacity of 2,050 tonnes per day (TPD) across two locations i.e at Roorkee, Uttarakhand, and Belgaum, Karnataka. It caters to a range of end use industries including construction, automotive, and industrial sectors.
Ceigall India
The IPO of the infrastructure construction company consists of a fresh issue of ₹617.69 crore and an offer for sale of up to 14.28 million equity shares by the promoter and promoter group selling shareholders and individual selling shareholders. The proceeds from the fresh issue will be used for the purchase of equipment, repayment of debt availed by the company and its subsidiary, as well as to meet general corporate purposes.
Ceigall India was established in July 2002 and over the past two decades has evolved from a small construction firm to a prominent player in engineering, procurement, and construction (EPC), specialising in the design and development of various road and highway projects. It has completed over 34 projects, including 16 EPC and one HAM project, in the roads and highways sector. Currently, it is involved in 15 ongoing projects, comprising 11 EPC projects and four HAM projects, encompassing elevated corridors, bridges, flyovers, rail overbridges, tunnels, expressways, runways, and multi-lane highways.
Orient Technologies
The Mumbai-based information technology (IT) solutions provider had filed its IPO papers with the SEBI on February 20, 2024. The public offer comprises ₹120 crore and an offer for sale of up to 4.6 million equity shares by the promoter selling shareholders.
The proceeds from the fresh issue will be used for funding its capital expenditure requirements, acquisition of office premises at Navi Mumbai, and general corporate purposes.
Orient Technologies commenced its business in 1997 and was co-founded by Ajay BaliramSawant, JayeshManharlal Shah, Ujwal Arvind Mhatre, and UmeshNavnitlal Shah. Over the years, the company has developed deep expertise in creating products and solutions for specialized disciplines across IT Infrastructure, IT Enabled Services (IteS) and Cloud and Data Management Services. It collaborates with top technology companies like Dell, Fortinet, and Nutanix to offer advanced solutions tailored to meet the specific needs of their customers. As of December 31, 2023, Orient Technologies' order book stood at ₹ 92.75 crore.
