NEW DELHI: Amid the market crash, two firms have filed papers with capital market regulator SEBI to raise funds. Mumbai-based Suraj Estate Developers has filed preliminary papers with SEBI to rake in Rs 500 crore through an initial public offering (IPO) while Noida-based India Exposition Mart, a leading integrated exhibitions and conventions venue, has filed a preliminary prospectus with the regulator to raise Rs 600 crore via IPO.
According to the draft red herring prospectus (DRHP)filed by Suraj Estate Developers, the funds will be raised through fresh issuance of equity shares.
It said that the funds to the tune of Rs 315 crore will be used for payment of the borrowings of the company and its subsidiaries — Accord Estates, Iconic Property Developers, and Skyline Realty. Around Rs 45 crore will be utilised for the acquisition of land or land development rights, besides, money will be used for general corporate purposes. At present, the promoter and promoter group holds around 95% stake in the company. Centrum Capital and Anand Rathi Advisors are the books running leads managers to the issue.
India Exposition Mart’s initial share sale comprises a fresh issue of Rs 450 crore and an offer-for-sale (OFS) of 1.12 crore equity shares by selling shareholders. Those offering shares in the OFS include Vectra Investments, MIL Vehicles & Technologies, Overseas Carpets, RS Computech, Navratan Samdaria, Dinesh Kumar Aggarwal and Pankaj Garg. The firm does not have any promoter as all shareholders are under the ‘public category’.
As per sources, the company may consider a private placement of equity shares aggregating up to Rs 75 crore. If such pre-IPO placement is undertaken, the fresh issue size will be reduced. The filings by the two firms come at a time when the global equity market is witnessing a major crash.