NEW DELHI: Market regulator SEBI has given approval to float IPOs to FabIndia and six other companies- Asianet Satellite Communications, Aether Industries, Syrma SGS Technology, Sanathan Textiles, Capillary Technologies India and Harsha Engineers International.
These firms had filed their preliminary IPO (initial public offering) papers with Sebi between December 2021 and February 2022 and obtained observation between April 27-30. In the regulator’s term, its observation implies the company concerned has received the approval to launch the IPO.
The approval comes on the close hills of India’s biggest IPO that will launched by state-owned insurance giant LIC. It also comes after positive response received by the IPOs of Campus Activewear and Rainbow Children Medicare.
Sebi’s document also shows that it is yet to issue its observation (or give approval) to as many as 49 companies. This includes much hyped names such as Aadhar Housing Finance, Lava International, Oravel Stays (Oyo Rooms), Droom, Snapdeal, EbixCash, Yatra, Biba Fashions and Senco Gold. Oyo had filed its draft paper in September 2021 and at present its processing status shows that its IPO is ‘under process’.
Ethenic lifestyle brand FabIndia had filed its draft paper in January to raise Rs 4,000 crore through an initial public offer. The offer include fresh issue of shares worth up to Rs 500 crore. Besides, there will be an offer for sale (OFS) of up to 2,50,50,543 shares.The company’s promoters also plan to gift more than seven lakh shares to artisans and farmers.
According to filing, proceeds from the fresh issue of shares will be utilised for voluntary redemption of the company’s NCDs (Non Convertible Debentures), pre-payment or scheduled re-payment of a portion of certain outstanding borrowings and general corporate purposes.