MUMBAI: Three large IPO plans from the Coal India arm Bharat Coking Coal, Canara HSBC Life Insurance and precision engineering components maker Aequs, which are collectively looking to raise Rs 10,500 crore, have received observation letters from the capital markets regulator Sebi.
Bharat Coking Coal, which is the largest coking coal producer in the country, supplying as much as 58.50% percent of domestic coking coal demand in FY25, is looking to raise Rs 5,000 crore which will be purely an OFS by the parent Coal India, whose Rs 15,200-crore IPO in October 2010 is among the top 10 issues.
The issue will involve the sale of up to 46.57 crore shares by Coal India, according to its updated papers. Bharat Coking Coal, the wholly-owned subsidiary of national largest coal miner Coal India, had filed draft papers with the regulator in late May.
The Belgavi-based contract manufacturer of precision engineering components Aequs has also received approval for its confidential IPO filing through which it seeks to raise Rs 1,500 crore through a mix of fresh issue and OFS.
As per the processing status of draft offer documents published by Sebi on September 22, while it issued the observation letter to Aequs on September 18, it had given the same to Canara HSBC Life and Bharat Coking Coal on September 15 and 19, respectively.
The issuance of an observation letter allows a company to launch its IPO within the next one year by filing a prospectus with the Registrar of Companies, while in case of pre-filing or confidential IPO filing, the company can file its updated papers with Sebi within the next one year to incorporate any observations and then proceed with the IPO.
Aequs, which manufactures aero-engine and aero-structure components for aerospace clients, pre-filed papers with Sebi in June.
It operates in three engineering-led vertically-integrated precision manufacturing ecosystems, which enable it to produce complex products for global OEM customers across the aerospace and consumer sectors.
Aequs has one of the largest portfolios of aerospace products in the country with consumer electronics, plastics, and consumer durables. Its diverse consumer product portfolio includes consumer durables such as cookware and small home appliances, and components for consumer electronics such as portable computers and smart devices.
Its key clients include Airbus, Boeing, Bombardier, Collins Aerospace, Spirit Aerosystems Inc, Safran, GKN Aerospace, Mubea Aerostructures and Sabca, and, Spinmaster, Wonderchef, and Tramontina in the consumer segment.
Aequs commenced manufacturing of aero-structure components and aero-engine components for aerospace clients in units in Belagavi in 2009.
The private life insurer Canara HSBC Life Insurance Company, a subsidiary of Canara Bank, filed the DRHP with the regulator in late April. The public issue consists of entirely an offer-for-sale of up to 23.75 crore equity shares with no fresh issue component, indicating the entire offer proceeds will go to the selling shareholders and may mop up Rs 4,000 crore, according to sources.
Promoters Canara Bank and HSBC Insurance Asia-Pacific Holdings, and investor Punjab National Bank will be the selling shareholders in the IPO, which hold 51%, 26%, and 23% respectively in the insurance company.