NEW DELHI: As many as eight firms including defence equipment manufacturer SMPP, Aditya Infotech, Brigade Hotel and PVC blend-based building material maker Kumar Arch Tech have received market regulator Securities and Exchange Board of India’s (SEBI) go ahead to raise funds through Initial Public Offerings (IPOs).
Other companies that have received SEBI’s approval include Solarworld Energy Solutions, Indogulf Cropsciences, Globe Civil Projects, and Prostarm Info Systems, an update with the markets regulator showed on Tuesday.
Together, these firms aim to raise more than `7,800 Crore, merchant bankers said.
So far in 2025, six companies floated their maiden public issues. This came after the primary market witnessed a remarkable year when 91 IPOs were launched collectively raising `1.6 Lakh Crore.
Going by the update on Tuesday, SEBI received preliminary IPO documents from eight firms between October and November, and issued its observations during January 28-31.
In SEBIs parlance, obtaining the observations means its go ahead to float the public issue.
Meanwhile, auto component maker Viney Corporation withdrew its draft IPO papers on January 27 without giving a reason. The preliminary documents were filed in October.
As for SMPP Ltd, its `4,000-Crore IPO includes a fresh issue of equity shares worth up to `580 Crore and an offer-for-sale (OFS) of shares worth up to `3,420 Crore by promoter Shiv Chand Kansal, according to the draft papers.
At present, Kansal holds a 50 per cent stake in the company.
Proceeds from the fresh issue will be utilised primarily for capital expenditure of `437.04 Crore, which includes constructing buildings, land development, and procuring plant and machinery for a planned ammunition manufacturing facility through an investment in a subsidiary. The remaining amount will be allocated for general corporate purposes.
Aditya Infotech’s proposed IPO is a combination of a fresh issue of equity shares worth `500 Crore and an OFS of shares valued `800 Crore by promoters, as per the draft papers.
Proceeds from the fresh to the tune of `375 Crore have been earmarked for payment of debt and besides a portion will be used for general corporate purposes.
Brigade Hotel Ventures is looking to raise `900 Crore through a fresh issue of equity shares.
Proceeds from the issue to the tune of `481 Crore will go towards payment of debt, `412 Crore will be allocated to the company and `69 Crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd.
Additionally, `107.52 Crore will be used to purchase an undivided share of land from the promoter, BEL, and the remaining funds will support acquisitions, other strategic initiatives, and general corporate purposes.
Kumar Arch Tech’s IPO is a mix of fresh issuance of shares worth `240 Crore, and an OFS of `500 Crore by promoters.
With inputs from PTI
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