From Jana Small Finance Bank to DOMS Industries — 5 new companies get SEBI nod to go public

Five companies, including India Shelter Finance (an affordable housing finance company), DOMS Industries (a pencil maker), and Jana Small Finance Bank (a lender), have received approval from the capital markets regulator Sebi, to raise funds through initial public offerings (IPOs).

Also read: India Shelter Finance files for ₹1,800 crore IPO paper with Sebi

Two additional companies that received approval from the regulator to launch their initial public offerings are Shiva Pharmachem, based in Vadodara, and Onest Ltd, a fast-moving consumer goods (FMCG) company.

Five companies had submitted initial public offering (IPO) documents or draft papers to the regulator from July to August received observation letters between November 7 and 16, according to a Tuesday update from the Sebi.

Also read: Shiva Pharmachem files DRHP to raise ₹900 crore via IPO

In Sebi’s terminology, securing observation letters implies approval to initiate the IPO. Based on the preliminary documents, India Shelter Finance’s proposed ₹1,800-crore IPO involves a fresh issuance of equity shares valued at ₹1,000 crore and an ₹800 crore Offer for Sale (OFS) by investor shareholders.

Participating in the OFS are entities such as Catalyst Trusteeship Ltd, Madison India Opportunities IV, MIO Starrock, Nexus Ventures III Ltd, and Nexus Opportunity Fund II Ltd. Supported by Westbridge Capital and Nexus Venture Partners, India Shelter Finance intends to use the funds from the fresh issue for future capital needs in lending and general corporate purposes.

The debut public offering of the pencil manufacturer comprises a fresh issue of up to ₹350 crore and an OFS of up to ₹850 crore by promoters, as outlined in the draft red herring prospectus (DRHP). Within the OFS, corporate promoter F.I.L.A. — Fabbrica Italiana Lapis ed Affini S.p.A. — will divest shares worth ₹800 crore, while individual promoters Sanjay Mansukhlal Rajani and Ketan Mansukhlal Rajani will each sell shares amounting to ₹25 crore.

Also read: Pencil maker DOMS files DRHP with SEBI to raise ₹1,200 crore via IPO

The fresh issue proceeds will be directed towards establishing a new manufacturing facility to expand the production capabilities for various writing instruments, watercolour pens, markers, and highlighters, alongside general corporate purposes.

Jana Small Finance Bank’s IPO encompasses a fresh issue of shares up to ₹575 crore and an OFS of up to 4,051,516 equity shares by existing investors. Among those participating in the OFS are Client Rosehill Ltd, CVCIGP II Employee Rosehill Ltd, Global Impact Funds, S.C.A., SICAR, Sub-Fund Global Financial Inclusion Fund, Growth Partnership II Ajay Tandon Co-Investment Trust, Growth Partnership II Siva Shankar Co-Investment Trust, and Hero Enterprise Partner Ventures.

Also read: Jana Small Finance Bank IPO: Lender files papers with SEBI for ₹575-crore issue

The net proceeds from the fresh issue will be utilized by the small finance bank to reinforce its Tier 1 capital base for future capital requirements such as organic growth and expansion.

Shiva Pharmachem’s IPO is entirely an OFS of up to ₹900 crore by promoters. Since the IPO solely consists of an OFS, all proceeds will go to the selling shareholders, with the company not receiving any funds from the issue.

The initial share offering of Onest includes a fresh issue of ₹77 crore and an OFS of up to 32.5 crore shares by a promoter and other selling shareholders. The fresh issue proceeds, amounting to ₹60 crore, will be used to fund the company’s working capital requirements, with a portion allocated for general corporate purposes.