The flurry of IPOs is expected to continue in the coming months as MedPlus Health Services, RateGain Travel Technologies and Puranik Builders are among the six companies that received approval from the capital markets regulator Sebi to launch their public offerings. The regulator has also approved IPO papers filed by Tracxn Technologies, Fusion Microfinance, and Prudent Corporate Advisory Services.
The observation by Sebi is a necessary step for any company to launch a fund raising plan through initial public offering, follow on public offer (FPO) and rights issue.
RateGain Travel Technologies and Fusion Microfinance filed their draft red herring prospectus on August 18 and August 11, 2021, respectively, and received the approval on November 16. The regulator approved public issues of MedPlus Health Services and Tracxn Technologies on November 17, which had both filed draft papers on August 17 each.
Prudent Corporate Advisory Services filed its DRHP on August 17 and received approval by Sebi on November 18. Puranik Builders refiled its papers on September 21, which was also approved on Thursday.
Hyderabad-based MedPlus Health Services, the second largest pharmacy retailer in India in terms of revenue and number of stores, is planning to raise Rs 1,638.71 crore via the IPO, which comprises a fresh issuance of equity shares worth Rs 600 crore and an offer for sale (OFS) of Rs 1,038.71 crore by promoter and existing shareholders including Lone Furrow Investments, and PI Opportunities Fund – I.
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The net proceeds from the fresh issue will be utilised for working capital requirements of its material subsidiary, Optival and general corporate purposes.
The IPO of real estate developer Puranik Builders consists of a fresh issue of shares worth Rs 510 crore and an offer for sale of 9.45 lakh equity shares by promoter groups. The fresh issue proceeds will be utilised towards repayment of loan and other general corporate purposes.
Travel and hospitality technology services provider RateGain Travel Technologies’ initial public offer comprises a fresh issue of of Rs 400 crore and an offer for sale of up to 2.26 crore shares by promoters and existing shareholders including Wagner, and Bhanu Chopra.
The company will use proceeds from the fresh issue to repay debt availed by subsidiary RateGain UK; payment of deferred consideration for the acquisition of DHISCO and strategic investments, acquisitions and inorganic growth.
The IPO of 3.86 crore equity shares by analytics firm Tracxn Technologies is entirely an offer for sale by promoters (Abhishek Goyal and Neha Singh) and investors. Flipkart founders Binny Bansal and Sachin Bansal, private equity fund Accel India IV (Mauritius) and venture capital fund Sequoia Capital India Advisors-owned SCI Investments V will exit the company by selling shares through the offer for sale.
Venture capital firm Elevation Capital (formerly SAIF Partners), Manoj Kumar Gandhi, Apoletto Asia, and Milliways Fund LLC will also offload their part shareholding in the company through an OFS.
US private equity firm TA Associates-backed Prudent Corporate Advisory Services’ initial public offer of 85,49,340 equity shares is also entirely an offer for sale by Wagner and Shirish Patel.
Prudent Corporate Advisory Services, an interface between asset management companies (AMCs) and mutual fund distributors (MFDs) or independent financial advisors, is one of the largest independent retail wealth management services groups (excluding banks and brokers) in India, and is among the top MFDs in terms of average assets under management (AAUM) and commission received.
Global private equity firm Warburg Pincus-backed microlender Fusion Micro Finance’s IPO comprises a fresh issuance of equity shares worth Rs 600 crore and an offer for sale of 2,19,66,841 equity shares by promoters and existing shareholders. Devesh Sachdev, Honey Rose Investment, Creation Investments Fusion LLC, Oikocredit Ecumenical Development Co-operative Society and Global Financial Inclusion Fund will offload their shares via OFS.
The net proceeds of the fresh issue will be utilised for augmenting the capital base of the the microfinance firm.
