Frontline Private Equity-backed Tejas Networks Ltd and state-owned Cochin Shipyard Ltd have received approval from the Securities and Exchange Board of India (SEBI) for their initial public offerings.
SEBI has now approved IPO plans of 11 companies in 2017, data on the capital markets regulator’s website showed.
Bangalore-based telecom equipment maker Tejas Networks had filed a draft red herring prospectus with SEBI for an IPO on 10 February. The IPO comprises a fresh issue of shares worth Rs 450 crore and an offer for sale of 12.71 million shares by founders and other shareholders including Frontline PE and Intel Capital. Frontline is fully exiting while Intel Capital is selling part of its stake.
The firm was co-founded by Gururaj ‘Desh’ Deshpande, a billionaire and brother-in-law of Infosys co-founder NR Narayana Murthy.
Tejas Networks had earlier said it planned to raise as much as Rs 150 crore by selling 6 million shares ahead of the IPO. If the pre-IPO private placement goes through, the company will reduce the IPO size.
The company reported a consolidated net profit of Rs 16.46 crore for the six months ended 30 September 2016 on net revenue from operations of Rs 350.77 crore.
Axis Capital Ltd, Citigroup Global Markets India Pvt. Ltd, Edelweiss Financial Services Ltd, and Nomura Financial Advisory and Securities (India) Pvt. Ltd are managing the IPO.
For more details of the Tejas IPO, click here.
Cochin Shipyard
The state-run company filed its DRHP on 24 March. India’s largest public-sector shipyard is looking to raise an estimated Rs 1,500 crore (around $230 million) from the public offering.
The IPO comprises a fresh issue of 22.65 million shares and an offer for sale of 11.32 million shares by the government, as per draft papers.
The government fully owns Cochin Shipyard. It will divest a 10% stake and issue fresh shares representing a 15% stake through the IPO. After the issue and listing, the government’s stake in the company will stand at 75%, in compliance with SEBI’s minimum public shareholding norms.
For the six months ended 30 September 2016, the company reported a profit after tax of Rs 184.52 crore on revenue (operations) of Rs 1,027.46 crore.
SBI Capital Markets, Edelweiss Financial Services and JM Financial Institutional Securities are managing the issue.
For more details on the IPO, click here.