Curated By: Business Desk
Last Updated: September 27, 2023, 16:01 IST
Fincare Small Finance Bank and Western Carriers (India) Ltd, have got approval from the Securities and Exchange Board of India (SEBI) to proceed with their plans to raise funds through initial public offerings (IPOs). Both companies submitted preliminary IPO papers to the SEBI between May and June. Now, the market regulator has given a go ahead for the launch of the IPOs.
For the unversed, receiving an observation letter from SEBI signifies that the company has clearance to proceed with the public issue.
Western Carriers (India) Ltd, the country’s largest multi-modal asset-light logistics company, had submitted its draft red herring prospectus (DRHP) with SEBI in June and it received the approval for IPO on September 22.
On the other hand, Fincare Small Finance Bank had submitted its DHRP with the market regulator in May. The Small Finance Bank received the observation letter from SEBI on September 15. The bank’s IPO includes a fresh issuance of equity shares worth Rs 625 crore and an Offer for Sale (OFS) of 1.7 crore equity shares held by promoters and investors.
Entities selling shares in the OFS include promoter Fincare Business Services Ltd, along with some investors like Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd, and Leapfrog Rural Inclusion (India) Ltd. Besides, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd, and Zuno General Insurance (formerly known as Edelweiss General Insurance Company).
On the other hand, Western Carriers’ initial public issue consists of a fresh issue of shares worth Rs 500 crore and an OFS of 93.29 lakh shares by promoter Rajendra Sethia.
As per the reports, the Kolkata-based bank will use its net fresh issue proceeds to repay debts of a total of Rs 200.24 crore. Moreover, it will also use them for capital expenditure for commercial vehicles including 40-foot specialised containers and 20-foot normal shipping containers. The remaining funds will be utilised by the company for other corporate purposes.