State-owned Indian Renewable Energy Development Agency (IREDA) and Kolkata-based firm Shyam Steel Industries have received markets regulator Sebi's approval to float initial public offerings.
IREDA, which filed its draft IPO papers with the regulator in July, received its observations on September 27, latest update with the Securities and Exchange Board of India (Sebi) showed.
Shyam Steel has got observations of the markets watchdog on September 20. It had approached Sebi with its IPO papers in June.
The observations are very important to any company for launching public issues like initial public offer (IPO), follow-on public offer (FPO) and rights issue.
As per the draft papers, the IREDA's IPO comprises sale of 13.9 crore shares or about 15 per cent stake of the company. The issue includes a reservation of up to 6.95 lakh equity shares for the employees.
Earlier in December 2017, the company had filed its IPO and had received a go-ahead from the regulator in February 2018. However, the state-owned firm could not launch their share sales due to tepid market condition.
IREDA, a public financial institution established in March 1987, is registered as a non-banking financial company with the Reserve Bank of India. Since its inception, it has played a key role in supporting and facilitating the policies and programme of the Ministry of New and Renewable Energy.
Shyam Steel's IPO consists of fresh issue of up to Rs 200 crore and an offer for sale of up to 66.70 lakh shares, comprising up to 11.60 lakh shares by the promoter and up to 55.09 lakh shares by other shareholders, according to the Draft Red Herring Prospectus (DRHP).
Merchant banking sources said the IPO size is estimated to be around Rs 500 crore.
It plans to utilise the net proceeds towards repayment of certain borrowings of the company as well as its subsidiary Shyam Steel Manufacturing and for other general corporate purposes.
Shyam Steel is a thermo mechanically treated rebar (TMT Rebar) player having integrated steel plants. The company operates all its steel manufacturing plants in West Bengal.
First Published: IST