New IPOs Alert: Duroflex, Hexagon Nutrition, Virupaksha Organics, 2 others get SEBI's approval to launch public offers

New IPOs Alert: Market regulator Securities and Exchange Board of India has given its nod to five companies to launch their initial public offerings (IPOs). They include ferro alloy power maker Premier Industrial Corporation, mattress manufacturer Duroflex, pharmaceutical player Virupaksha Organics, nutraceutical company Hexagon Nutrition and electrical contracting company Om Power Transmission.

The five companies had filed their draft red herring prospectuses with SEBI between September and October last year. They received market regulator's observations between February 10 and 13. In SEBI's parlance, receipt of observations means companies can proceed with their public issues.

Premier Industrial Corporation IPO

The proposed IPO of Premier Industrial Corporation consists of a fresh issuance of up to 2.25 crore shares and an offer for sale (OFS) of up to 54 lakh shares.

The company will use the fresh issue proceeds for establishing a new wire manufacturing facility at Honad, Khalapur, Raigad (Maharashtra) and for expanding its existing facility at Wada, Palghar (Maharashtra) by increasing the capacity of certain products.

Funds will also be allocated towards working capital and general corporate purposes. In addition, the company may consider a pre-IPO placement of up to ₹30 crore, which, if undertaken, will reduce the size of the fresh issue.

Premier Industrial Corporation Ltd is among the fastest-growing manufacturers in both powders and wires categories of the welding consumables industry.

Duroflex IPO

The proposed IPO of mattress maker Duroflex comprises a fresh issue of shares aggregating to ₹183.6 crore and an OFS of up to 2.25 crore shares by promoters and existing investors.

As part of the OFS, Jacob Joseph George, Mathew Chandy, Mathew George, and Mathew Antony Joseph will divest a portion of their shareholdings.

Mumbai-based Lighthouse Funds, through its affiliates, will also sell its holding in the sleep solutions company Duroflex.

The company plans to utilise the proceeds from the fresh issue towards setting up 120 new company-owned company-operated (COCO) stores, meeting lease, sub-lease rent, and license fee obligations for existing COCO stores and the manufacturing facility, funding marketing and advertising initiatives to enhance brand visibility, and general corporate purposes.

Duroflex, founded in 1963, is among the top three mattress companies in India by market share, and operates across mattresses, foam, furniture, pillows, accessories, and other bedding products.

Virupaksha Organics IPO

Hyderabad-based pharmaceutical firm Virupaksha Organics proposed IPO is exclusively a fresh issue of equity shares worth ₹740 crore.

It may consider raising ₹148 crore in a pre-IPO placement round. If such placement is undertaken, then the issue size will be cut.

Proceeds from the fresh issue worth ₹360 crore will be used by Virupaksha to fund its capital expenditure requirement for capacity expansion, ₹195 crore earmarked for payment of debt and the balance towards general corporate purposes.

Virupaksha Organics is a research and development-driven Indian pharmaceutical company engaged in the manufacturing of active pharmaceutical ingredients and intermediates.

Hexagon Nutrition IPO

Hexagon Nutrition's proposed IPO is entirely an OFS of over 3.08 crore equity shares by promoters.

Incorporated in 1993, Hexagon Nutrition is engaged in developing and manufacturing products across micronutrient premixes, branded wellness and clinical nutrition, therapeutic formulations, and ready-to-use foods.

Om Power Transmission IPO

The proposed IPO of Om Power Transmission consists of fresh issue of 90 lakh shares and an offer-for-sale of 10 lakh shares by promoters.

Proceeds from the fresh issue will be used towards the purchase of machinery and equipment, repayment of debt, funding long-term working capital requirements, and general corporate purposes.

Ahmedabad-based Om Power Transmission is engaged in executing high-voltage and extra-high voltage transmission lines, substations, and underground cabling projects, and providing comprehensive operation and maintenance (O&M) services.

The shares of the companies will be listed on the BSE and NSE.