New IPOs Alert: IFL Finance, Arjun Jewellers, Sagar Defence, Encube Ethicals get SEBI’s approval for public offers

Four companies, including deep-tech and aerospace startup Sagar Defence Engineering Ltd and gold loan-focused non-banking financial company (NBFC) IFL Finance, have secured approval from market regulator Securities and Exchange Board of India (SEBI) to launch their initial public offerings (IPOs), paving the way for their proposed public issues.

Specialty pharmaceutical player Encube Ethicals and jewellery retailer Arjun Jewellers have also received SEBI's approval.

These four firms, which filed their draft red herring prospectuses (DRHPs) between July and August, received SEBI's observations between October 21 and November 4.

Sagar Defence Engineering IPO

Sagar Defence Engineering received observations from the Securities and Exchange Board of India (SEBI) on November 4. The company had filed its draft papers through the confidential pre-filing route.

The IPO size is estimated at around ₹3,000 crore, according to people familiar with the matter.

Encube Ethicals IPO

Encube Ethicals' proposed ₹3,000-crore IPO is solely an offer for sale (OFS) by promoter Mehul Madhusudan Shah and existing shareholder Frontier Investment Holdings Pte Ltd.

Since the issue is entirely an OFS, the company will not receive any proceeds from the public offering, with the entire amount going to the selling shareholders.

"Our company expects that listing of the equity shares will enhance our visibility and brand image as well as provide a public market for the equity shares in India," according to an exchange filing.

Arjun Jewellers IPO

SEBI also approved the IPO of Arjun Jewellers on November 4. The company's proposed public issue comprises a fresh issue of equity shares worth ₹200 crore, with no OFS component.

The money raised will be utilised to fund incremental working capital needs for procurement of inventory for existing retail showrooms and proposed new retail showrooms. It will also be used for general corporate purposes.

IFL Finance IPO

Additionally, IFL Finance's proposed IPO comprises a fresh issue of up to 3.55 crore equity shares and an OFS of up to 30 lakh shares by existing shareholders.

The New Delhi-based non-deposit-taking NBFC plans to utilise the proceeds from the fresh issue to augment its Tier-I capital base to support future capital requirements, including lending activities, and meet capital adequacy norms.

All four companies will be listed on the BSE and NSE.