New IPOs Alert: Torrent Gas, Sathya Agencies, Kanohar Electricals get SEBI's approval to launch public issues

City gas distributor Torrent Gas, transformer manufacturer Kanohar Electricals and consumer electronics retailer Sathya Agencies have received market regulator Securities and Exchange Board of India's nod to raise funds via initial public offerings.

Torrent Gas had filed preliminary IPO papers through the confidential route with SEBI in March, while Kanohar Electricals and Sathya Agencies submitted their draft red herring prospectuses (DRHPs) with the regulator in January and March, respectively.

The SEBI gave its observations to these companies from June 22 to 25. In the regulator's terminology, receiving an observation means a go-ahead to float an IPO.

Torrent Gas IPO

Torrent Gas, which is a city gas distributor, filed IPO papers with SEBI using the confidential route. The initial share sale is expected to be purely an offer for sale (OFS), with no fresh issue component.

The confidential filing route permits companies to submit draft papers to SEBI for review without immediately revealing sensitive business information to the public.

Its listed peers include Mahanagar Gas, Gujarat Gas, Indraprastha Gas and Adani Total Gas.

Sathya Agencies IPO

The initial public offering of Sathya Agencies is looking to raise ₹600 crore. The IPO will be a mix of a fresh issuance of shares worth ₹300 crore and an OFS aggregating to ₹300 crore by promoters.

Under the OFS, promoters Johnson Asaria, Charles Packiaraj and J John Sathya offloading their stake.

The Tamil Nadu-based company intends to use fresh issue proceeds towards repayment of certain borrowings, payment of partial purchase consideration to acquire subsidiary Unilet Appliances Pvt Ltd and for corporate general purposes.

Kanohar Electricals IPO

The proposed IPO of Kanohar Electricals is a combination of a fresh issue of shares totalling ₹300 crore and an OFS of 1.45 crore shares by promoter K Sons Family Trust.

The funds will be used for growing business and working capital requirements.

This includes buying new machinery and equipment for its Gangol manufacturing plant, civil and interior work for the office building, backward integration and automation, installing solar power plants and purchasing electric vehicles (EVs).