Premier Energies, P N Gadgil Jewellers, 2 others get SEBI's go-ahead to float IPOs

Four companies, including Premier Energies Ltd and P N Gadgil Jewellers Ltd, have received SEBI's go-ahead to raise funds through Initial Public Offerings (IPOs), an update with the markets regulator showed on Tuesday.

The other two firms that obtained the regulator's clearance to float initial share sales are -- Ecos India Mobility and Hospitality Ltd and KRN Heat Exchanger and Refrigeration Ltd.

The four companies, which filed their preliminary IPO papers between March and April, obtained SEBI's observation letters during July 22-26.

In SEBI's parlance, obtaining the observation letters means it's going ahead to float the public issue.

According to the Draft Red Herring Prospectus (DRHP), solar cell company Premier Energies' proposed IPO is a combination of a fresh issue of equity shares worth ₹1,500 crore and an Offer For Sale (OFS) of up to 2.82 crore shares by promoter and investors.

Under the OFS component, South Asia Growth Fund II Holdings LLC will divest 2.38 crore equity shares, South Asia EBT Trust will divest 1.53 lakh equity shares, and promoter Chiranjeev Singh Saluja will sell 42 lakh equity shares.

Proceeds from the fresh issue of ₹1,168 crore will be used for investing in subsidiary Premier Energies Global Environment Private Ltd, to partially finance the establishment of a 4GW solar PV TOPCon (tunnel oxide passivated contact) cell and 4GW solar PV TOPCon module manufacturing facility in Hyderabad, and the remainder will be allocated towards general corporate purposes.

The ₹1,100-crore IPO of jewellery retail chain P N Gadgil Jewellers Ltd is a combination of a fresh issue of equity shares worth up to ₹850 crore and an OFS of equity shares to the tune of ₹250 crore by a promoter SVG Business Trust, according to the draft prospectus.

Of the IPO proceeds of ₹850 crore, a total of ₹387 crore will be utilised for the funding of expenditure towards setting up 12 new stores in Maharashtra, ₹300 crore for payment of a debt, besides a portion will also be used for general corporate purposes.

Chauffeur-driven mobility provider Ecos (India) Mobility & Hospitality Ltd's maiden public issue is entirely an OFS of 1.8 crore equity shares by promoters — Rajesh Loomba and Aditya Loomba — with no fresh issue component.

At present, promoters and promoter group entities hold a 100% stake in the company.

Since it is an OFS, the Delhi-based firm will not receive any proceeds from the IPO and the money will go to the promoters selling shares.

KRN Heat Exchanger's initial paper was filed in January 2024 comprising entirely a fresh issue of 1.93 crore equity shares with no OFS component. Later, the company filed updated papers in late March with revised issue size.

Going by the draft papers filed in March, the company's proposed IPO comprises a fresh issue of size of 1.6 crore equity shares.

Funds will be used for investment in wholly-owned subsidiary KRN HVAC Products for setting up a new manufacturing facility at Neemrana, Alwar, in Rajasthan.

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