Upcoming IPOs: Pioneer Fil-Med, Tonbo Imaging, Functional & Innovative Foods get SEBI approval

The draft offer documents of the three companies were received by SEBI between April and August. After reviewing the documents, the regulator gave its observations during September 21-25, an update with the markets watchdog showed on Monday.

The regulator's observations are a key regulatory step that enables companies to proceed with their IPOs, subject to applicable laws and other requirements.

Railway components maker Pioneer Fil-Med's proposed ₹500 crore IPO comprises a fresh issue of equity shares worth ₹250 crore and an Offer for Sale (OFS) of shares worth ₹250 crore, according to its draft papers.

The OFS will comprise stake sales by promoter Pioneer Facor IT Infradevelopers and promoter group entity Aztech India, with each proposing to sell shares worth up to ₹125 crore.

The company plans to utilise the proceeds from the fresh issue towards partly financing the establishment of a gearbox manufacturing facility and a wind generator components manufacturing facility at Salarpur in Bhiwadi, Rajasthan, besides meeting general corporate purposes.

Tonbo Imaging India's proposed IPO comprises an OFS of up to 18,085,246 equity shares, with no fresh issue component, according to its draft red herring prospectus.

As the issue is entirely an OFS, Tonbo Imaging will not receive any proceeds from the share sale, and the proceeds will accrue to the selling shareholders.

Tonbo Imaging India, founded in 2003, is a global defence electronics OEM engaged in designing, developing and manufacturing sensing, processing, communication and guidance systems. Its draft papers identify the IPO as an OFS-only issue.

Functional & Innovative Foods' proposed IPO is a combination of a fresh issue of up to 60 lakh equity shares and an OFS of up to 25 lakh equity shares by promoter Senthil Kumar Chinnusamy.

The company proposes to utilise the proceeds from the fresh issue to fund capital expenditure for setting up two new manufacturing units at Namakkal in Tamil Nadu and Dhar in Madhya Pradesh.

Also, the funds will be used for repayment or prepayment of certain outstanding borrowings of the company and its wholly-owned subsidiary Christy Quality Foods (India) Pvt Ltd, besides meeting long-term working capital requirements and general corporate purposes, as per the draft papers.

The company is an integrated food contract manufacturer with a portfolio spanning ready-to-eat (RTE) and ready-to-cook (RTC) products, staples, sugar alternatives, spices and other food products.