Upcoming IPOs: Sterlite Electric, Oswal Cables, 4 others file draft papers with SEBI

Six companies, including Vedanta Group firm Sterlite Electric, Rays Power Infra and Augmont Enterprises, have filed preliminary papers with markets regulator SEBI to raise funds through initial public offerings (IPOs).

Rotomag Enertec, Oswal Cables and Pride Hotels have also approached SEBI with their respective draft papers.

All six proposed issues will be a mix of fresh issues of equity shares and an offer for sale (OFS), according to their draft red herring prospectus (DRHP) filed on Tuesday.

With these filings, the IPO pipeline remains strong. Over the past few days, nearly two dozen companies have submitted draft papers with SEBI, and so far, 77 main-board IPOs have been launched this year.

The IPO of Sterlite Electric Ltd (formerly known as Sterlite Power Transmission Ltd) will consist of a fresh issue of 77.9 lakh equity shares and an equal number of shares under OFS by a promoter and existing shareholders.

The company plans to use the IPO proceeds to repay or prepay some of its outstanding borrowings, to fund capital expenditure for expansion, including the purchase of new plants, machinery and equipment, and for general corporate purposes.

Sterlite Electric is engaged in manufacturing capital goods and providing system integration solutions in the power transmission and distribution sector, catering to both domestic and international markets.

Mumbai-based Rays Power Infra is looking to raise ₹1,150 crore, comprising a fresh issue of ₹900 crore and an OFS of ₹250 crore.

Out of the net proceeds, ₹500 crore will go towards investment in its subsidiary Rays Green Energy for establishing a 1.5 GW PV Solar n-type TOPCon G12R cell manufacturing plant in Madhya Pradesh. Another Rs 200 crore will be allocated to working capital, with the balance for general corporate purposes.

Similarly, Augmont Enterprises, an integrated gold and silver platform, plans to raise ₹800 crore through a fresh issue of ₹620 crore and an OFS of ₹180 crore.

The proceeds are intended to meet working capital needs, mainly for procurement and inventory maintenance, as well as to fund advance margin requirements and general corporate expenses.

Meanwhile, Gujarat-based Rotomag Enertec is eyeing ₹500 crore through a fresh issue of shares, in addition to an OFS of 2.4 crore shares by existing shareholders, including promoters and investor BanyanTree Growth Capital.

The company may also explore a pre-IPO round of up to ₹100 crore.

The funds raised will be used for redemption of non-convertible debentures, meeting working capital needs, and general corporate purposes.

Rotomag is known for manufacturing DC motors, drive systems, gear-reduction systems and solar pumping solutions, serving industrial, rural and renewable energy markets.

On similar lines, Oswal Cables has proposed to raise ₹300 crore through a fresh issue, alongside an OFS of up to 2.22 crore equity shares.

Proceeds from the fresh issue will be used to set up a new project, repay debt, and meet general corporate requirements.

Pride Hotels, headquartered in New Delhi, is coming up with an IPO comprising a fresh issue of ₹260 crore and an OFS of 3.92 crore shares.

The company intends to channel the funds towards renovation of existing hotels, debt repayment, and other corporate needs.

In addition, it may consider raising ₹52 crore through a pre-IPO placement, in which case the size of the fresh issue will be adjusted accordingly.