Upcoming IPOs: SK Finance among 3 companies to get SEBI's go-ahead to float public offers; check list

Muthoot Finance's microfinance arm Belstar Microfinance, EPC (Engineering, procurement, and construction) major Transrail Lighting, and vehicle finance and business loans-focused non-bank lender SK Finance have received market regulator Securities and Exchange Board of India's (SEBI's) approval to float IPOs.

The three companies obtained their observation letters on August 30. In SEBI's phraseology, obtaining observation means a go-ahead for public issue.

Upcoming IPOs: Companies that have received SEBI's nod for public issues; check list

• Belstar Microfinance
• Transrail Lighting
• SK Finance

Belstar Microfinance IPO

According to the draft red herring prospectus (DRHP), Belstar Microfinance IPO consists of a fresh issuance of shares worth ₹1,000 crore and an offer-for-sale (OFS) component of ₹300 crore by investor shareholders.

Under the OFS, Danish asset management firm MAJ Invest plans to sell shares worth ₹175 crore, followed by Arum Holdings Ltd (₹97 crore) and Augusta Investments Zero Pte Ltd (₹28 crore).

MAJ Invest had first invested in Belstar Microfinance in 2018 and again in 2022.

Muthoot Finance, one of the promoters, currently holds just over 66% stake in Belstar Microfinance.

Proceeds from the fresh issue will be used to meet future capital requirements for onward lending and general corporate purposes.

Transrail Lighting IPO

The IPO of Transrail Lighting consists of a fresh issue of shares worth ₹450 crore and an OFS of over one crore shares by promoter Ajanma Holdings Pvt Ltd.

Proceeds from the fresh issue will fund incremental working capital requirements, support capital expenditure, and general corporate purposes.

SK Finance IPO

SK Finance's proposed IPO is a fresh issue of equity shares aggregating to ₹500 crore and an OFS of up to ₹1,700 crore by promoters and investor shareholders.

As a part of the OFS, Norwest Venture Partners X-Mauritius and TPG Growth IV SF PTE Ltd will offload shares worth ₹700 crore each, Evolvence Coinvest I will divest shares to the tune of ₹75 crore and Evolvence India Fund III Ltd will sell shares worth ₹25 crore.

Additionally, promoters Rajendra Kumar Setia and Rajendra Kumar Setia HUF will offload shares aggregating ₹180 crore and Rs 20 crore, respectively.

The Jaipur-based SK Finance plans to utilise proceeds from the fresh issue to augment the capital base and meet future business requirements of the company towards onward lending and general corporate purposes.

Shares of these companies will be listed on the National Stock Exchange (NSE) and the BSE.