Fincare Small Finance Bank Ltd and logistics company Western Carriers (India) Ltd have received approval from the markets regulator Securities and Exchange Board of India (SEBI) to raise funds through Initial Public Offerings (IPOs). The two firms, which filed preliminary IPO papers with the SEBI between May and June, obtained the regulator's observation letters during September 15-22, an update with the watchdog showed on Tuesday. In SEBI's parlance, obtaining its observation letter means its clearance to float the public issue.
According to the draft paper, Fincare Small Finance Bank's IPO comprises a fresh issue of equity shares worth up to Rs 625 crore and an Offer For Sale (OFS) aggregating up to 1.7 crore equity shares by a promoter and investors. Those selling shares in the OFS are promoter Fincare Business Services Ltd, and investors Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd and Leapfrog Rural Inclusion (India) Ltd.
Besides, Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd and Zuno General Insurance (formerly known as Edelweiss General Insurance Company) are the investors selling shares in OFS.
The bank would utilise net proceeds from the fresh issue towards augmenting its Tier-1 capital base to meet future capital requirements.
Western Carriers' IPO consists of a fresh issue of equity shares aggregating up to Rs 500 crore and an OFS of up to 93.29 lakh equity shares by promoter Rajendra Sethia, according to the Draft Red Herring Prospectus (DRHP).
The Kolkata-based firm said that proceeds from the fresh issue will be used towards prepayment of certain outstanding borrowings, capital expenditure funding, and general corporate purposes. Shares of both companies will be listed on the BSE and NSE.
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