Four Companies Receive Sebi Approval For Initial Public Offerings

Four firms – BIBA Fashions Ltd, Keystone Realtors Ltd, Plaza Wires Ltd, and Hemani Industries Ltd – have received their respective observation letters from the Sebi

The Securities and Exchange Board of India (Sebi) has given its approval for the proposed initial public offerings (IPOs) of four companies – BIBA Fashions Ltd, Keystone Realtors Ltd, Plaza Wires Ltd, and Hemani Industries Ltd, the PTI reported.

According to the report, these four firms have received their respective observation letters from the market regulator, an update on the regulator's website as on October 14 stated. In Sebi's parlance, issuance of the observation letter implies the go-ahead from the regulator for the proposed IPO.

Ethnic wear fashion label Biba Fashion, which is backed by Warburg Pincus and Faering Capital, had filed the Draft Red Herring Prospectus (DRHP) for an IPO in April.

The proposed IPO comprises fresh issuance of equity shares worth Rs 90 crore and an Offer For Sale (OFS) of 2.77 crore equity shares by the promoter and existing investors, as per the draft papers.

In June, Rustomjee group company Keystone Realtors has filed the preliminary papers to raise Rs 850 crore through an IPO. It consists of fresh issue of equity shares aggregating up to Rs 700 crore and an OFS worth Rs 150 crore by promoters, according to the DRHP.

Agrochemical manufacturer Hemani Industries Ltd filed the DRHP to raise Rs 2,000 crore through an initial share sale in March.

The IPO comprises fresh issue of equity shares aggregating up to Rs 500 crore and an OFS of equity shares worth up to Rs 1,500 crore by its promoters.

In May, Plaza Wires filed the DRHP for the share sale involving a fresh issue of 1,64,52,000 equity shares. The Delhi-based company is into the business of manufacturing, marketing and selling of wires, aluminium cables and fast moving electrical goods.

Meanwhile, Sebi has imposed a penalties totalling Rs 6 lakh on three individuals for violating the insider trading norms in the shares of PVR Ltd. The individuals – Gautam Dutta (Noticee 1), NC Gupta (Noticee 2) and Pramod Arora (Noticee 3) – were the designated persons/ employees of the company and are collectively referred to as noticees', the regulator said in an order on October 2.