Pharmacy Retail Chain To Travel Firm, 6 Companies Get Sebi Approval For IPO

Six companies, which filed their preliminary IPO papers with Sebi between August and September, have received an observation letter meaning a go-ahead for an IPO

New Delhi: In a year of record initial public offerings (IPOs) this year, market regulator Sebi has approved issues of six more companies to raise funds. The companies which got the approval include pharmacy retail chain MedPlus Health Services, travel technology services firm RateGain Travel Technologies, and microlender Fusion MicroFinance.

Other firms to have received the approval to float their Initial Public Offerings (IPOs) are retail wealth management firm Prudent Corporate Advisory Services, private market intelligence platform Tracxn Technologies and real estate developer Puranik Builders, according to news agency PTI.

The above six companies, which filed their preliminary IPO papers with Sebi between August and September, has received an observation letter from the regulator during November 16-18, an update with the markets watchdog showed on Monday.

The issuance of observations letter is understood as getting a go-ahead for an IPO.

What is the expected size of IPOs?

As per the draft papers, MedPlus Health Services' Rs 1,639-crore IPO comprises fresh issuance of equity shares worth 600 crores and an Offer For Sale (OFS) of equity shares to the tune of Rs 1,038.71 crore by the promoters and existing shareholders.

The OFS comprises equity shares aggregating up to Rs 450 crore by Lone Furrow Investments, equity shares worth up to Rs 500 crore by PI Opportunities Fund I and equity shares aggregating up to Rs 88.71 crore by other selling shareholders.

Proceeds of the fresh issue will be used for funding the working capital requirements of the company's subsidiary Optival. The initial share sale of RateGain Travel Technologies consists of a fresh issue of equity shares, aggregating up to 400 crore, and an OFS of up to 2.26 crore shares by promoters and existing shareholders, as per the PTI report.

While the OFS comprises a sale of 1.71 crore equity shares by Wagner Ltd, up to 40.44 lakh shares by Bhanu Chopra and up to 12.94 lakh shares by Megha Chopra and up to 1.52 lakh shares by Usha Chopra.

Proceeds from the fresh issue will be used for payment of debt availed by RateGain UK, one of the subsidiaries, from Silicon Valley Bank, payment of deferred consideration for the acquisition of DHISCO and strategic investments, acquisitions, and inorganic growth.

Also, the funds will be invested in technology innovation, artificial intelligence, and other organic growth initiatives, the purchase of certain capital equipment for the data centre, and general corporate purposes.

Fusion Microfinance IPO comprises fresh issuance of equity shares worth Rs 600 crore and an OFS of 2.19 crore equity shares by promoters and existing shareholders.