In a major financial breakthrough, renowned cryogenic equipment manufacturer, INOX India and lifestyle giant Stanley Lifestyles have received the coveted approval from SEBI to kickstart their Initial Public Offerings (IPOs). The green light from the capital markets regulator sets the stage for both companies to enter the IPO arena. Not only this, as per the latest news of the IPO, SK Finance has also declared its IPO plans for 2024.
SEBI’s Observation Letter Paves the Way
In a crucial development, INOX India received an observation letter from SEBI on November 29, signalling the regulator’s approval for the company’s fundraising journey via IPO. Simultaneously, Stanley Lifestyles, backed by the Oman India Joint Investment Fund, received its observation letter on November 30.
Decoding SEBI’s parlance, the issuance of an observation letter signifies the green signal for companies to proceed with their fundraising plans through the IPO route. This announcement marks a pivotal moment for both INOX India and Stanley Lifestyles.
INOX India Pvt Ltd IPO
Gujarat-based INOX India, a leading cryogenic tank manufacturer, submitted IPO papers in August, outlining an offer-for-sale (OFS) of 2.21 crore equity shares by existing shareholders. Dive deeper into the details of INOX India’s strategic IPO approach, the stakeholders involved, and the unique dynamics of its fundraising strategy.
Promoters’ Stake and Utilization of Proceeds
Under the OFS, the selling shareholders include prominent figures such as Promoters Siddharth Jain, Pavan Kumar Jain, Nayantara Jain, and Ishita Jain. Additional shareholders, including Manju Jain, Lata Rungta, Bharti Shah, Kumud Gangwal, Suman Ajmera, and Rajni Mohatta, will also participate in offloading shares. Notably, the company will not receive any proceeds from the offer, as it is entirely directed to the selling shareholders.
Diverse Applications of INOX India’s Products
INOX India specialises in cryogenic tanks and equipment, beverage kegs, bespoke technology, and solutions for various industries, including industrial gases, LNG, green hydrogen, energy, steel, and medical and healthcare. The IPO’s lead managers are ICICI Securities and Axis Capital.
Stanley Lifestyles’ Strategic IPO Move
Bengaluru-based home solutions innovator Stanley Lifestyles, strategically positioned itself in the IPO arena by filing draft papers in September for a significant capital infusion. The company eyes a fresh issue of shares valued at Rs 200 crore, coupled with an Offer for Sale (OFS) component involving 91.33 lakh shares.
Key Players in the Share Offering
Prominent figures at the forefront of this share offering include Promoters Sunil Suresh and Shubha Sunil, who are set to offload 11.82 lakh shares each via OFS. Simultaneously, Oman India Joint Investment Fund II plans to sell 55.44 lakh shares, while Kiran Bhanu Vuppalapati and Sridevi Venkata Vuppalapati intend to part ways with 12.25 lakh shares, according to the Draft Red Herring Prospectus (DRHP).
Utilisation of Fresh Issue Proceeds
Stanley Lifestyles has a clear roadmap for the utilization of the fresh issue proceeds. The funds generated through this strategic move will be earmarked for opening new stores, renovating existing ones, acquiring cutting-edge machinery and equipment, and fulfilling general corporate objectives.
Book-Running Lead Managers
The IPO journey of Stanley Lifestyles is expertly guided by renowned financial institutions. Axis Capital, ICICI Securities, JM Financial, and SBI Capital Markets are the appointed book-running lead managers, steering the company towards a successful market entry.
IPO News: What’s More?
In a significant move towards market expansion and growth, Jaipur-based non-banking finance company (NBFC), SK Finance is in the early stages of discussions to embark on its Initial Public Offering (IPO) journey next year. Sources close to the industry have revealed that the company aims to raise an impressive $250 million to $300 million (Rs 2,092 crore to Rs 2,511 crore) through this strategic financial manoeuvre, as reported by Moneycontrol.
Background and Financial Backing
Formerly known as Ess Kay Fincorp, SK Finance boasts a robust support system backed by influential entities such as TPG Growth and Norwest Venture Partners. Notably, the company has recently welcomed Motilal Oswal Alternates on board, further strengthening its financial foundation.
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Strategic Vision of SK Finance
Insiders familiar with SK Finance’s plans assert that the company seeks to unlock substantial value through its listing on the stock exchange. This move is envisioned not only as a partial exit strategy for existing investors but also as a means to attract essential growth capital, facilitating the company’s expansion and strategic initiatives.
References
- Mathur, S. (n.d.). INOXCVA to launch IPO in December after receiving a regulatory nod from SEBI. Moneycontrol. Retrieved December 6, 2023.
- Matkar, S. S. (n.d.). INOX India, Stanley Lifestyles get Sebi approval to float IPOs. Moneycontrol. Retrieved December 6, 2023.
- Mohan, A. (n.d.). TPG & Norwest Ventures-backed SK Finance planning $250-300 million IPO in 2024. Moneycontrol. Retrieved December 6, 2023.
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