SEBI Approves Hyundai, Swiggy, Vishal Mega Mart, Others to Hit Bourses According to a recent update from the market regulator, Vishal Mega Mart, Swiggy, ACME Solar Holdings, Mamata Machinery, and Hyundai Motor India have all received the necessary approvals from SEBI to go public.
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Capital markets regulator Securities and Exchange Board of India (SEBI) has issued approvals to five major companies to raise funds through the initial public offering route.
According to a recent update from the market regulator, Vishal Mega Mart, Swiggy, ACME Solar Holdings, Mamata Machinery, and Hyundai Motor India have all received the necessary approvals from SEBI to go public.
SEBI's latest update also revealed that it issued observation letters to these companies in the closing days of September and notably, it also returned the draft papers of manpower services company Innovision, which proposed to go public with a mix of INR 315 crore worth of fresh issue shares and an offer for sale (OFS) of 11.81 equity shares.
Korean Auto Giant Goes Public
The Indian subsidiary of South Korea's Hyundai Motor Company is expected to raise close to INR 25,00 crore, in what will be the largest-ever public offering in India.
Hyundai Motor is reportedly planning to hit the market just before the Diwali season. The company is currently the second largest carmaker in India after Maruti Suzuki. The market opines that Hyundai might grow stronger in comparison to its competitors in the country including the likes of Tata Motors, even though the automaker has revealed that it will not be utilizing the proceeds from the public fundraise directly for company operations.
The Hyundai IPO will be an entirely offer-for-sale (OFS) issue with the Hyundai Motor Company being the main promoter who will be selling shares. Market watchers say that offers an expanded investment prospect in what is dubbed an underdeveloped Indian auto market.
Kotak Mahindra Capital Company, Citigroup Global Markets, HSBC Securities and Capital Markets India, JP Morgan India, and Morgan Stanley India are the merchant bankers to the issue.
Swiggy to Take The IPO Route
Food delivery platform Swiggy announced its plans to go public with its Initial Public Offering (IPO) in what looks to be one of the biggest listings in the current market debut boom.
The offering will consist of fresh issues of face value INR 1 each, aggregating to INR 3,750 crores, and an offer for sale (OFS) of up to 18,52,86,265 equity shares for the existing shareholders, according to the Draft Red Herring Prospectus (DRHP) filed by Swiggy with the market regulator Securities and Exchange Board of India (SEBI). The fresh issue and the OFS component will bring the company's IPO to INR 10,414 crore.
Accel India, Apoletto Asia, Alpha Wave Ventures, and Elevation Capital are among the existing corporate shareholders selling shares along with a few individual shareholders
Household Retail Giant Plans IPO
Retail store chain brand Vishal Mega Mart filed its papers with SEBI back in July and obtained the green signal on September 25. The retail chain through the IPO, is planning to raise US$1 billion, which will take its company valuation to up to US$5 billion mark.
Vishal Mega Mart plans to use the proceeds to expand its footprint by adding new stores. It was earlier reported that the Swiss-based Partners Group and Kedaara Capital who jointly possess a majority stake in the retail brand will be the promoters selling shares in the offering.
The company competes with Reliance, Avenue Super Markets, and Tata Group's Trent, with over 560 physical stores and an e-commerce presence.
ACME Solar Holdings and Mamata Machiners
ACME Solar Holdings, the Gurugram-based company dealing in solar energy received SEBI's approval to go public on September 27. According to the DRHP, the company's IPO is a fresh issue of equity shares worth INR 2,000 crore, including an OFS valued at INR 1,000 crore by ACME Cleantech Solutions. The company said that proceeds from the fundraiser will be used towards debt repayment and general corporate expenses.
Gujarat-based Mamata Machiner's initial public offering is entirely an OFS of equity shares totaling 73.82 lakhs by the promoters selling shares namely Mahendra Patel, Nayana Patel, Bhagvati Patel, Mamata Group Corporate Services LLP, and Mamata Management Services LLP.
India's mainboard IPO has recorded 62 companies thus far including Bajaj Housing Finance, Ola Electric Mobility, and FirstCry's parent Brainbees Solutions with proceeds from the offerings collectively amassing INR 64,000 crore.
Mid-market investment bank Pantomath Capital Advisors said that the Indian equity markets have reached all-time closing highs, reflecting investor confidence driven by anticipated changes in the domestic interest rate cycle following the US Federal Reserve's recent 50-basis-point rate cut. The overall trend in the Indian equity market remains positive, with the Nifty making an all-time high of around 26,086.20 levels so far in this rally.
"The Asian Development Bank maintains India's growth forecast at 7 per cent for FY25, attributing this to improved agricultural output and increased government spending, alongside robust expectations for private consumption and export growth," it added.
