Tata Technologies, an arm of Tata Motors, Gandhar Oil Refinery (India) Ltd, and non-banking financial company, SBFC Finance, have received SEBI’s approval to raise funds through initial public offerings.
The three companies, which filed their preliminary papers with SEBI between December 2022 and March 2023, obtained the regulator’s observations during June 21-23, an update with the markets watchdog showed on Tuesday.
In SEBI’s parlance, obtaining observations mean its go-ahead to float the initial share sale.
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As per the draft papers, Tata Technologies’ IPO is purely an Offer For Sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital.
Under the OFS, Tata Technologies’ parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company.
Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent).
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Gandhar Oil Refinery
The IPO of Gandhar Oil Refinery comprises fresh issue of equity shares worth ₹357 crore and OFS of 1.2 crore shares by promoters and existing shareholders, according to the draft red herring prospectus.
The fund raising through the OFS component is expected to be ₹500 crore, market sources said.
Proceeds from the fresh issue component will be used for payment of debt and for purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa plant.
In addition, the funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at the company’s Taloja plant, as well as expansion in capacity of white oils by installing blending tanks at the plant and funding working capital requirements.
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SBFC Finance is looking to raise ₹1,200 crore through the IPO, which comprises fresh issuance of shares worth ₹750 crore and OFS of ₹450 crore.
The proceeds from the fresh issuance worth ₹750 crore will be used towards augmenting its capital base.
The NBFC caters to entrepreneurs, small business owners, self-employed, and salaried individuals.
Shares of these three companies will be listed on the BSE and NSE.