Author: Legal Parivar

The Securities and Exchange Board of India (SEBI) has raised concerns over companies using IPO proceeds to repay loans taken from promoters or promoter-related entities, according to sources. This stance has delayed several IPOs, with companies being asked to revise their plans for fund utilization or seek alternative financing routes for loan repayment, the sources added. Although SEBI’s capital market regulations do not specifically prohibit using IPO funds to repay loans from promoters or their entities, the regulator has recently declined to approve such transactions. SEBI has instead suggested that companies refinance promoter loans through financial institutions and then use…

The initial public offering (IPO) of Diffusion Engineers saw robust interest from investors, subscribing 27.19 times on its second day of bidding, September 27. A total of 17.94 crore equity shares were applied for, against the IPO size of 65.98 lakh shares. The company, which manufactures welding consumables, wear plates and parts, and heavy engineering machinery, launched its public issue on September 26 to raise ₹158 crore, with a price band set between ₹159 and ₹168 per share. Non-institutional and retail investors led the bidding, subscribing 47.08 times and 36.64 times the portions allocated to them, respectively. In contrast, qualified…

India’s foreign exchange reserves reached a new record high of $692.3 billion, reflecting an increase of $2.8 billion for the week ending September 20, according to the Reserve Bank of India (RBI) on Friday. This marks the second consecutive week of growth, following a rise of $223 million to $689.46 billion for the week ending September 13. As per the Weekly Statistical Supplement released by the RBI, foreign currency assets (FCAs) rose by $2 billion to $605.6 billion. The value of these assets in dollar terms also factors in the appreciation or depreciation of non-US currencies, including the euro, pound,…

April Moon Retail Private Limited, a joint venture of Adani Airport Holdings Limited, plans to acquire a 74% stake in Cococart Ventures Private Limited for ₹200 crore, as stated in a stock exchange filing. The filing detailed that April Moon Retail, a wholly owned subsidiary of Adani Airport Holdings, executed a Share Purchase Agreement (SPA), Joint Venture Agreement (JVA), and Share Subscription Agreement (SSA) on September 27, 2024, with Cococart Ventures and its existing shareholders, Karan Ahuja and Arjun Ahuja. The acquisition is expected to be completed by October 31, 2024. Additionally, Adani Dahanu Thermal Power Station (ADTPS) announced that…

On September 27, Punjab National Bank (PNB) announced that it has successfully raised ₹5,000 crore via a Qualified Institutions Placement (QIP). In a filing with the stock exchange, PNB stated that it allotted 48.2 crore shares to Qualified Institutional Buyers (QIBs) at an issue price of ₹103.75 per share. Major investors in this placement included Citigroup, BofA Securities, SBI Contra Fund, Morgan Stanley, and Goldman Sachs. Following the announcement, PNB’s shares closed 1.4% higher on the NSE, reaching ₹108.76 each. “The Capital Raising Committee of the Board approved the allotment of 48.2 crore equity shares to eligible QIBs at an…

On September 27, global investors Morgan Stanley, Societe Generale, and Citigroup acquired a combined 2.8% stake in Sterling and Wilson Renewable Energy through open market transactions. In contrast, the company’s promoters sold a total of 7.13% of their holdings. Morgan Stanley Asia Singapore Pte purchased 20.25 lakh equity shares, while Societe Generale bought 20.1 lakh shares and Citigroup Global Markets Mauritius acquired 25.65 lakh shares, all at an average price of ₹623 per share. The promoters, Shapoorji Pallonji and Company, sold 5.78% of their stake at an average price of ₹623.28, and Khurshed Yazdi Daruvala divested 1.35% at an average…

PVC blend-based building materials manufacturer, Kumar Arch Tech, has submitted its draft papers to SEBI for a proposed ₹740 crore initial public offering (IPO). According to the filing on September 27, the IPO will consist of a fresh issue of shares worth ₹240 crore and an offer for sale (OFS) of ₹500 crore by the promoters. The Rajasthan-based company, which operates under the ECHON brand, may also raise ₹48 crore through a pre-IPO placement. If this placement occurs, the size of the fresh issue will be reduced accordingly. Kumar Arch Tech claims to be India’s largest manufacturer of PVC blend-based…

On Friday, Property Share, a small and medium real estate investment trust (SM REIT), submitted its draft documents to the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth ₹353 crore. The primary purpose of the IPO is to fund the acquisition of the Prestige Tech Platina asset through Platina Special Purpose Vehicles (SPVs), with any remaining proceeds being used for general corporate purposes. This IPO will consist solely of a fresh issue of Platina units, with no offer for sale. ICICI Securities Limited will act as the sole lead manager, while Cyril Amarchand Mangaldas…

On Friday, the Bombay Stock Exchange (BSE) announced a revision in transaction fees for Sensex and Bankex options contracts within the equity derivatives segment, setting the new rate at ₹3,250 per crore of premium turnover. This updated fee structure will take effect from Tuesday, October 1. Transaction fees for other contracts in the equity derivatives segment remain unchanged. For Sensex 50 options and stock options, the transaction charge stands at ₹500 per crore of premium turnover, while no fees are applied to index and stock futures. Similarly, the National Stock Exchange (NSE) has introduced new transaction fees across various segments.…

Zomato’s Co-founder and Chief People Officer, Akriti Chopra, resigned from the company on September 27, 2024, after a 13-year tenure, as disclosed in a notification to the stock exchange. In her resignation letter addressed to CEO Deepinder Goyal, Chopra expressed gratitude for her journey at the company and wished Zomato and its initiative “Eternal” success. Chopra, who is also married to Blinkit CEO Albinder Dhindsa, is among several high-level executives who have recently left Zomato. Earlier, former CTO Gunjan Patidar, co-founders Mohit Gupta, Pankaj Chaddah, Gaurav Gupta, and others, including key leaders in the company’s new initiatives, had also stepped…