Four companies—Varmora Granito, Knack Packaging, Shivalaya Construction, and Behari Lal Engineering—have received approval from the Securities and Exchange Board of India (SEBI) to proceed with their initial public offering (IPO) plans, while Infifresh Foods, the parent company of B2B seafood platform Captain Fresh, has withdrawn its draft papers filed through the confidential route.
SEBI issued its observations on the draft offer documents of Varmora Granito on December 15, followed by Shivalaya Construction and Behari Lal Engineering on December 24, and Knack Packaging on December 26. Receipt of SEBI’s observations enables the companies to launch their IPOs within one year.
Varmora Granito, an Ahmedabad-based tiles and bathware manufacturer, had filed its draft red herring prospectus (DRHP) in August. The company plans to raise Rs 400 crore through a fresh issue, while investor Katsura Investments and promoters will sell 5.24 crore equity shares via an offer-for-sale (OFS). The proceeds from the fresh issue will be primarily used for repayment of borrowings, with the balance earmarked for general corporate purposes.
Another Ahmedabad-based firm, Knack Packaging, one of the largest manufacturers of printed and laminated woven polypropylene bags, filed its DRHP in September. Its proposed IPO includes a fresh issue of shares worth Rs 475 crore and an OFS of 70 lakh shares by promoters. The company plans to utilise the funds to set up a new manufacturing facility and meet capital expenditure requirements.
Shivalaya Construction, a New Delhi-based infrastructure engineering, procurement and construction (EPC) company focused on road and highway development and maintenance, also filed its IPO papers in September. The issue comprises a fresh issue of Rs 450 crore and an OFS of 2.48 crore shares by promoters. The fresh capital will largely be deployed towards debt repayment, with the remainder used for general corporate purposes.
Delhi-based Behari Lal Engineering, an iron and steel manufacturing company specialising in customised engineering solutions, submitted its draft papers in September as well. Its IPO includes a fresh issue of Rs 110 crore and an OFS of 78.54 lakh shares by investor SG Tech Engineering and promoters. The company intends to use the proceeds for capital expenditure, repayment of borrowings, and general corporate needs.
Meanwhile, Infifresh Foods, which had filed IPO papers via the confidential route in August, has withdrawn its pre-DRHP on December 24. Media reports had earlier indicated that the Bengaluru-based seafood exporter was considering an IPO of around Rs 1,700 crore, largely to repay debt.
In an official statement, Infifresh Foods said the withdrawal was a strategic decision to facilitate the expedited completion of a material acquisition. The company added that it has secured all necessary regulatory approvals for the acquisition and is in the final stages of execution, which is expected to significantly strengthen its global market position.
“Maintaining capital structure flexibility is essential to support these strategic equity investments. This withdrawal is a measure in that direction,” the company said, adding that its original IPO roadmap remains unchanged and it will file fresh papers after the transaction is completed.
