Tata Technologies, SBFC Finance, and Gandhar Oil Refinery have obtained SEBI’s approval for their IPOs, allowing them to proceed with the initial share sales.
Tata Technologies, a division of Tata Motors, received clearance from capital markets regulator SEBI (Securities and Exchange Board of India) for its initial public offering (IPO). Since Tata Consultancy Services (TCS) in July 2004, this development is the Tata group’s first major public problem.
Launch of the Offer for Sale (OFS) IPO by Tata Technologies
In an OFS IPO, Tata Technologies would let current shareholders to sell up to 9.57 crore equity shares, or around 23.60 percent of the company’s paid-up share capital. Tata Motors, the parent firm, proposes to sell 8.11 billion shares (20%), while Alpha TC Holdings Pte and Tata Capital Growth Fund I each seek to sell up to 97.16 lakh and 48.58 lakh shares, respectively.
Size and Allocation of IPOs
While the value of the Tata Technologies IPO has not been officially disclosed, market sources estimate it to be approximately Rs 4,000 crore. The IPO is expected to allocate 50% to qualified institutional buyers (QIBs), 35% to retail investors, and 15% to other buyers.
Rs. 1,200 billion IPO is planned by SBFC Finance
SBFC Finance, a non-banking financial institution established in Mumbai, plans to raise Rs 1,200 crore through an IPO. The transaction would include an OFS of Rs 450 crore and a fresh issue of shares worth Rs 750 crore. Arpwood Partners Investment Advisors LLP, Arpwood Capital Private Limited, Eight45 Services LLP, and SBFC Holdings Pte. Ltd. also contributed to the OFS part.
Distribution and Utilization of IPO Proceeds
The distribution of the net offer will be as follows: 50% to qualified institutional buyers (QIBs), 15% to non-institutional investors (NIIs), and 35% to retail investors. The 750 crore rupees raised from the additional share offering will be utilized to enhance SBFC Finance’s capital base. Entrepreneurs and small businesses are the company’s main clients.
Gandhar Oil Refinery
Inclusion of Fresh Issue and OFS in Gandhar Oil Refinery’s IPO
The inaugural share sale of Gandhar Oil Refinery will include a new issue of equity shares amounting to Rs 357 crore, along with an offer for sale (OFS) of 1.2 crore shares by the promoters and current shareholders. Market insiders predict that the OFS will raise Rs 500 crore.
Funding Methods and IPO Structure
Furthermore, the funds will be used to enhance the production capacity of petroleum jelly and cosmetic products at Gandhar’s Taloja facility.The expansion includes the installation of blending tanks and provision of working capital for the increased capacity of white oils.