Mumbai: At least four companies are ready to sell their shares to the public for the first time in June, aiming to raise a total of at least Rs 5,000 crore, four people familiar with the moves said.
The firms are telecom equipment maker Tejas Networks Ltd, depository services firm Central Depository Services Ltd, pharma company Eris Lifesciences Ltd and small finance bank Au Small Finance Bank Ltd.
Bengaluru-based Tejas Networks, which is backed by private equity investors such as Goldman Sachs, Intel Capital, Frontline Strategy and Mayfield, is looking to launch its approximately Rs800 crore initial public offering (IPO) in the third week of June, one of the persons cited above said.
“Road shows were completed last month, a final assessment of the institutional demand has been done and the IPO is set for launch, which is targeted for the week of 12 June,” he said.
The IPO will raise Rs450 crore in primary capital for capital expenditure and working capital requirements. Several shareholders—including Cascade Capital Management Mauritius, Intel Capital, Frontline and the company’s chief executive officer Sanjay Nayak—will also sell some of the shares they hold through an offer for sale.
Au Small Finance Bank Ltd, one of the 10 entities who were granted a small finance bank licence in 2015 by the Reserve Bank of India, is planning to launch its almost Rs2,000 crore IPO, said another person cited above, also requesting anonymity.
“The plan is to launch the IPO towards the end of the month. The company is currently on investor roadshows, which are expected to be concluded soon,” he said.
Among small finance banks, it will be the third to be listed. Equitas Small Finance Bank got listed in April 2016 and in the next month, Ujjivan Small Finance Bank got listed too.
Au’s IPO is a pure offer for sale. Existing investors partially selling their shares include International Finance Corporation (part of the World Bank Group), Warburg Pincus, ChrysCapital and Kedaara Capital.
“As you are aware, Au Small Finance Bank Ltd had filed a draft red herring prospectus with capital markets regulator Securities and Exchange Board of India (SEBI) for its IPO on 1st February 2017. The company received the SEBI comments in March 2017. The timing of opening the IPO will be decided in due course by company and selling shareholders in consultation with BRLMs (book running lead managers),” said a spokesperson for the company in an email.
Last week, Mint reported that Ahmedabad-based pharmaceuticals company Eris Lifesciences Pvt. Ltd plans to launch a Rs2,000 crore IPO in June.
The fourth company is depository services firm CDSL, which plans to raise Rs400 crore.
According to the draft red herring prospectus filed by the company, the IPO will be a pure offer for sale by existing shareholders BSE Ltd, State Bank of India, Bank of Baroda and The Calcutta Stock Exchange. BSE, SBI, Bank of Baroda and The Calcutta Stock Exchange together hold 65.65% stake in CDSL, with BSE alone holding 50%.
Emails sent to Tejas Networks and CDSL on Thursday evening were not answered.
So far this year, eight companies have raised Rs6,335.83 crore through IPOs, while last year 26 companies raised Rs26,493.84 crore through this route.