Tata Tech, Gandhar Oil, and SBFC Fin Secure IPO Approval from SEBI
In an exciting development for the capital market, the Securities and Exchange Board of India (SEBI) has granted approval to three prominent companies to raise funds through initial public offerings (IPOs). These companies include Tata Technologies, a subsidiary of Tata Motors, Gandhar Oil Refinery (India) Ltd, and SBFC Finance, a non-banking financial firm. Having submitted their preliminary papers to SEBI between December 2022 and March 2023, these firms received favorable observations from the regulator during the period of June 21-23. The issuance of observations from SEBI signals a green light for the commencement of the initial share sale.
Tata Technologies’ IPO, as outlined in the draft papers, will primarily consist of an offer for sale (OFS). Under this arrangement, the company intends to sell up to 9.57 crore equity shares, representing 23.60% of its paid-up share capital. As part of the OFS, Tata Technologies’ parent company, Tata Motors, plans to divest 8.11 crore shares, equating to a 20% stake in the company.
Additional shareholders involved in the OFS include Alpha TC Holdings Pte, aiming to sell up to 97.16 lakh shares (2.40% stake), and Tata Capital Growth Fund I, intending to offload up to 48.58 lakh equity shares (1.20% stake). This IPO marks the first listing from the esteemed Tata Group since the initial public offering of Tata Consultancy Services (TCS) in August 2004.
Upon its listing, Tata Technologies will join the ranks of the 28 listed Tata companies, collectively commanding an impressive market capitalization (m-cap) of Rs 22.23 lakh crore, as of the most recent closing levels on Monday.
Notably, Tata Play, now known as Tata Sky, previously became the first Indian company to utilize the confidential pre-filing of draft papers option for an initial share sale. The company received SEBI’s observation letter on April 26 this year. Through the pre-filing route, the company experienced no compulsion to proceed with an IPO, offering greater flexibility in their decision-making process.
Turning to Gandhar Oil Refinery, their IPO consists of a fresh issue of equity shares amounting to Rs 357 crore, coupled with an offer for sale of 1.2 crore shares by promoters and existing shareholders. The funds generated from the fresh issue will be allocated toward debt repayment and the procurement of equipment and infrastructure needed for expanding the capacity of automotive oil at their Silvassa plant.
As for SBFC Finance, the non-banking lender aims to raise Rs 1,200 crore through its IPO. The initial share offer encompasses a fresh issuance of shares worth Rs 750 crore, along with an offer for sale worth Rs 450 crore. The proceeds derived from the fresh issuance will be utilized to strengthen SBFC Finance’s capital base.
The shares of all three companies are expected to be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
About Tata Tech:
Tata Technologies Ltd, a subsidiary of Tata Motors, is a company operating under the Tata Group that provides engineering and design services, product lifecycle management, manufacturing, product development, and IT service management to original equipment manufacturers and their suppliers in the automotive and aerospace sectors.
About Gandhinagar Oil:
Gandhar Oil Refinery (India) Limited is engaged in the operation of oil refineries. The company manufactures a range of specialty oils and lubricants, including liquid paraffin, greases, automotive lubricants, petroleum jelly, and rubber processing oils. Gandhar Oil Refinery (India) caters to customers around the globe.
About SBFC Fin:
SBFC offer financing solutions to business owners who are typically neglected by conventional banks. SBFC’s strategy involves rethinking the lending process by utilizing a “PhyGital” model that combines technology with genuine face-to-face interactions. This unique approach enables SBFC to provide loans that cater to the specific aspirations of our clients.
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