The Securities and Exchange Board of India (SEBI) has approved initial public offerings (IPOs) for four companies: Kent RO Systems, Karamtara Engineering, Mangal Electrical Industries, and Vidya Wires.
Kent RO Systems: Enthusiasm is building in the Indian market as SEBI has approved IPOs for four prominent companies, including Kent RO Systems, Karamtara Engineering, Mangal Electrical Industries, and Vidya Wires. Meanwhile, Oswal Pumps has announced the dates and price band for its much-anticipated IPO, opening on June 13th and closing on June 17th.
This news is significant not only for investors but also signals a resurgence in primary capital raising activity within the Indian equity market.
Kent RO Systems: Entirely OFS-Based IPO
Kent RO, a leading water purifier company in India, has received SEBI approval for a completely Offer For Sale (OFS)-based IPO. The company will sell 1 crore equity shares offered by its promoters. This means the IPO proceeds will go directly to the promoters, not the company. This offering provides investors with an opportunity to participate in India's rapidly growing water purification segment.
Karamtara Engineering: Preparing for a ₹1,750 Crore Mega IPO
Karamtara Engineering, specializing in power transmission towers and engineering products, plans a combined IPO of ₹1,350 crore in fresh equity shares and ₹400 crore through OFS. This will be the largest of the four IPOs. The company intends to use the funds to expand production capacity, repay debt, and invest in new projects. Given the government's investment in the energy and infrastructure sectors, Karamtara's IPO is expected to attract significant investor interest.
Mangal Electrical Industries: 100% Fresh Issue
Mangal Electrical Industries, specializing in transformer manufacturing, has received approval for a ₹450 crore fresh issue. The company plays a vital role in the growth of the energy sector and grid modernization. Mangal Electrical plans to utilize the IPO proceeds for new plants, R&D, and market expansion. The company's shares will be listed on both BSE and NSE.
Vidya Wires: Entering the Market with a Mixed Structure
Vidya Wires, a manufacturer of winding wires, will include a ₹320 crore fresh issue and an OFS of 1 crore shares in its IPO. This wires company supplies raw materials to the automotive, electrical equipment, and motor manufacturing industries. After receiving SEBI's approval, these four companies will determine their launch timelines based on market conditions.
Oswal Pumps: IPO Opens June 13th, Total Value ₹1,387 Crore
Similarly, Oswal Pumps has announced the dates for its much-anticipated ₹1,387.34 crore IPO. It will open on June 13th and close on June 17th, with a price band of ₹584-614 per share. Oswal Pumps' IPO is divided into two parts:
- ₹890 crore fresh issue
- ₹497.34 crore OFS, with promoter Vivek Gupta selling 81 lakh shares
Fund Allocation:
According to the company, the IPO proceeds will be used for:
- Meeting capital expenditure,
- Equity investment in Oswal Solar,
- Setting up a new manufacturing unit in Karnal (Haryana),
- Debt repayment,
- And general corporate purposes.
- Oswal Pumps is a leading manufacturer of submersible pumps, induction motors, and solar power-related machines in India, selling its product range under the ‘Oswal’ brand name.
Market Focus on these IPOs
Market analysts and investors view these five IPOs positively. Given the current economic climate and government policies toward industries, there's considerable enthusiasm for investment in these companies. Experts believe that with proper pricing and timing, these IPOs could offer long-term benefits to investors.
