Belrise Industries and Paramesu Biotech have obtained approval from the Securities and Exchange Board of India (SEBI) to launch their initial public offerings (IPOs), collectively aiming to raise ₹2,750 crore, according to recent updates from the markets regulator.
Belrise Industries to Raise ₹2,150 Crore
Belrise Industries, a leading automotive component manufacturer, plans to generate ₹2,150 crore exclusively through a fresh equity issue, without any Offer for Sale (OFS). As detailed in its Draft Red Herring Prospectus (DRHP), the company intends to allocate approximately ₹1,618 crore from the IPO proceeds towards debt repayment.As of June 2024, Belrise Industries reported outstanding borrowings amounting to ₹2,463 crore, making debt management a critical objective of this funding round.
Paramesu Biotech Targets ₹600 Crore from IPO
Paramesu Biotech, specializing in maize-based products, aims to raise ₹600 crore through its IPO. This comprises a fresh issue of shares valued at ₹520 crore and an Offer for Sale (OFS) worth ₹80 crore by its promoter, Unimark Business Solutions Private Ltd.According to the IPO draft documents, Paramesu Biotech plans to utilize ₹330 crore from the fresh proceeds to establish a new manufacturing plant with a production capacity of 1,200 tonnes per day (TPD) in Madhya Pradesh. Additionally, ₹85 crore will be used for debt repayment, with remaining funds set aside for general corporate activities.
Market Volatility Leads to Withdrawal of Two IPOs
Meanwhile, two other companies, SFC Environmental Technologies and Advanced Sys-tek, recently withdrew their IPO applications on February 27, amidst ongoing volatility and a downturn in the stock market. These firms had submitted their draft IPO documents between December and February, but have provided no official reasons for their withdrawals.SEBI’s approval process for Belrise Industries and Paramesu Biotech involved receiving preliminary IPO documentation in November and subsequently issuing observations between February 25 and 28. In regulatory terms, obtaining SEBI’s "observations" officially signifies clearance to proceed with public offerings.
Both IPOs will move forward amid cautious investor sentiment due to current market conditions.
