As the IPO-action-packed year is drawing to an end, two companies have received the nod from market regulator, SEBI to float their IPOs. The companies are Anil Aggarwal’s Sterlite Power Transmission and Nashik-based ESDS Software Solution.
They have received the Securities And Exchange Board of India’s (SEBI) approval to raise capital via an initial share sale. Both companies had filed their preliminary IPO papers in August and September. To know more, take a look at the details below.
Details Regarding the IPO Approval of ESDS and Sterlite Power
- An observation letter from SEBIcame in on 2 December 2021 and 3 December 2021 for Sterlite Power and ESDS Software Solution, respectively. The observation letters contained the approvals for the respective companies to launch their IPOs.
- Sterlite Power Transmission is seeking to raise Rs. 1,250 crores from the initial share sale.
- This company may go for a pre-IPO placement of up to Rs. 220 crores. Sterlite Power will decrease the issue size accordingly.
- ESDS Software Solution’s IPO consists of a new issue of shares at Rs. 322 crores. There will also be an offer of sale of 2.15 crores of equity shares by the investor shareholder and promoter groups.
- The breakup of this offer of sale is as follows:
|Name of the investor||Equity Shares|
|South Asia Growth Fund II LP||1.68 crores equity shares|
|GEF ESDS Partners LLC||42.31 lakh equity shares|
|Sarla Prakashchandra Somani||4 lakh equity shares|
|South Asia EBT Trust||34,000 equity shares|
- ESDS Software Solutions may consider a pre-IPO placement of Rs. 60 crores. If this issue is successful, then the IPO size will be reduced.
- Equity shares of both companies will be listed on the National Stock Exchange and the Bombay Stock Exchange.
About Sterlite Power and Its IPO
Sterlite Power is an electricity transmission firm. It is a part of the Vedanta Group and has two business sectors:
- Global infrastructure
The objectives of the IPO are to repay the debt of the company and its division, Khargone Transmission Ltd.
About ESDS Software Solutions and Its IPO
ESDS Software Solutions was established in 2005. The company is a cloud service provider. Proceeds from this sale of shares will be used for the following purposes:
- Purchase cloud computing equipment
- Repay loans
- Regular corporate purposes
- Achieve long-term capital requirements
It remains to be seen how the public offerings of these two companies perform. However, if you are keen on investing in these IPOs, do so only after thorough analysis and careful study. Also, keep an eye on this space to stay updated with the latest stock market news.
Frequently Asked Questions
- How much is Sterlite Power looking to raise?
Ans. As per the draft papers, they are looking to raise Rs. 1,250 crores.
- Who are the lead managers of the Sterlite Power IPO issue?
Ans. JM Financial, ICICI Securities, and Axis Capitals are the lead managers to the issue.
- What is the cost of equipment purchase for ESDS Software Solutions going to be?
Ans. ESDS Software Solutions has estimated the cost of the equipment at Rs. 155 crores.