The Securities and Exchange Board of India (SEBI) has cleared the initial public offering (IPO) proposals of four companies between June 3 and June 6: Kent RO Systems Ltd., Karamtara Engineering Ltd., Vidya Wires Ltd., and Mangal Electrical Industries Ltd. These companies had filed their draft documents earlier this year.
The combined fundraising through these IPOs is estimated to cross ₹2,500 crore.
Karamtara Engineering plans to raise ₹1,750 crore through its public issue. The IPO includes a fresh issue of ₹1,350 crore and an offer for sale (OFS) of ₹400 crore by promoter shareholders. From the fresh proceeds, ₹1,050 crore will be used to repay existing borrowings, with the remaining funds marked for general corporate purposes.
Vidya Wires will issue new shares worth ₹320 crore, along with an OFS of 1 crore equity shares by the promoter group. The fresh capital will be used for setting up a subsidiary unit under ALCU, debt repayment, and other corporate needs. Promoters Shyamsundar Rathi and Shailesh Rathi will each sell 50 lakh shares.
Kent RO’s IPO will be a pure OFS of 1.01 crore shares, offered by promoters Mahesh Gupta, Sunita Gupta, and Varun Gupta. The company will not receive any funds from the offer. The issue is intended to meet public shareholding norms and enable partial promoter exit. Mahesh Gupta will offload over 56 lakh shares, while the others will sell smaller portions.
Mangal Electrical’s ₹450 crore IPO will consist only of a fresh issue. ₹96 crore will be used to repay borrowings, ₹120 crore for the expansion of the manufacturing unit and the Jaipur head office, and ₹122 crore for working capital. The rest will go towards general corporate expenses.
READ MORE: SEBI Eases IPO Norms for Companies with Large Public Shareholding
All 4 companies have received SEBI’s observation letter, which acts as a go-ahead for their IPO plans. Their equity shares will be listed on the BSE and NSE.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jun 11, 2025, 10:34 AM IST
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