The IPO of jewelery retail players Senco Gold, DCX Systems and HMA Agro Industries has got the approval of market regulator SEBI.
Upcoming IPO: There is good news for the people investing in IPO. The IPO of jewelery retail player Senco Gold Ltd., electronic sub-system and cable harness maker DCX Systems and frozen meat exporter HMA Agro Industries has got the approval of market regulator SEBI. These companies had filed their papers with SEBI between March and April. They have received the observation letter during 5-7 July. It is necessary for any company to obtain an observation letter from SEBI before bringing an IPO.
Together, the three companies want to raise around Rs 1,605 crore through IPO. It is proposed to list the equity shares of the companies on both BSE and NSE markets.
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Senco Gold IPO
According to the draft papers, Senco Gold intends to raise Rs 525 crore through IPO. Under this, fresh shares up to Rs 325 crore will be issued. At the same time, equity shares worth Rs 200 crore will be sold under Offer for Sale (OFS). The proceeds under the IPO will be used for working capital requirements and for general corporate purposes.
Presently, Senco Gold has 127 showrooms – 70 company operated and 57 franchisees. Its business is spread over 89 cities and towns in 13 states of India. Some of its franchise showrooms are located in metros and areas other than Tier-I, providing greater reach in Tier-2 and Tier-3 locations. The company also sells products through different online platforms. The company also exports its jewelery wholesale mainly to Dubai, Malaysia and Singapore.
DCX Systems IPO
According to the Draft Red Herring Prospectus (DRHP), DCX Systems will launch an IPO worth Rs 600 crore. Under this, fresh shares worth Rs 500 crore will be issued. At the same time, equity shares up to Rs 100 crore will be sold under OFS. Shares will be sold by NCBG Holdings Inc. and VNG Technology as part of OFS.
The proceeds from the company’s IPO will be used to pay off debt, meet working capital requirements, and invest in its wholly owned subsidiary, Ranial Advanced Systems. In addition, the fund will also be used for capital expenditure and general corporate purposes. The Bangalore based company primarily manufactures a wide range of System Integration & Cables & Wire Harness Assemblies.
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HMA Agro Industries IPO
Frozen meat export company HMA Agro Industries wants to raise Rs 480 crore through IPO. Under this IPO, fresh shares up to Rs 150 crore will be issued. At the same time, equity shares up to Rs 330 crore will be sold under the offer for sale (OFS) by the promoters of the company.
According to the Draft Red Herring Prospectus (DRHP), shares up to Rs 120 crore will be sold by Wajid Ahmed as part of the OFS. At the same time, shares worth Rs 49 crore each will be sold by Gulzar Ahmed, Mohammad Mehmood Qureshi, Mohammad Ashraf Qureshi and Zulfikar Ahmed Qureshi. Apart from this, Parvez Alam will sell shares worth Rs 14 crore.
The company will use the net proceeds of Rs 135 crore for working capital requirements. Along with this, the fund will also be used for general corporate purposes. This Agra-based firm is one of the largest exporters of frozen Buffalo meat products in India. Its products are exported to more than 40 countries around the world. More than 90 percent of its sales come from export.