• Fri. Dec 8th, 2023

Cello World, ESAF Small Finance Bank, ASK Automotive get Sebi nod to float IPOs

New Delhi: Three companies — Cello World, ESAF Small Finance Bank, and ASK Automotive — have received capital market regulator Sebi’s go-ahead to mobilise funds through initial public offerings (IPOs).

The three companies, which filed their respective preliminary IPO papers with Sebi during June and August, obtained the regulator’s observation letters on October 9, an update with the markets watchdog showed on Tuesday.

In Sebi’s parlance, obtaining an observation letter means it’s the go-ahead to launch the public issue. 

Shares of these companies are proposed to be listed on the BSE and the NSE.

As per the draft papers, household products and stationery manufacturer Cello World’s maiden public is a complete offer for sale (OFS) of up to 1,750 crore by promoters and other selling shareholders with no fresh issue of equity share component. 

The offer includes a reservation of up to 10 crore for subscription by eligible employees. 

Those offering shares in the OFS are — Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, Gaurav Pradeep Rathod, Sangeeta Pradeep Rathod, Babita Pankaj Rathod and Ruchi Gaurav Rathod.

Mumbai-based Cello World has a product portfolio across three key categories — consumer houseware, writing instruments and stationery, and moulded furniture and related products. 

The 629-crore IPO of ESAF Small Finance Bank comprises fresh issue of equity shares aggregating to 486.74 crore and an OFS of 142.3 crore, according to the draft red herring prospectus (DRHP).  

Those selling shares in the OFS are promoter — ESAF Financial Holdings Pvt Ltd and other shareholders — PNB MetLife India Insurance Company Ltd, Bajaj Allianz Life Insurance Company Ltd.

At present, ESAF Financial Holdings owns a 62.46% stake in the small finance bank, while PNB MetLife and Bajaj Allianz Life own 4.75% and 3.89% stake in the lender, respectively.  

Proceeds of the fresh issue will be utilised to augment the bank’s Tier 1 capital base.

ESAF Small Finance Bank is one of the leading small finance banks in India.

ASK Automotive’s IPO is entirely an OFS of 2,95,71,390 equity shares by promoters — Kuldip Singh Rathee and Vijay Rathee — as per the draft prospectus.

At present, Kuldip holds a 41.33% stake in ASK Automotive and Vijay owns a 32.3% stake in the firm. 

Since the IPO of Cello World and ASK Automotive is completely an OFS, the entire proceeds will go to the selling shareholders and the company will not receive any funds from the issue.

Gurugram-based ASK Automotive is one of the largest manufacturers of brake-shoe and advanced braking systems for two-wheelers in India with a market share of about 50% in FY22. 

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Updated: 17 Oct 2023, 10:00 PM IST

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