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IREDA, Route Mobile, Montecarlo take second shot at IPOs
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State-run Indian Renewable Energy Development Agency Ltd (IREDA) has received regulatory approval to float an initial public offering while Montecarlo Ltd and Route Mobile Ltd have refiled their IPO documents.

The Securities and Exchange Board of India issued final observations to IREDA’s proposal on September 27, according to information published on SEBI’s website.

This makes IREDA, which finances green energy projects, the 22nd company to receive regulatory clearance this year for an IPO. SEBI had approved 72 IPO proposals last year and 46 in 2017.

IREDA had refiled its IPO proposal two months ago. Its IPO comprises a sale of 139 million fresh shares.

The company had previously filed its IPO application in December 2017. It received a go-ahead from the regulator in February 2018. However, IREDA – like many other companies– could not launch their share sales owing to an unfavourable market condition.

The company plans to raise an estimated Rs 700-750 crore from the IPO, according to two people familiar with the matter. It had earlier hoped to raise about Rs 850 crore, but the stress in India’s banking sector and liquidity crunch in the shadow banking segment after the collapse of IL&FS Ltd last year has affected the valuation of many lenders.

The government owns 100% of the company. The IPO will result in a dilution of a 15.05% stake on a post-issue basis, after accounting for shares proposed to be sold to IREDA employees. 

IREDA will join listed peers such as state-owned Power Finance Corporation as well as PTC India Financial Services and L&T Finance Holdings Ltd that provide loans to the renewable energy sector. 

Montecarlo

Ahmedabad-based civil construction firm Montecarlo has re-filed its draft prospectus comprising a fresh issue of shares worth Rs 450 crore and a sale of 3 million shares by its promoter Kanubhai Patel Trust.

The IPO size is estimated at Rs 500-550 crore, said one person aware of the matter. After accounting for the fresh issue of shares, the offering may result in a stake dilution of about 15%, VCCircle estimates show.

Montecarlo had filed its IPO plan with SEBI in May 2018 and had received a nod in July 2018. 

In June last year, VCCircle reported that the company faced some legal hurdles with an apparel maker by the same name. Ludhiana-based Monte Carlo Fashions Ltd, which listed on the stock exchanges in late 2014, had filed a civil suit at a district court in the Punjab city, following which a judge restrained Montecarlo Ltd from going ahead with its IPO till July 9, 2018.

Route Mobile

Messaging and voice application programming interface company Route Mobile has also refiled its draft prospectus with the market regulator for an IPO. 

The IPO comprises a fresh issue of shares worth Rs 240 crore and a secondary market sale of shares worth Rs 360 crore by the promoter Sandipkumar Gupta and Rajdipkumar Gupta. 

VCCircle was first to report about the company’s IPO plans in early 2018.  

The company had filed its IPO plan in Januaary 2018 and received a green signal in August 2018.

An IPO and listing will make Route Mobile the first company in the mobile communication services segment to go public. 

In December 2010, One97 Communications Ltd, the parent of e-payments and e-commerce firm Paytm, had filed a draft prospectus with SEBI for an IPO but subsequently shelved its plans, citing volatile market conditions.

Singapore-based Affle Holdings Pte. Ltd, which provides mobile commerce and marketing solutions for consumers and businesses, went public two months ago.

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