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PE-backed Aavas Financiers, Srei Equipment, two other firms get SEBI nod for IPO
Photo Credit: Shah Junaid/VCCircle

Housing finance company Aavas Financiers Ltd, Srei Equipment Finance Ltd and two other firms have received the regulatory nod to float initial public offerings.

The other companies that have got approval from the Securities and Exchange Board of India (SEBI) are Penver Products Ltd and Hinduja Leyland Finance Ltd.

Aavas Financiers, Srei Equipment and Hinduja Leyland Finance received the SEBI nod on 7 September while Penver Products received approval two days earlier, the capital market regulator's website showed.

The regulator has now approved IPO proposals of 46 companies so far in 2018, matching the number for the whole of 2017.

Aavas is backed by homegrown private equity firm Kedaara Capital and Swiss investor Partners Group.

Jaipur-based Aavas had filed its draft red herring prospectus (DRHP) with SEBI on 21 June. The IPO will see private equity backers Kedaara and  Swiss investment firm Partners Group sell one-fourth of their existing stake.

The IPO comprises a fresh issue of shares worth Rs 400 crore besides a secondary sale of 16.24 million shares by the PE firms as well as key members of Aavas’ management.

The IPO size was estimated at Rs 1,500-1,600 crore ($221-235 million), persons familiar with the development had told VCCircle when the DRHP was filed.

Aavas Financiers, which was earlier known as AU Housing Finance Ltd, provides housing loans to customers belonging to the low and middle-income segments in semi-urban and rural areas.

ICICI Securities, Citigroup Global Markets India, Edelweiss Financial Services, Spark Capital Advisors (India), and HDFC Bank are the merchant bankers managing the IPO.

Srei Equipment Finance

Kolkata-based Srei Equipment Finance Ltd had filed its DRHP on 28 November last year.

The offer by India’s largest equipment finance company comprises a fresh issue of shares worth Rs 1,100 crore, besides a secondary market sale of 4.38 million shares by promoter entity SREI Infrastructure Finance Ltd.

VCCircle was the first to report that Srei Equipment Finance had appointed merchant bankers to manage the IPO.

The size of the public float, estimated at Rs 1,800 crore, will result in about a 25% stake dilution, one person familiar with the development had said.

Credit Suisse Securities (India), CLSA India, ICICI Securities and Motilal Oswal Investment Advisors are the merchant bankers handling the IPO.

Hinduja Leyland Finance

Hinduja Leyland Finance, which is backed by private equity firm Everstone Capital, had filed its DRHP on 14 June this year. The IPO comprises a fresh sale of shares worth Rs 500 crore besides an offer for sale of 21.9 million shares by existing shareholders and promoter group entities.

The non-banking financial company (NBFC), which is majority-owned by commercial vehicle maker Ashok Leyland Ltd, was looking to raise funds last year as its IPO was delayed.

Everstone held a 14% stake in the NBFC as on 31 March 2016, according to VCCEdge, the data research arm of News Corp VCCircle. The promoter group companies held the remaining stake.

Everstone now owns about 7% stake after parent Ashok Leyand acquired stake from the PE firm in November last year. 

Axis Capital, Citigroup Global Markets India, and Yes Securities are the merchant bankers managing the IPO. 

Penver Products

Kerala-based seafood processing and export company Penver Products filed its DRHP on 26 June this year. 

The IPO comprises a fresh sale of shares worth Rs 242 crore besides an offer for sale of 4.10 million shares by the promoters.

Penver joins half a dozen seafood processing companies looking to go public.

Firms like Falcon Marine, Sandhya Marines Ltd, Nekkanti Sea Foods Ltd, Devi Fisheries Ltd and Devi Sea Foods Ltd  are planning an IPO, with some of them having started the ground work for share sales.

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