The Indian arm of Singapore-based Affle Holdings Pte Ltd, Hyderabad-based Dodla Dairy Ltd and two other companies have received regulatory approval to float their respective initial public offerings.
Chalet Hotels Ltd and Harsha Engineers Ltd are the other companies that have received approvals from the Securities and Exchange Board of India for the IPOs, information on SEBI’s website showed.
Dodla Dairy, which counts US private equity firm TPG Growth as its backer, received the SEBI nod on 17 October. The other three received regulatory approval on 19 October.
With this, the capital markets regulator has approved 61 IPO proposals so far in 2018. Last year, SEBI had cleared 46 proposals.
Affle (India) Ltd, which provides mobile commerce and marketing solutions for consumers and businesses, filed its draft IPO proposal on 16 July for an estimated issue size of $100-110 million (Rs 668-735 crore then). It comprises a fresh sale of shares worth Rs 90 crore and a secondary market sale of 5.5 million shares by Affle Holdings.
VCCircle had reported in May that Affle Holdings, which counts Times Internet and Microsoft Corporation among its key investors, was looking to list its India unit. Affle had initially planned to list the unit in its home country but market volatility in Singapore prompted the decision to list in India.
Affle’s other investors include D2C, a joint venture of NTT Docomo and Dentsu; Japan's Itochu Corp, and Asia private equity firm Centurion Investment Management.
Affle’s IPO and subsequent listing would mark a rare case where an overseas technology venture opts to go public in India, even though the foreign parent has the option of listing on overseas exchanges.
The firm hired Nomura Financial Advisory and Securities (India) and ICICI Securities as merchant bankers to arrange the IPO.
Affle was founded and incorporated in 2006 by Anuj Khanna Sohum and Anuj Kumar. The company has created a Mobile Audience as Service (MAAS) platform, besides various other platforms and services such as ad2campaign and Ripple used by global commerce and marketing firms to promote and optimise their mobile programmes.
Affle operates through seven offices worldwide and has more than 180 employees. Besides Singapore, the company has offices in Gurugram, Mumbai, Jakarta and Kuala Lumpur.
The IPO comprises a fresh issue of shares worth Rs 150 crore and a sale of 9.54 million shares by TPG and individual promoter Dodla Deepa Reddy. The total IPO size is estimated at Rs 500 crore.
Of the total secondary component, TPG has proposed to sell 7.82 million shares in the IPO.
The IPO will result in roughly 22-23% stake dilution on a post-issue basis after accounting for the fresh issue of shares. This may value the company at an estimated Rs 2,191 crore, VCCircle estimates show.
Edelweiss Financial Services and ICICI Securities are the merchant bankers helping the company manage the share sale.
Dodla was incorporated in May 1995. The company procures, processes and markets milk and value-added dairy products such as curd, ghee, butter, flavoured milk and ice cream. It gets about two-thirds of its revenue from milk and the remaining from dairy products.
The company is promoted by Dodla Sesha Reddy and Dodla Sunil Reddy. It operates under the brand names ‘Dodla Dairy’ and ‘Dairy Top’. It claims to be the second-largest by market share and the third-biggest milk procurer among private-sector dairy companies in India, with an average procurement of 1 million litres of raw milk per day.
The company operates through its factories and units in Andhra Pradesh, Telangana, Karnataka and Tamil Nadu. Internationally, it has operations in Uganda and Kenya.
Chalet Hotels, which owns hotel and apartment units such as the Lakeside Chalet Marriott Executive Service Apartments and the Renaissance Mumbai Hotel and Convention Centre, will issue fresh shares worth Rs 950 crore. The issue also involves a secondary sale of 24.68 million shares by the promoter and promoter group entities. The total issue size is estimated at Rs 1,800-2,000 crore.
In the hospitality sector, Warburg Pincus-backed Lemon Tree Hotels Ltd went public in April through a Rs 1,038 crore public issue.
Other listed peers include Tata Group’s Indian Hotels Ltd, EIH Ltd, Mahindra Holidays, Hotel Leela Ventures, and Royal Orchid Hotels.
K Raheja Corp, through its subsidiaries, does business in the real estate, hospitality, retailing and power distribution sectors.
The group is looking to use Rs 720 crore of the fresh net proceeds towards repayment or advance payment of certain loans. It will use the balance amount for general corporate purposes.
Chalet was originally incorporated in January 1986 as Kenwood Hotels Pvt. Ltd. The company owns, develops and manages high-end hotels in key metro cities in India.
Its hotel platform comprises five operating hotels, including one with a co-located serviced residence, in the Mumbai Metropolitan Region, Hyderabad and Bengaluru. The hotels offered 2,328 rooms as of 31 March 2018.
JM Financial, Axis Capital and Morgan Stanley are the merchant bankers managing the share sale.