PE-backed SSIPL and AGS Transact get SEBI’s approval for IPO

SSIPL Retail Pvt Ltd (formerly Moja Shoes), a company which manufactures shoes for various international brands and also runs a retail chain for footwear, and Mumbai-based payment solutions and products firm AGS Transact Technologies Ltd, have received a green signal from capital markets regulator Securities and Exchange Board of India (SEBI) for their proposed initial public offers (IPOs).

These two join a queue of companies which are waiting in the wings to float their public issues having received SEBI nod since January this year. They include brokerage firm SMC Global, engineered systems and solutions manufacturer Uniparts India, power infrastructure service provider Power Mech Projects, Manpasand Beverages, Navkar Corporation and Precision Camshafts.

SSIPL Retail

SSIPL Retail, which is also a retailer for Nike in India, had filed for an IPO in March this year. Although the size of the issue is not disclosed, it is learnt to be around Rs 250-300 crore.

The IPO would include public issue of 2.98 million shares; 1 million fresh shares besides offer-for-sale of 1.58 million shares by Tano Capital and 0.4 million by private shareholder Rajesh Sahgal.

Through this IPO, Tano Capital will exit SSIPL for around Rs 120-160 crore, making a multi-bagger exit on its decade-old investment.

The company plans to use the money for general corporate purposes, to invest in the subsidiary SSIPL Lifestyle and for expanding existing manufacturing facilities.

It had previously filed documents for an IPO in September 2011 when it was looking to raise over Rs 75 crore besides giving exit to one of its two private investors, Halcyon. However, it later withdrew the documents.

AGS Transact Technologies 

AGS Transact  had filed the draft red herring prospectus with SEBI to raise over Rs 1,350 crore via IPO in March.

The firm is looking to raise Rs 400 crore through a fresh issue besides an offer for sale by both its private equity investors TPG Capital and Actis besides its promoter.

Of the proceeds from fresh issue, the company plans to use Rs 310 crore for repayment of debt.

The payment solutions provider operates in three segments—banking automation solutions, banking payment solutions and other automation solutions.

TPG Capital invested around Rs 190 crore in the company partly (Rs 20 crore) through shares acquired from the promoters while Actis had invested around Rs 220 crore, again partly (Rs 50 crore) through a stake purchase from the promoter. TPG Capital and Actis currently hold almost 26 per cent stake and 16.4 per cent stake in the firm, respectively.

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