Business-to-business manufacturing marketplace Zetwerk Manufacturing Business Ltd, furniture rental company Rentomojo Ltd and defence technology company Tonbo Imaging India Ltd have received regulatory approval to float their initial public offerings.
The Securities and Exchange Board of India issued its final observations–akin to its approval–to the IPO proposals of the three companies this week, according to an update on the capital markets regulator’s website. SEBI also approved the IPO proposals of Marri Retail Ltd and Gujarat Victory Forgings Ltd.
A confidential filing allows a company to keep its business and issue-related details unavailable to the public until it files the updated UDRHP incorporating the regulator’s comments.
VCCircle previously reported that Zetwerk is likely to seek a valuation of roughly $4 billion (around Rs 37,700 crore) and that the IPO size could be $550-600 million. The IPO is likely to include a large offer for sale along with primary capital. Zetwerk’s investors include Peak XV Partners, Accel, Lightspeed and Khosla Ventures.
Founded in 2018, Zetwerk supplies to industries operating in a range of sectors from consumer electronics and aerospace to defence, with more than 10 facilities across India, the United States, Mexico and Europe. Its client base includes Samsung, Volvo and Honeywell.
Rentomojo also filed its DRHP with SEBI in April. The planned IPO comprises a fresh issue of Rs 150 crore by the company and an offer for sale of about 28.4 million shares by its founder Geetansh Bamania and its investors.
​Venture capital firms Accel and Chiratae Ventures and private equity investor Madison India Capital intend to pare their stake in Rentomojo via the IPO.
Accel, the company’s biggest shareholder, plans to sell about 7.85 million shares, or about a third of its 20.92% stake. Chiratae intends to offload about 4.5 million shares, or about a third of the 13.46% stake it holds via three entities. Madison India Capital will sell 2.4 million shares, or a tad more than a third of its 6.65% holding.
Other investors paring their stake in the firm include Edelweiss Private Equity, ValueQuest’s SCALE Fund, and Pratithi Investments, the family office of Infosys co-founder Kris Gopalakrishnan. Two Japanese investors are also among the sellers–GMO Payment Gateway and Mitsui Sumitomo Insurance Venture Capital Co. Ltd.
Rentomojo, set up in 2015, rents furniture, home furnishings, appliances, and bikes.
Bengaluru-based Tonbo designs, develops and manufactures sensing, processing, communication and guidance systems for surveillance, reconnaissance, and control. It has developed a diversified product portfolio including thermal imaging cores, weapon sights, hand-held thermal imaging binoculars, targeting systems, missile seekers, fire control systems, missile guidance systems amongst others to enable autonomy on the battlefield.
The company filed its DRHP in December last year. The planned IPO doesn’t include any fresh issue but comprises only an offer for sale by its promoters and investors, which include US-based early-stage VC firm Artiman Ventures.
Artiman has offered to sell nearly half of its 1% holding in the company as part of the IPO proposed initial public offering. It is likely to generate high returns on its investment, VCCircle reported previously.