Au Financiers, PSP Projects get go-ahead for IPOs from Sebi
Au Financiers, a Rajasthan-based non-banking finance company, and construction firm PSP Projects have received Securities and Exchange Board of India's (Sebi) approval to float initial public offerings (IPOs).
Au financiers and PSP Projects had filed draft red herring prospectus (DRHP) with the Sebi in February and December respectively.
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Sebi gave its 'observation' to the NBFC on March 22, which is necessary for any company to launch public offer, while the construction firm received 'observation' from the regulator on March 24.
Au financiers' IPO comprises sale of 53,422,169 shares by the existing shareholders, which include promoters and the promoter group.
According to sources, the IPO is expected to garner Rs 800-1,000 crore.
"Our company expects that listing of the shares will enhance our visibility and brand and provide liquidity to its existing shareholders. Listing will also provide a public market for the shares in India," according to the draft papers.
ICICI Securities, HDFC Bank, Motilal Oswal Investment Advisors and Citigroup Global Markets India are the merchant bankers to the issue.
Au financiers, that primarily serves low and middle-income individuals, received a licence from the Reserve Bank of India (RBI) to set up a small finance bank in December 2016.
"Going forward, we intend to expand and strengthen our business model to offer a diverse suite of banking products and services by leveraging our asset-based lending strengths, existing customer base and cost efficient, technology driven hub-and-spoke branch operating model to create a successful new small finance bank," Au financiers said.
PSP Projects' public issue comprises a fresh issue of up to 72 lakh equity shares and offers for sale of up to 28.80 lakh units by existing shareholders.
Proceeds from the fresh issue will be utilised towards funding working capital requirements and for general corporate purposes.
Karvy Investor Services and Motilal Oswal Investment Advisors will manage the company's maiden public offer.
The Ahmedabad-based firm is a multi-disciplinary construction firm and provides its services ranging from planning and design to construction and post-construction activities.
Historically, it has focused on projects in the Gujarat region. More recently, the firm geographically diversified their portfolio of services and is undertaking or has bid for projects pan India.