Indian Giants: Tata, Gandhar, SBFC Secure Sebi Approval for IPOs

Tata Technologies, an arm of Tata Motors, Gandhar Oil Refinery (India) Ltd and non-banking financial company SBFC Finance have received capital market regulator Sebi’s approval to raise funds through initial public offerings. The three companies, which filed their preliminary papers with Sebi between December 2022 and March 2023, obtained the regulator’s observations during June 21-23, an update with the markets watchdog showed on Tuesday. In Sebi’s parlance, obtaining observations mean its go-ahead to float the initial share sale. As per the draft papers, Tata Technologies’ IPO is purely an Offer For Sale (OFS), where the company will sell up to 9.57 crore equity shares representing approximately 23.60 per cent of its paid-up share capital. Under the OFS, Tata Technologies’ parent company Tata Motors will offload 8.11 crore shares or a 20 per cent stake in the company. Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent). The IPO of Gandhar Oil Refinery comprises fresh issue of equity shares worth Rs 357 crore and OFS of 1.2 crore shares by promoters and existing shareholders, according to the draft red herring prospectus. The fund raising through the OFS component is expected to be Rs 500 crore, market sources said. Proceeds from the fresh issue component will be used for payment of debt and for purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa plant. In addition, the funds will be utilised for expansion in capacity of petroleum jelly and accompanying cosmetic product division at the company’s Taloja plant as well expansion in capacity of white oils by installing blending tanks at the plant and funding working capital requirements. Non-banking lender SBFC Finance is looking to raise Rs 1,200 crore through the IPO, which comprises fresh issuance of shares worth Rs 750 crore and OFS of Rs 450 crore. The proceeds from the fresh issuance worth Rs 750 crore will be used towards augmenting its capital base. The NBFC caters to entrepreneurs, small business owners, self-employed and salaried individuals. Shares of these three companies will be listed on the BSE and NSE.

June 29, 2023

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Tata Technologies, Gandhar Oil Refinery (India) Ltd, and SBFC Finance, three leading entities in their respective industries, have recently received approval from the Securities and Exchange Board of India (Sebi) to initiate their initial public offerings (IPOs). These IPOs are expected to enable the companies to raise substantial funds and bolster their growth prospects. In a significant development for the Indian capital market, the three companies have cleared an important regulatory hurdle and are now on track to offer shares to the public.

Tata Technologies: Tata Technologies, a subsidiary of Tata Motors, has unveiled plans for an Offer For Sale (OFS) IPO. The company intends to sell approximately 23.60% of its paid-up share capital by offering up to 9.57 crore equity shares. Out of this total, Tata Motors will divest a 20% stake by offloading 8.11 crore shares. Alpha TC Holdings Pte and Tata Capital Growth Fund I are also expected to participate in the OFS by selling 2.40% and 1.20% of their equity shares, respectively. With this IPO, Tata Technologies aims to leverage the market’s potential and secure additional resources for its strategic initiatives.

Gandhar Oil Refinery: Gandhar Oil Refinery’s IPO consists of a fresh issue of equity shares worth Rs 357 crore, along with an OFS of 1.2 crore shares by promoters and existing shareholders. Industry insiders estimate that the OFS component alone could raise approximately Rs 500 crore. The funds generated through the IPO will primarily be utilized to address the company’s debt payments and acquire equipment for expanding the capacity of their automotive oil segment at the Silvassa plant. Additionally, the capital will be allocated towards augmenting the petroleum jelly and cosmetic product division at the Taloja plant, as well as enhancing the capacity of white oils through the installation of blending tanks and fulfilling working capital requirements.

SBFC Finance: SBFC Finance, a distinguished non-banking financial company (NBFC), aims to raise Rs 1,200 crore through its IPO. The IPO structure comprises a fresh issuance of shares worth Rs 750 crore and an OFS of Rs 450 crore. The funds generated from the fresh issuance will be instrumental in strengthening the company’s capital base. SBFC Finance is renowned for catering to a diverse range of clientele, including entrepreneurs, small business owners, self-employed individuals, and salaried professionals. This IPO will provide an opportunity for investors to participate in the growth story of this prominent NBFC.

Listing on BSE and NSE: Upon the successful completion of their IPOs, the shares of Tata Technologies, Gandhar Oil Refinery, and SBFC Finance will be listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). This will provide a broader investor base and enhance liquidity for these companies’ shares, ultimately contributing to their growth and market presence.

Conclusion: The approval granted by Sebi to Tata Technologies, Gandhar Oil Refinery, and SBFC Finance signifies a significant milestone for these companies. The IPOs are poised to attract substantial investment, enabling them to fuel their expansion plans, repay debts, and enhance their market positions. As these companies embark on their IPO journeys, investors will have the opportunity to be part of their growth stories and capitalize on their future success.

Tata Technologies Gandhar Oil Refinery SBFC Finance Initial Public Offering (IPO) Sebi Capital Market Equity Shares Offer For Sale (OFS) Bombay Stock Exchange (BSE) National Stock Exchange (NSE)

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