Matrimony.com, Shalby Hospitals Get SEBI’s Nod For IPOs

Matrimony.com and Shalby Hospitals have received markets regulator SEBI’s approval to float initial public offerings.

With this, the total number of firms that have received the regulator’s approval to launch initial share-sale offers in this year reached to 21.

Matrimony.com, which runs online match making business under BharatMatrimony brand, and multi-speciality hospital chain operator Shalby Hospitals had filed their draft papers with Securities and Exchange Board of India (SEBI) in May.

The regulator issued final "observations" on Matrimony's IPO proposal on July 13 and Shalby Hospitals' draft plan on July 14, as per the information available with SEBI website.

SEBI’s observation is necessary for any company to launch its public offer.

The company is expected to raise an estimated Rs 350 crore through an IPO, sources said.

Proceeds from the issue will be utilised for advertising and business promotion activities, purchase of land forconstruction of office premises in Chennai, repayment of overdraft facilities and general corporate purposes.

Earlier, the company had filed a Draft Red Herring Prospectus (DRHP) with SEBI in 2015 to raise funds through initial share sale but did not go ahead with the plan.

Shalby Hospitals' public issue comprise fresh sale of shares worth Rs 580 crore besides an offer for sale of 10 lakh shares by promoter Vikram Shah.

Proceeds of the IPO will be utilised towards repayment of certain borrowings availed by the company besides purchasing medical equipment for existing, recently set-up as well as upcoming hospitals.

Also, the company plans to spend the funds for purchase of interior and infrastructure for upcoming hospitalsand a portion will be kept for general corporate purposes.

The equity shares of both companies are proposed to be listed on the BSE and the NSE.