Flemingo Travel Retail, a leading duty-free and travel retail operator, has received capital market regulator SEBI’s go-ahead to collect Rs 2,600 crore through an initial public offer.
With this, the total number of companies getting clearance from the Securities and Exchange Board of India to float a maiden offer this year has reached 29.
The company filed its draft papers with SEBI in February and received its “observations” on June 22, necessary for every firm to launch a public issue, the latest update with the market regulator showed.
Going by the draft prospectus, Flemingo will issue fresh shares worth Rs 2,423 crore, besides an offer for sale of 11,29,500 scrips by one of its subsidiary, Flemingo Duty Free Shop Mumbai Pvt Ltd.
According to merchant banking sources, size of the IPO is estimated to be Rs 2,600 crore.
Also Read: SEBI Makes Going To Market Easier
The money raised through the issue will be utilised towards “acquisition of 100 percent of the equity interest in Flemingo International (UK) Ltd. from corporate promoter, Flemingo International.”
It will also be used to buy all shares of Flemingo Dutyfree Shop Private Ltd. from Flemingo International and certain individual members of the promoter group—Viren Ahuja, Arjun Ahuja, Karan Ahuja, and Symbolic Infra Projects.
ICICI Securities, Yes Securities, Axis Capital, Credit Suisse Securities, HSBC Securities and Capital Markets will manage the company’s public issue.
Flemingo is a global travel retailer with leading position in Indian and Sri Lanka travel retail markets, where it operates core duty-free stores and the aggregate retail area of core duty-free stores.