IREDA, Shyam Steel Get SEBI Approval To Launch IPO
State-owned Indian Renewable Energy Development Agency and Kolkata-based firm Shyam Steel Industries have received the Securities and Exchange Board of India’s approval to launch initial public offerings.
IREDA, which filed its draft IPO papers with SEBI in July, received its observations on Sept. 27, according to the latest update on the market regulator’s website. Shyam Steel received observations on its IPO on Sept. 20. It had submitted the draft red herring prospectus for the same in June.
The observations are very important to any company for launching public issues like an IPO, follow-on public offer and rights issue.
IREDA IPO Details
According to the draft papers, the IREDA IPO comprises sale of 13.9 crore shares, or about 15 percent stake of the company. The issue includes a reservation of up to 6.95 lakh equity shares for employees.
To be sure, the public sector undertaking had filed its draft IPO papers in December 2017 and received SEBI’s approval for the same in February 2018 but couldn’t launch the offer due to tepid market conditions.
Established in March 1987, IREDA is registered as a non-banking financial company with the Reserve Bank of India. Since its inception, it supports and facilitates the policies and programmes of the Ministry of New and Renewable Energy.
Shyama Steel IPO Details
The Shyam Steel IPO consists of a fresh issue of up to 66.70 lakh shares, including 11.60 lakh shares of the promoter and up to 55.09 lakh shares of other shareholders. The IPO size is estimated at Rs 500 crore.
The Kolkata-based steelmaker plans to use the proceeds from the initial share sale for repayment of certain borrowings of the company as well as its subsidiary Shyam Steel Manufacturing and general corporate purposes.
Shyam Steel is a thermo mechanically treated rebar player having integrated steel plants. The company operates all its steel manufacturing plants in West Bengal.