Upcoming IPOs: Carlyle-acquired Hexaware Tech, five others receive SEBI approval to float IPOs | Stock Market News

Upcoming IPOs: Six major companies have received approvals from the capital markets regulator, the Securities and Exchange Board of India (SEBI), to raise funds via public initial public offerings (IPOs). According to SEBI’s circular on Monday, January 20, the draft papers of Hexaware Technologies, PMEA Solar Tech Solutions, Scoda Tubes, Ajax Engineering, All Time Plastics, and Vikran Engineering are approved. However, the market watchdog returned the IPO papers of Anand Rathi Share and Stock Brokers.

The regulator had issued observation letters on the preliminary papers of PMEA Solar Tech Solutions and Vikran Engineering on January 14 and Scoda Tubes on January 15. Hexaware Technologies and Ajax Engineering received the observation letter on their draft red herring prospectus (DRHP) on January 16 and All Time Plastics on January 17. In SEBI’s parlance, obtaining observation letters means its go-ahead to launch an IPO. The companies will collectively mobilise more than ₹10,000 crore through public issues.

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Upcoming IPOs: The six that received SEBI’s nod for IPO are as follows-
 

Hexaware Technologies IPO

Mumbai-headquartered Hexaware Technologies, a global digital and technology services company, the IPO is a complete offer for sale (OFS) of equity shares, aggregating up to ₹9,950 crore by promoter CA Magnum Holdings, part of US private equity firm Carlyle Group. CA Magnum Holdings has a 95.03 per cent stake in the IT company.

If successful, Hexaware’s IPO would be the largest in the country’s IT services space since Tata Consultancy Services (TCS)’ ₹4,713-crore initial share sale over two decades ago. Hexaware Technologies serves customers across the Americas, Europe and Asia-Pacific (including India and the Middle East).

The company manages its business through six operating segments: financial services, healthcare and insurance; manufacturing and consumer; hi-tech and professional services; banking; and travel and transportation. Hexaware’s previous promoter, Baring Private Equity Asia, delisted the company in 2020. Almost a year after the delisting, Carlyle acquired Baring’s stake in Hexaware.

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For the six months ended June 2024, its revenue from operations was ₹5,684 crore, with a net profit of ₹553 crore. Hexaware Technologies hired Kotak Investment Banking, Citi Global Markets, J.P. Morgan, HSBC Securities and Capital Markets, and IIFL Securities to manage the share sale.

In 2021, Carlyle acquired Hexaware from Baring Private Equity Asia (now EQT) for approximately $3 billion, making it India’s largest private equity deal. If Hexaware’s listing plans succeed, it will return to the domestic stock exchanges after four years.

NSE data shows that it was initially listed on 14 June 2002. Before Carlyle acquired Hexaware, its previous promoter, Baring Private Equity Asia, had delisted its shares from the exchanges and taken the company private in 2020.

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Vikran Engineering IPO

Infra EPC company Vikran Engineering’s IPO will combine a fresh issue of shares up to ₹900 crore with an OFS of up to ₹100 crore by the promoter to raise ₹1,000 crore. Investors like the India Inflection Opportunity Fund and Ashish Kacholia back the Mumbai-based company.

Chairman and Managing Director Rakesh Ashok Markhedkar is the sole promoter offloading shares via the OFS route. The proceeds from the fresh issue, up to ₹625.5 crore, will fund working capital requirements for fiscal 2025 and 2026. The rest will be deployed for general corporate purposes.

Vikran Engineering is a fast-growing engineering, procurement and construction (EPC) company in the Indian infrastructure space. It provides end-to-end services from conceptualisation, design, supply, installation, testing, and commissioning on a turnkey basis and serves the power and water sectors.

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PMEA Solar Tech Solutions IPO

PMEA Solar Tech Solutions’ proposed IPO combines fresh share issues of up to ₹600 crore with an OFS of up to 1.12 crore shares by promoters. Founded in 2006, it specialises in solar tracking mounting systems and equipment. As of March 2024, it had an annual installed capacity of 16 gigawatts (GW) of module mounting assembly and six GW of rolled products. 

Proceeds from the fresh issue to the extent of ₹119.55 crore will be used for the setting up of certain manufacturing facilities undertaken through investment in the wholly owned subsidiary PMSS, ₹120.45 crore for the purchase of machinery/equipment, ₹240 crore for the payment of debt and remaining funds for general corporate purposes.

Ajax Engineering IPO

Kedaara Capital-backed concrete equipment manufacturer’s IPO is an OFS of 2.28 crore equity shares owned by promoters and investor shareholders. As part of the OFS, private equity investor Kedaara Capital will offload 74.37 lakh shares. The Bengaluru-headquartered company’s IPO is completely an OFS, and Ajax Engineering will not receive any proceeds from the IPO. 

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The promoter-selling shareholders include Krishnaswamy Vijay, Kalyani Vijay, Jacob Jiten John, Jacob Hansen Family Trust, Susie John, and Kedaara Capital. Ajax provides a diverse range of related equipment, services and solutions across the concrete application value chain. It operates four assembling and manufacturing facilities in Karnataka, each specializing in distinct product lines.

All Time Plastics IPO

Consumerware products maker All Time Plastics IPO comprises a fresh issuance of shares worth ₹350 crore by the company and an OFS of 52.5 lakh equity shares by the existing shareholders. The Maharashtra-based company may consider raising up to ₹70 crore in a pre-IPO round. Promoters Kailesh Punamchand Shah, Bhupesh Punamchand Shah, and Nilesh Punamchand Shah will sell 17.5 lakh shares each in the OFS. 

Proceeds from the fresh issue will be used to pare debt and expand capacity. The plastic products manufacturing company plans to use ₹133 crore from the IPO proceeds to purchase equipment and machinery for its Manekpur facility in Gujarat and ₹120 crore to repay outstanding borrowings.

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The company is primarily a white-label manufacturer, producing consumer ware for customers to market under their own brand names. These customers include global retailers like IKEA, Asda Stores, Michaels Stores Inc., and Tesco Plc. It also sells products to Indian retailers, including Spencer’s Retail.

Scoda Tubes IPO

Gujarat-based Scoda Tubes is entirely a fresh issue of equity shares aggregating up to ₹275 crore. The company is a stainless-steel tubes and pipes manufacturer catering to diverse customers, such as EPC and industrial companies engaged in oil and gas, chemicals, fertilisers, transportation, power, etc.

Regarding the IPO proceeds, up to ₹105 crore will be used for capital expenditures to expand the production capacity of seamless tubes and pipes by 10,000 million tonnes per annum and welded tubes and pipes by 12,130 MTPA. ₹110 crore will be used for incremental working capital requirements. The remaining funds will be used for general corporate purposes.