Hero to Canara Robeco: SEBI clears IPOs of 6 companies
What's the story
The Securities and Exchange Board of India (SEBI) has approved the initial public offerings (IPOs) of six companies, a latest update with the markets regulator shows. The firms include Canara Robeco Asset Management Company, Hero Motors, Pine Labs, Orkla India, Manipal Payment and Identity Solutions, and Emmvee Photovoltaic Power. All these companies had submitted their draft red herring prospectus to SEBI between April and July this year, and obtained SEBI's observations during September 2-12.
OFS details
Canara Robeco AMC's IPO
Canara Robeco AMC's IPO involves 4.98 crore equity shares, entirely through an offer-for-sale (OFS) by its promoters, Canara Bank and ORIX Corporation Europe NV. Under this OFS, Canara Bank plans to sell 2.59 crore equity shares, while ORIX Corporation NV (previously known as Robeco Groep NV) will offload 2.39 crore shares. The entire proceeds from the IPO will go to these selling shareholders with no fresh issue component involved.
Fundraising strategy
Hero Motors' IPO
Hero Motors aims to raise ₹1,200 crore through its IPO. The offer includes a fresh issue of equity shares worth ₹800 crore and an OFS of shares worth ₹400 crore by promoters. O P Munjal Holdings will sell shares worth ₹390 crore, while Bhagyoday Investments and Hero Cycles will offload shares worth ₹5 crore each under the OFS. All six companies that received SEBI's nod will be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).