Sebi approves the IPO of Tata Technologies, Gandhar Oil, and SBFC Finance

The capital market regulator Sebi has granted permission to Tata Technologies, a division of Tata Motors, Gandhar Oil Refinery (India) Ltd, and non-banking financial firm SBFC Finance to raise money via initial public offerings.

A Tuesday update from the markets watchdog revealed that the three businesses, who submitted their preliminary documents to Sebi between December 2022 and March 2023, received the regulator’s views between June 21 and 23.

Obtaining observations is Sebi’s way of saying that it has the go-ahead to float the first share offering.

According to the draught documents, Tata Technologies’ initial public offering (IPO) would only be an offer for sale (OFS), in which the business will sell up to 9.57 crore equity shares, or around 23.60% of its paid-up share capital.

Tata Motors, the parent company of Tata Technologies, would sell 8.11 crore shares under the OFS, representing a 20% ownership in the business.

Among other shareholders, Tata Capital Growth Fund I and Alpha TC Holdings Pte each have sales of up to 48.58 lakh equity shares (1.20%) and 97.16 lakh shares (2.40%) planned, respectively.

According to the draught red herring prospectus, the Gandhar Oil Refinery IPO consists of a new issuance of equity shares worth Rs 357 crore and an OFS of 1.2 crore shares by the promoters and existing shareholders.

According to market sources, Rs 500 crore would be raised via the OFS component.

The funds from the fresh issue component will be used to pay off debt, buy equipment, and complete the necessary construction work for Silvassa plant’s expansion of its capacity to produce car oil.

The money will also be used to expand production of petroleum jelly and related cosmetic products at the company’s Taloja factory, as well as to expand production of white oils by adding blending tanks there and paying for working capital needs.

The IPO, which consists of a new issue of shares worth Rs 750 crore and OFS worth Rs 450 crore, would help non-banking lender SBFC Finance raise Rs 1,200 crore.

The new 750 crore rupee issuance’s proceeds would be utilised to increase the company’s capital base.

The NBFC offers services to self-employed, salaried, small company owners, and entrepreneurs.

The BSE and NSE will list the shares of these three firms.