Sebi gives nod to 5 IPOs, including Duroflex and Hexagon:Companies to raise funds via fresh issue and OFS

SEBI has given the green light to the public issues of a total of 5 companies, including Duroflex and Hexagon Nutrition. On February 13, SEBI issued its ‘observations’ on the draft papers of these companies. Now these companies will be able to launch their IPOs in the market in the coming months. The 5 companies that have received approval include Premier Industrial Corporation, Virupaksha Organics, Hexagon Nutrition, Om Power Transmission, and mattress brand Duroflex. These companies will raise funds by issuing fresh shares and through an offer for sale. 1. Duroflex: It will issue new shares worth ₹183.6 crore. In addition, existing investors and promoters will sell 2.25 crore shares through OFS. The company may use these funds to repay its debt and increase manufacturing capacity. It is a sleep solutions company, primarily manufacturing mattresses, foam, beds, and pillows. It is quite famous for orthopedic mattresses. It has been working in this sector for about 50 years. 2. Virupaksha Organics: This IPO will be entirely a fresh issue. The company plans to raise ₹740 crore. This means the money raised from this IPO will go to the company and will be used for working capital and corporate purposes. It is a research-based pharmaceutical company. It primarily manufactures Active Pharmaceutical Ingredients (APIs) and intermediates, which are used in medicines. 3. Premier Industrial: It will issue 2.25 crore new shares in its IPO. Additionally, there will be an offer for sale of 54 lakh shares. This company manufactures raw materials for the welding industry, such as ferro alloy powder, metal powder, and various types of wires. 4. Om Power: Regarding Om Power Transmission, the company will issue 90 lakh new shares, while promoters will sell 10 lakh shares. It is an electrical engineering and contracting company. It undertakes the construction and maintenance of power transmission lines and sub-stations. 5. Hexagon Nutrition: Hexagon Nutrition’s IPO will be entirely an OFS (Offer For Sale). The company’s existing shareholders will sell 3.08 crore shares. No new funds will come to the company from this. Old investors will exit by selling their stake or making a profit. This company manufactures health drinks and clinical nutrition food for children. Additionally, it also supplies nutritional premixes to other large companies (like Amul, Dabur). What does SEBI’s approval mean? Whenever a company wants to raise money from the market, it has to submit a DRHP to SEBI. SEBI examines whether the company has provided correct information to investors. Receiving SEBI’s ‘observation’ means that the regulator no longer has any objection. After this, companies decide the IPO date and price band. Knowledge Part: What is the difference between Fresh Issue and OFS?