Fincare Small Finance Bank, Western Carriers receive Sebi's approval for IPOs

Fincare Small Finance Bank Ltd and logistics company Western Carriers (India) Ltd have obtained approval from the capital markets regulator, Sebi, to raise funds through initial public offerings (IPOs).

The two companies, which submitted preliminary IPO papers to the Securities and Exchange Board of India (Sebi) between May and June, received observation letters from the regulator between September 15 and 22, as indicated in an update from Sebi.

In Sebi's terminology, obtaining its observation letter signifies clearance to proceed with the public issue.

IPO details 

As per the draft paper, Fincare Small Finance Bank's IPO includes a fresh issue of equity shares valued at up to Rs 625 crore and an Offer for Sale (OFS) comprising up to 1.7 crore equity shares by a promoter and investors.

Entities participating in the OFS include promoter Fincare Business Services Ltd, and investors such as Wagner, True North Fund V LLP, Indium IV (Mauritius) Holdings Ltd, Omega TC Holdings PTE Ltd, and Leapfrog Rural Inclusion (India) Ltd. Additionally, investors like Kotak Mahindra Life Insurance Company, Edelweiss Tokio Life Insurance Company, Bharti AXA Life Insurance Company, Silver Leaf Oak (Mauritius) Ltd, Tata Capital Financial Services Ltd, and Zuno General Insurance (formerly known as Edelweiss General Insurance Company) will also sell shares in OFS.

The bank intends to use the net proceeds from the fresh issue to bolster its Tier-1 capital base for future capital requirements.

Western Carriers' IPO comprises a fresh issue of equity shares amounting to up to Rs 500 crore and an OFS of up to 93.29 lakh equity shares by promoter Rajendra Sethia, as per the Draft Red Herring Prospectus (DRHP).

The Kolkata-based company plans to use the funds from the fresh issue for purposes such as prepayment of specific outstanding borrowings, capital expenditure funding, and general corporate needs.

Both companies' shares are set to be listed on the BSE and NSE stock exchanges.

(With PTI Inputs)