Patel Retail, Garuda Construction get Sebi's nod to float IPOs

Supermarket chain Patel Retail and Garuda Construction and Engineering have received capital markets regulator Sebi's approval to float initial public offerings (IPOs).

The two companies, which filed their preliminary IPO papers with the regulator between April and June, obtained their observations on August 21-23, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.

In Sebi's parlance, obtaining its observations means its go-ahead to float public issues.

Patel Retail's IPO is a mix of a fresh issue of 90.18 lakh shares and an offer for sale (OFS) of up to 10.02 lakh shares of promoters, according to the draft red herring prospectus (DRHP).

According to merchant banking sources, the IPO size has been pegged at Rs 250 crore to Rs 325 crore.

Proceeds from the fresh issuance worth Rs 60 crore will be used for the payment of debt, Rs 115 crore for funding of working capital requirements, besides a portion for general corporate purposes.

Patel Retail was established in 2008, with its inaugural store in Ambernath, Maharashtra. Since then, it has expanded its operations throughout the suburban regions of Thane and the Raigad district in Maharashtra.

Garuda Construction and Engineering Ltd's proposed IPO is a combination of a fresh issue of 1.83 crore equity shares and an offer for sale of 95 lakh equity shares by promoter PKH Ventures Ltd.

Proceeds from the fresh issue will be used to support the working capital requirement and general corporate purposes, including unidentified inorganic acquisitions.

Garuda Construction and Engineering is involved in several projects for residential, commercial, residential-cum-commercial, hospitality, infrastructure and industrial projects.

Equity shares of both companies are proposed to be listed on BSE and NSE.