Tata Tech, Gandhar Oil Refinery & SBFC Finance receive Sebi's approval to launch IPOs

At least three companies have received capital market regulator Sebi's nod to raise funds through initial public offerings (IPOs). These companies are Tata Motors' arm Tata Technologies, Gandhar Oil Refinery (India) Ltd and non-banking financial firm SBFC Finance. The three firms, which filed their preliminary papers with the Securities and Exchange Board of India between December 2022 and March 2023, obtained the regulator's observations during June 21-23. In Sebi's word, obtaining observation implies that it is a go-ahead to float the initial share sale.

As per the draft papers, Tata Technologies' IPO is purely an offer for sale (OFS), where the company would sell up to 9.57 crore equity shares representing 23.60 per cent of its paid-up share capital. Under the OFS, Tata Technologies' parent company Tata Motors would offload 8.11 crore shares or a 20 per cent stake in the company.

Among other shareholders, Alpha TC Holdings Pte plans to sell up to 97.16 lakh shares (2.40 per cent) and Tata Capital Growth Fund I would offload up to 48.58 lakh equity shares (1.20 per cent). This would be the first listing from the Tata Group stable since Tata Consultancy Services (TCS) in August 2004.

Upon listing, Tata Technologies would join other 28 listed Tata companies that command a combined market capitalisation (m-cap) of Rs 22.23 lakh crore, as on Monday's closing levels.

Recently, Tata Play (formerly Tata Sky) became the first company in India to use the confidential pre-filing of draft papers option for an initial share sale. It obtained the regulator's observation letter on April 26 this year. Under the pre-filing route, there is apparently no pressure on the company to go for an IPO.

In case of Gandhar Oil Refinery, the IPO comprises fresh issue of equity shares worth Rs 357 crore and OFS of 1.2 crore shares by promoters and existing shareholders

Proceeds from the fresh issue component would be used for payment of debt and for purchase of equipment and civil work required for expansion in capacity of automotive oil at Silvassa plant.

With the IPO of SBFC Finance, the non-banking lender is mulling to raise Rs 1,200 crore. The initial share offer comprises fresh issuance of shares worth Rs 750 crore and OFS of Rs 450 crore.

The proceeds from the fresh issuance would be used towards augmenting its capital base.

Shares of these three companies are proposed to be listed on BSE and NSE.

Meanwhile, Indian equity benchmarks settled with sharp gains today, led by strong buying interest in banks, financial, technology, metals and healthcare stocks.

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