Upcoming IPO: Travel booking platform ixigo and steel wire maker Bansal Wire Industries have received the approval of the Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO), according to an update from the market regulator on Wednesday. Both the companies, which filed their IPO documents with SEBI in February and March, received their comments during May 14-17.
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Ixigo IPO
Gurugram-based Le Travenews Technology’s, parent company of Ixigo, proposed IPO will be a combination of a fresh issue of equity shares worth Rs 120 crore and an offer for sale (OFS) of up to 6.66 crore equity shares by existing shareholders, according to the draft red herring prospectus (DRHP). SAIF Partners India IV Ltd, Peak Investment Partners III Mauritius Ltd, and WestBridge Capital will sell shares through OFS.
The proceeds from the fresh issue of Rs 45 crore will be used to meet the working capital requirements of the company and Rs 26 crore will be used to invest in technology as well as data science, including cloud and server hosting, and artificial intelligence (AI).
Additionally, the funds will be used to support inorganic growth through acquisitions and for general corporate purposes. Also, the company plans to raise Rs 24 crore in the pre-IPO round. If such placement is done, the size of the new issue will be reduced.
The company’s total income increased to Rs 517 crore in the financial year ended March 2023 from Rs 385 crore in the previous financial year. The company made a profit of Rs 23.4 crore for the year ended March 2023, compared to a loss of Rs 21 crore in the previous financial year.
Bansal Wire Industries IPO
According to the draft paper, the IPO of Bansal Wire Industries is a completely fresh issue of equity shares worth Rs 745 crore. The funds will be used to repay loans, support the working capital requirements of the company, and for general corporate purposes.
Bansal Wire Industries is engaged in the business of manufacturing and exporting steel wires. It operates in three broad segments ‘High Carbon Steel Wire, Mild Steel Wire (Low Carbon Steel Wire), and Stainless Steel Wire. Additionally, the company is planning to add a new segment of specialty wires through its upcoming plant in Dadri, which will help it grow and expand its market presence in the upcoming financial year.
Additionally, SEBI returned the draft IPO document of Vasuki Global Industries on May 16 without assigning any reason. The draft papers were filed last month. Additionally, Raghuveer Exim Ltd withdrew its draft IPO papers on May 13. The draft document was filed in April.
(With PTI’s Input)
