As many as five companies including Veritas Finance, Laxmi India Finance and Ajay Poly, have received SEBI’s go ahead to raise funds through an initial public offering (IPOs), an update with the markets regulator showed on Tuesday.
Rajasthan-based Jajoo Rashmi Refractories and Kolkata-based agro-based company Regaal Resources also received SEBI’s nod to float initial share-sales.
These five companies, which filed their preliminary IPO papers with SEBI in December and January, obtained their observations during April 29-30, the data showed.
In SEBI’s parlance, obtaining its observations means approval to launch the public issues.
Veritas Finance is planning to raise ₹2,800 crore through its IPO — comprising a fresh issue of equity shares valued at ₹600 crore and an Offer-for-Sale (OFS) of equity shares worth ₹2,200 crore by the investor and individual selling shareholders, according to the draft red herring prospectus (DRHP).
Under the OFS, shares worth ₹550 crore each would be offloaded by Norwest Venture Partners X – Mauritius and Kedaara Capital Fund II LLP, ₹500 crore by British International Investment plc, ₹425 crore by Lok Capital Growth Fund, and ₹75 crore by Growth Catalyst Partners LLC. Additionally, individual shareholders will also be divesting stakes.
The company, a retail focused non-deposit taking NBFC, proposes to utilize the net proceeds towards augmenting its capital base to meet future business requirements of the company towards onward lending.
NBFC player Laxmi India Finance’s proposed IPO is a combination of a fresh issue of 1.04 crore shares and an OFS of 56.38 lakh shares by promoters.
Proceeds from the fresh issue would be used to shore up its capital base to meet future capital requirements towards onward lending and for general corporate purposes.
Refrigeration sealing solutions firm Ajay Poly’s IPO is a mix of fresh issue of shares of up to ₹238 crore and an OFS of up to 93 lakh equity shares by the promoters.
Funds from the fresh issue will be utilised for debt payment, supporting capital expenditure requirements towards the purchase of equipment, plant, and machinery at Noida Unit, Karegaon, Shirwal, Chennai Unit, and its registered office. A part of the proceeds will also be used for general corporate purposes.
Regaal Resources IPO consists of a fresh issue of shares worth up to ₹190 crore and an offer-for-sale of up to nine million equity shares by the promoter.
Proceeds from the fresh issue worth ₹147 crore will be utilised for repayment and prepayment of borrowings and general corporate purposes.
The IPO of Jajoo Rashmi Refractories will only comprise a fresh issue of up to ₹150 crore, with no OFS component, according to the draft red herring prospectus.
Funds will be used for establishing new manufacturing facilities to expand production capabilities of ferro alloys at Bokaro, Jharkhand, and to support working capital requirements, and for general corporate purposes.
On the other hand, Earthood Services withdrew its draft IPO documents on April 28. The preliminary papers were received by SEBI on January 6, the update showed.
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Published on May 6, 2025
