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As many as three companies- VLCC Health Care Limited, Parag Milk Foods Private Limited and Narayana Hrudayalaya Limited– may file draft IPO prospectus with the Securities and Exchange Board of India (SEBI) by the end of this month.
VLCC is vying to raise INR600-700 crore while Narayana Hrudayalaya expects to raise INR700 crore. Parag Milk Foods expected to raise the maximum among the three with INR900-1,000 crore. Talks with investment bankers for these IPOs are in the pipeline.
With the IPOs, private equity investors in these companies may offload their shares partially. It will also help to raise primary capital for funding business expansion plans along with easing the debts.
Filing draft prospectus this month will allow the companies to file with financial information till fiscal year 2014/15. Companies filing prospectus after September, will be required to additionally furnish financial performance for the quarter ended June.
VLCC Health Care Limited has the backing of private equity investor Everstone Group while Parag Milk Foods Private Limited counts Motilal Oswal Private Equity and IDFC Alternatives among investors. JPMorgan and UK’s CDC development finance institution have invested in Narayana Hrudayalaya Limited. It is learnt that 10% of VLCC issue shall be an offer for sale by existing promoters and investors.
The total number of companies applying for IPOs is mounting since the second half of 2014. This month two companies- Dr. Lal Pathlabs Private Limited and TeamLease Services Limited filed draft IPO papers with the regulator.
Read Also: Dr Lal Path Labs files prospectus for IPO
Similarly, IPO approvals by the market regulator are also increasing. In total, 28 companies have received SEBI approvals so far this year to bring IPOs and 15 companies have successfully raised INR6,348 crore. This highlights the huge contrast with the IPO market’s performance in the previous two years when INR 1,284 crore was raised by three firms and INR1,201 crore was raised by five firms by way of IPO in 2013 and 2014 respectively.