Braving the volatile market and growing global uncertainty, India Inc is gearing up again to raise fresh capital from the primary markets.
Four large corporates – Runwal Enterprises, Jain Resource Recycling, Anand Rathi Share and Stock Brokers, and EDS Software – filed their Draft Red Herring Prospectus with capital market regulator SEBI on Tuesday to mop-up ₹4,345 crore through initial public offering (IPO).
Fund raising through IPO was hit by relentless selling by foreign portfolio investors (FPIs), geo-political developments and slowing economic growth. The benchmark Sensex was down 12 per cent to 76,024 points on Tuesday from its all-time high of 85,978 points registered last September.
Mumbai-based real estate major Runwal Real Enterprises has filed DRHP to raise ₹1,000 crore through an IPO. The company will issue fresh shares of ₹2 face value to raise ₹1,000 crore. It has no offer-for-sale component from existing promoters.
The company may consider a pre-IPO placement of ₹200 crore, which will not exceed 20 per cent of the fresh issue.
Of the overall proceeds, the company will use ₹650 for repaying outstanding borrowings, besides funding acquisition of future real estate projects and general corporate purposes.
As of September-end, 2024, Runwal Enterprises has an aggregate developable area of about 49 million sq ft of completed, ongoing and upcoming projects.
For the six months ended last September, Runwal’s consolidated revenue and net profit was at ₹271 crore and ₹26 crore respectively.
Other firms
Jain Resource Recycling, a non-ferrous metal recycling company, plans to raise ₹2,000 crore through fresh share issuance of ₹500 crore and an offer for sale of ₹1,500 crore.
The offer for sale comprises equity shares of ₹1,430 crore by promoter Kamlesh Jain and equity shares of ₹70 crore by Mayank Pareek, an early investor.
Anand Rathi Share and Stock Brokers plans to raise ₹745 crore through fresh equity issuance of ₹5 each. The company is planning a pre-IPO placement of ₹149 crore.
The broking firm will use ₹550 crore to fund its long-term working capital requirements and general corporate purposes.
ESDS Software Solution, an AI-enabled cloud and Data Centre infrastructure company, has refiled DRHP to mop-up ₹600 crore through IPO. The company had earlier filed papers for IPO in September 2021. It may consider a pre-IPO placement of ₹120 crore.
