Hexaware Tech and 5 other IPOs get SEBI green light; Anand Rathi Share's IPO paper returned

In a fresh development in the primary market, six companies have received final approval from SEBI to proceed with their IPO plans. So far, in the financial year 2024-25, 96 Indian companies have raised a record ₹161,762 crore through main board IPOs, more than three times the ₹49,436 crore mobilized by 57 IPOs during the same period last year.

Hexaware Technologies, Vikran Engineering, PMEA Solar Tech Solutions, Ajax Engineering, All Time Plastics, and Scoda Tubes are the latest firms to receive the go-ahead from the capital market regulator. SEBI issued observation letters to these companies on various dates between January 14-17, signaling approval to proceed with their offerings.

On the other hand, SEBI has returned the IPO papers of Anand Rathi Group's brokerage arm, Anand Rathi Share and Stock Brokers. The firm had filed for an IPO in mid-December, aiming to raise ₹745 crore through fresh equity issuance, but the papers were returned on January 17 without specifying the reasons.

Here’s a closer look at the six IPOs:

1. Hexaware Technologies:
Hexaware Technologies, backed by U.S. private equity firm Carlyle, filed draft papers with SEBI on September 6, 2024, aiming to raise ₹9,950 crore. If successful, it would be the largest IPO in India’s IT services sector since Tata Consultancy Services' ₹4,700 crore IPO in 2004. The IPO will be an offer-for-sale (OFS) by promoter CA Magnum Holdings, part of the Carlyle Group, which currently owns 95.03% of Hexaware. The company competes with firms like Coforge, LTIMindtree, Mphasis, and Persistent Systems.

2. Vikran Engineering:
Vikran Engineering, a Mumbai-based EPC firm specializing in power, water, and railway infrastructure projects, filed its DRHP on September 30, 2024. The company plans to raise ₹900 crore via fresh issuance and ₹100 crore through an OFS by promoter Rakesh Ashok Markhedkar. The funds raised will primarily be used for working capital needs and general corporate purposes.

3. PMEA Solar Tech Solutions:
PMEA Solar Tech Solutions, a leading manufacturer of solar tracking and mounting products, filed its DRHP on September 16, 2024. The company aims to raise ₹600 crore through fresh issuance and an OFS of up to 1.12 crore equity shares. The proceeds will be used for capital expenditure, machinery purchases, and settling dues.

4. Ajax Engineering:
Ajax Engineering, a Bengaluru-based concrete equipment manufacturer, filed its draft papers on September 30, 2024. The company plans to raise funds through an entirely OFS, offering 2.28 crore equity shares. Kedaara Capital, a private equity investor, will offload 74.37 lakh shares as part of this offering.

5. All Time Plastics:
All Time Plastics, a manufacturer of plastic consumerware products, filed its preliminary papers with SEBI on September 30, 2024. The IPO will consist of a mix of fresh equity issuance worth up to ₹350 crore and an OFS of 52.5 lakh equity shares. The promoters will offload 17.5 lakh shares each through the OFS route.

6. Scoda Tubes:
Scoda Tubes, a Gujarat-based manufacturer of stainless-steel tubes and pipes, filed its IPO papers on September 30, 2024. The company plans to raise ₹275 crore solely through a fresh issue, with no OFS component, meaning all the funds will go directly into the company.

In other news, while these IPOs have received SEBI’s approval, Anand Rathi Share and Stock Brokers’ IPO papers were returned, halting their fundraising plans for the time being.

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