Sebi clears IPOs of Sathya Agencies, Kanohar Electricals and Torrent Gas

The primary market pipeline continues to gather momentum, with consumer electronics retailer Sathya Agencies, transformer manufacturer Kanohar Electricals and city gas distributor Torrent Gas receiving the Securities and Exchange Board of India's (Sebi) approval to launch their initial public offerings (IPOs).

Sathya Agencies and Kanohar Electricals had filed their draft papers with the capital markets regulator in March and January, respectively, while Torrent Gas opted for the confidential pre-filing route in March.

Sebi issued its final observations for the three companies between June 22 and June 25, according to information available on the regulator's website.

Sathya Agencies eyes ₹600 crore IPO

Chennai-based Sathya Agencies plans to raise ₹600 crore through its public issue, comprising a fresh issue of equity shares worth up to ₹300 crore and an offer for sale (OFS) of shares aggregating to ₹300 crore by promoters Johnson Asaria, J. John Sathya and Charles Packiaraj.

The company intends to utilise ₹175 crore from the fresh issue proceeds towards repayment or prepayment of certain borrowings and ₹35 crore for making partial payment related to the acquisition of its wholly owned subsidiary, Unilet Appliances. The remaining funds will be used for general corporate purposes.

Sathya Agencies is among South India's largest consumer durables and electronics retailers, maintaining commercial relationships with more than 150 domestic and international original equipment manufacturers and authorised distributors. Its portfolio includes brands such as LG, Sony, Daikin, Blue Star, Whirlpool, Haier, Panasonic, Havells and O General.

Kanohar Electricals plans ₹300 crore fresh issue

Uttar Pradesh-based Kanohar Electricals has secured Sebi's nod for an IPO comprising a fresh issue of equity shares worth up to ₹300 crore and an OFS of 1.46 crore equity shares by promoter K Sons Family Trust.

The company plans to utilise ₹130 crore from the fresh issue proceeds towards incremental working capital requirements. It will also invest around ₹66.7 crore to expand manufacturing capacity at its Gangol facility through the purchase of new machinery, automation and backward integration initiatives, construction of an office building, installation of solar power plants and procurement of electric vehicles for internal logistics.

According to the CARE Report cited in its draft papers, Kanohar Electricals is among India's leading transformer manufacturers by revenue in FY25. It is one of only five domestic companies certified for short-circuit testing of 500 MVA 400 kV transformers and one of only two Indian manufacturers qualified to produce 100 MVA 220 kV Scott transformers used in railway electrification projects.

Torrent Gas set to become third listed Torrent Group company

Torrent Gas, the city gas distribution arm of the Torrent Group, has also received regulatory clearance after confidentially filing its draft red herring prospectus with Sebi in March. Upon listing, Torrent Gas will become the third listed entity from the Torrent Group, joining Torrent Pharmaceuticals and Torrent Power.

The company develops and operates city gas distribution infrastructure across 34 districts in seven states and one Union Territory, supplying compressed natural gas (CNG) for automobiles and piped natural gas (PNG) to residential, commercial and industrial consumers. It is also integrating compressed biogas into its operations to support cleaner energy adoption.

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