SEBI Clears IPOs for Varindera Constructions and Two Others to Raise Over ₹2,100 Crore

SEBI has approved the initial public offerings (IPOs) of Ellenbarrie Industrial Gases, Varindera Constructions, and Sambhv Steel Tubes, collectively aiming to raise over ₹2,100 crore.

Approval Details

According to SEBI's processing status of draft offer documents published on January 29, observation letters were issued for Sambhv Steel Tubes on January 21, Ellenbarrie Industrial Gases on January 22, and Varindera Constructions on January 23. In SEBI terminology, an observation letter indicates approval for the company to proceed with its IPO within a year.

Ellenbarrie Industrial Gases

Kolkata-based Ellenbarrie Industrial Gases filed for an IPO on September 18, 2024, comprising a fresh issue of ₹400 crore and an offer for sale (OFS) of 1.44 crore shares by existing shareholders. Promoters Padam Kumar Agarwala and Varun Agarwal will be offloading shares. The company, a leading industrial gas manufacturer in eastern and southern India, intends to use the fresh issue proceeds for debt repayment and establishing a new air separation unit at its Uluberia-II plant. Additionally, it is considering a pre-IPO placement of ₹80 crore, which could reduce the fresh issue size.

Varindera Constructions

Varindera Constructions, which submitted its draft papers on September 30, 2024, plans to raise ₹1,200 crore, comprising a ₹900 crore fresh issue and a ₹300 crore OFS by promoters. Established in 1987 by Varinder Garg, the company specializes in infrastructure projects such as metro depots, roads, and aircraft hangars. The funds from the fresh issue will be allocated for equipment purchases, working capital, and debt repayment. The company may also raise ₹180 crore through a pre-IPO placement.

Sambhv Steel Tubes

Sambhv Steel Tubes, a manufacturer of electric resistance welded steel pipes and structural tubes, filed its draft red herring prospectus (DRHP) on September 30, 2024, seeking to raise ₹540 crore. This includes ₹440 crore from a fresh issue and ₹100 crore from an OFS by promoters. The net proceeds from the fresh issue, estimated at ₹390 crore, will primarily be used for debt repayment and general corporate purposes.

With SEBI’s approval, all three companies are now positioned to launch their IPOs within the next 12 months.