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Premier Energies, Sanathan Textiles file DRHP; try to raise around ₹2,300 cr

After a slow start at the start of the new financial year, there has been a surge in IPO activity in the primary market with two more companies filing their Draft Red Herring Prospectus (DRHPs) with capital market regulator SEBI to raise around ₹ 2,300 crore publicly to get. listing of their shares on domestic stock exchanges. The primary market is seeing a temporary lull in IPOs of new shares as companies take a wait-and-see approach ahead of the ongoing Lok Sabha elections, which end on June 1, while the results will be announced on June 4. In FY24, 76 motherboard IPOs made their stock market debut in FY24, raising revenues of ₹61,915 crore, up 19% from the ₹52,116 crore mobilized by 37 companies in FY23.

In a new development in the primary market, solar panel maker Premier Energies has filed DRHP with SEBI to raise another ₹1,500 crore through an initial public offering (IPO), while yarn maker Sanathan Textiles aims to raise ₹800 crore publicly to fetch. listing of its shares.

According to the DRHP, the issuance of Hyderabad-based Premier Energies consists of a fresh issue of shares aggregating up to ₹1,500 crore and an offer for sale of up to 2,82,00,000 shares by the selling shareholders. Under the offer for sale, South Asia Growth Fund II Holdings LLC will sell 2,38,46,400 shares and South Asia EBT Trust will divest 1,53,600 shares and promoter Chiranjeev Singh Saluja will sell 42,00,000 shares.

According to the IPO document, the company may consider a pre-IPO placement of specific securities for up to ₹300 crore. If the pre-IPO fundraising is undertaken, the new issue will be reduced to the level of such pre-IPO placement.