NSDL, 3 other IPOs get approval from SEBI

In a fresh development in the primary market, four companies have received observation letters from the capital market regulator SEBI to launch their initial public offerings (IPOs). The list includes National Securities Depository (NSDL), Zinka Logistics (Blackbuck), Standard Glass Lining, and Suraksha Diagnostic.

While NSDL, India's largest and first depository services company, filed its IPO paper in July 2023, Flipkart-backed Zinka Logistics Solutions submitted its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in July this year. Telangana-based Standard Glass Lining Technology and Kolkata-headquartered Suraksha Diagnostic also filed their IPO documents in July this year.

Here’s all you need to know about these IPOs:

NSDL

NSDL, a market infrastructure institution, on July 7, 2023, filed its document with the SEBI for its IPO, which is completely an offer for sale (OFS) from key investors, including National Stock Exchange (NSE), HDFC Bank, SBI, IDBI Bank, and SUUTI. The company plans to issue up to 57,260,001 equity shares of face value ₹2 each.

“The offer for sale of equity shares comprises up to 22,220,000 stocks by IDBI Bank; up to 18,000,001 equity shares by NSE; up to 5,625,000 by Union Bank of India; up to 4,000,000 by State Bank of India; up to 4,000,000 by HDFC Bank; up to 3,415,000 by administrator of the specified undertaking of the Unit Trust of India (SUUTI),” as per document filed with the SEBI.

IDBI Bank and NSE are among the largest shareholders in NSDL, owning 26%, and 24% stakes in the company, respectively. HDFC Bank (8.95%), State Bank of India (5%), Union Bank of India (2.8%) and Canara Bank (2.3%) are other key stakeholders.

Zinka Logistics

The IPO of Accel and Flipkart-backed Zinka Logistics Solutions, the parent company of logistics unicorn BlackBuck, is a mix of fresh issuance of ₹550 crore and an offer for sale (OFS) of up to 2.16 crore equity shares by promoters and existing shareholders.

Under the OFS, three co-founders Rajesh Yabaji, Chanakya Hridaya and Rama Subramaniam together will sell 44.37 lakh shares, while Accel India will offload a total of 52.32 lakh shares. Flipkart subsidiary Quickroutes International will sell 39.73 lakh shares, while Tiger Global will offload 8.83 lakh shares. Among others, International Finance Corporation (IFC) will be selling 17.11 lakh shares, Sands Capital (13.24 lakh shares), and GSAM Holdings (9.27 lakh shares).

As per the DRHP filed with SEBI, the Bengaluru-based company, operating under the name of BlackBuck, may consider a pre-IPO placement of up to 20% of the size of the fresh issue. If such placement is completed, the fresh issue size will be reduced. 

Out of ₹550 crore raised from issuance of equity shares, up to ₹200 crore will be utilised for funding sales and marketing costs; ₹140 crore for investment in Blackbuck Finserve Private Limited for financing the augmentation of its capital base to meet its future capital requirements. Besides, ₹75 crore will be used for product development and meet general corporate purposes.

Standard Glass Lining

The IPO of Telangana-based Standard Glass Lining Technology, engineering equipment manufacturer for pharmaceutical and chemical sectors in India, is a combination of fresh issuance of ₹250 crore and an offer for sale of up to 18.44 million equity shares by promoters and other selling shareholders.

The proceeds from its fresh issuance to the extent of ₹10 crore will be utilised for funding of capital expenditure requirements for purchase of machinery and equipment; ₹130 crore for repayment of certain outstanding borrowings availed by the company and investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited. Around ₹30 crore will used for Investment in its wholly owned Material Subsidiary, S2 Engineering Industry Private Limited, for funding its capital expenditure requirements towards purchase of machinery and equipment; ₹20 crore for funding inorganic growth through strategic investments and general corporate purpose.

Suraksha Diagnostic

Backed by global investment firm OrbiMed, the company, which had filed preliminary IPO papers in July, obtained the regulator's observation on September 30. The IPO is completely an OFS of up to 1.92 crore equity shares by promoters and investor shareholders, and there is no fresh issue component.

Under the OFS, promoters Somnath Chatterjee, Ritu Mittal, and Satish Kumar Verma will offload shares. Among investors, OrbiMed Asia II Mauritius Ltd, Munna Lal Kejriwal and Santosh Kumar Kejriwal will pare their stakes via OFS route.

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