SEBI Nod for Arkade Developers, CJ Darcl Logistics, Juniper Hotels, Indo Farm IPOs

India's capital markets regulator SEBI has granted approval for the initial public offerings (IPOs) of four companies Arkade Developers, CJ Darcl Logistics, Juniper Hotels and Indo Farm Equipment. Indo Farm Equipment got an observation letter from SEBI about their IPO plans on 24 January CJ Darcl Logistics on 31 January and Arkade Developers and Juniper Hotels got theirs on 29 January.

This green signal allows these companies to raise funds through public offerings. Let's take a closer look at what each of these companies plans to do with the funds and how they're gearing up for their big market debut.

1. Arkade Developers IPO

Mumbai based real estate developer, Arkade Developers aims to raise ₹430 crore through a fresh issue. The company filed draft papers with SEBI on 31 August with the possibility of a pre IPO placement of up to ₹20 crore. Net proceeds of ₹270 crore will be dedicated to ongoing and upcoming projects while the rest will be used for land acquisition and general corporate purposes. Unistone Capital is the sole book-running lead manager.

2. Juniper Hotels IPO

Juniper Hotels, a luxury hotel chain based in Mumbai plans to mobilize ₹1,800 crore through its IPO and filed draft papers in September 2023. The offering consists solely of a fresh issue but before officially announcing their plans with a detailed document they might also consider placing some shares privately (pre-IPO placement) worth up to ₹350 crore. Company intends to use ₹1,500 crore of the net fresh issue to repay outstanding borrowings.

As of March 2023, Juniper Hotels and its subsidiary MHPL owe around ₹2,045.6 crore and another subsidiary CHPL has debts totaling ₹201.8 crore. To make this IPO happen they've got some financial experts on board JM Financial, CLSA India and ICICI Securities are the go-to people managing the financial side of things.

3. CJ Darcl Logistics IPO

Gurugram based logistics company CJ Darcl Logistics filed its draft red herring prospectus on 27 September. The IPO includes a fresh issuance of shares worth ₹340 crore and an offer for sale (OFS) of 54.31 lakh equity shares. Promoters of this company Krishan Kumar Agarwal, Roshan Lal Agarwal, and Narender Kumar Agarwal along with family members are the selling shareholders in the OFS.

The company may consider a pre-IPO placement of ₹68 crore before officially filing of the RHP with the RoC. The fresh issue proceeds of ₹240 crore will be used for debt repayment and ₹10 crore for capital expenditure on electric vehicles. ICICI Securities, Mirae Asset and Axis Capital Capital Markets are the book running lead managers.

4. Indo Farm Equipment IPO

Chandigarh based Indo Farm Equipment a tractors and cranes manufacturer plans to issue 1.4 crore equity shares through its IPO. This includes a fresh issue of 1.05 crore equity shares and an offer-for-sale (OFS) of 35 lakh equity shares by promoter Ranbir Singh Khadwalia.

A pre IPO placement of up to 19 lakh equity shares is also being considered. The net fresh issue proceeds will be used to expand pick & carry cranes manufacturing capacity, repay debt, and invest in NBFC subsidiary Barota Finance. Aryaman Financial Services will act as a book running lead manager.

Final Words

SEBI has returned draft papers from Kronox Lab Sciences and Shree Tirupati Balajee Agro Trading, submitted on 23 January and 29 January respectively. As for Asirvad Micro Finance IPO, SEBI has temporarily postponed its observations. This means those companies may need to make adjustments before seeking approval and SEBI is taking extra time to review the Asirvad Micro Finance IPO.