SEBI Approves IPOs for Silver Consumers Electricals, Steel Infra; AceVector (Snapdeal Parent) Gets DRHP Observations

The Securities and Exchange Board of India (SEBI) has approved the Initial Public Offerings (IPOs) for two companies, Silver Consumers Electricals and Steel Infra Solutions Company, enabling them to raise funds from the public. In parallel, SEBI has also issued its observations on the Draft Red Herring Prospectus (DRHP) filed by AceVector, the parent entity behind the popular e-commerce marketplace Snapdeal. This signifies that AceVector can now proceed with its IPO plans.

SEBI issued its observations for AceVector and Steel Infra Solutions Company on November 11, and for Silver Consumers Electricals on November 12. The issuance of these observations means that these companies can now launch their respective IPOs within a 12-month period. Companies filing their DRHP through a confidential route have an extended 18-month window. Following this approval, they must file an updated DRHP with SEBI, and then a Red Herring Prospectus with the Registrar of Companies to officially commence their IPO launch.

Silver Consumers Electricals, a manufacturer of electrical consumer durables based in Rajkot, aims to raise approximately ₹1,400 crore through its IPO. This includes ₹1,000 crore from the issuance of fresh shares and ₹400 crore from promoters selling their stake via an Offer-for-Sale (OFS). Steel Infra Solutions Company, headquartered in New Delhi and backed by entities like MK Ventures, plans to raise ₹96 crore through new share issuance, with promoters and investors divesting 1.42 crore shares via OFS. AceVector, co-founded by Kunal Bahl and Rohit Bansal, had confidentially filed its DRHP in July this year.

Impact

This news is significantly positive for India's primary market, indicating continued investor appetite for new listings. The successful completion of these IPOs will infuse capital into these companies, potentially leading to expansion and job creation. It also provides new investment opportunities for retail and institutional investors. The overall sentiment for upcoming IPOs is likely to receive a boost.

Rating: 7/10

Difficult terms

• IPO (Initial Public Offering): This is the process where a private company offers its shares to the public for the first time, becoming a publicly traded company.
• SEBI (Securities and Exchange Board of India): The primary regulatory body responsible for overseeing and regulating the securities market in India.
• DRHP (Draft Red Herring Prospectus): A preliminary document filed with SEBI by a company planning an IPO, containing details about the company, its finances, proposed use of funds, and risk factors.
• RHP (Red Herring Prospectus): The final prospectus filed with the Registrar of Companies, containing all necessary details for an IPO, used for public subscription after SEBI's approval.
• Offer-for-Sale (OFS): A mechanism where existing shareholders (like promoters or early investors) sell a portion of their shares to new investors during an IPO or follow-on offering.
• Fresh Issue: When a company issues new shares to raise capital directly for its business operations, expansion, or debt repayment.