Seven Companies, Including Meesho and Shiprocket, Get SEBI Nod for Rs 7,700 Crore IPOs

Seven companies have secured approval from the Securities and Exchange Board of India (SEBI) to launch their Initial Public Offerings (IPOs), collectively aiming to raise around Rs 7,700 crore. Key among these are Softbank-backed e-commerce firm Meesho and Temasek-backed e-commerce enablement platform Shiprocket. Other companies that received regulatory clearance include German Green Steel and Power, Allied Engineering Works, Skyways Air Services, Rajputana Stainless, and Manika Plastech. SEBI's observation essentially grants these firms the green light to proceed with their public fundraising efforts.

This wave of IPO approvals comes amidst a booming primary market in India, with many companies already tapping the mainboard market this year. Meesho's proposed IPO includes a fresh issue of equity shares worth up to Rs 4,250 crore and an offer for sale (OFS) by existing shareholders, with proceeds intended for cloud infrastructure, AI/ML development, marketing, acquisitions, and general corporate purposes. Shiprocket is reportedly looking to raise between Rs 2,000-2,500 crore. The other companies also plan to use the funds for expansion, debt repayment, working capital, and capital expenditure. Notably, Bombay Coated and Special Steels withdrew its IPO documents, and Vishal Nirmiti's papers were returned by SEBI.

Impact This news indicates a strong appetite for public offerings and investor confidence in the Indian market. The successful listing of these companies can bring substantial liquidity and offer diverse investment opportunities, potentially boosting market sentiment. Rating: 7/10

Difficult Terms: IPO (Initial Public Offering): The process by which a private company first sells shares of stock to the public. SEBI (Securities and Exchange Board of India): The regulatory body responsible for overseeing the securities market in India. OFS (Offer for Sale): A type of share sale where existing promoters or shareholders sell their shares to new investors, rather than the company issuing new shares. DRHP (Draft Red Herring Prospectus): A preliminary document filed with SEBI by companies planning an IPO, containing details about the company, its finances, and the proposed offering. Primary Market: The market where securities are created and sold for the first time, typically through an IPO. Mainboard Market: The primary listing segment of a stock exchange, usually for larger and more established companies. Confidential Pre-filing Route: A regulatory pathway allowing companies to keep IPO details private during initial filing stages until later in the process.