IPO-News: Green signal from Sebi – Cyient DLM, Healthvista India, Zaggle Prepaid start IPOs soon

The companies received Sebi’s “watch” from March 29-31, the regulator said in an update on Wednesday. “Observation” means Sebi’s approval of the launch of the IPO.

Updated on 04/05/2023 | 4:11 p.m. IST

Market regulator Sebi has given the green light to Cyient DLM, Healthvista India and Zaggle Prepaid Ocean Services to launch their initial public offering (IPO). These three companies had submitted their IPO papers to the regulator between July 2022 and January 2023.

The companies received Sebi’s “watch” from March 29-31, the regulator said in an update on Wednesday. “Observation” means Sebi’s approval of the launch of the IPO.

According to the IPO drafts filed with Sebi, electronic manufacturing services company Cyient DLM will have a new issue of shares worth Rs 740 crore with no offer-for-sale (OFS) component. The Company would use the IPO funding for additional capital needs, investments, debt repayment, achieving inorganic growth through acquisitions, and general corporate purposes.

The Healthvista India IPO will involve a new issue of shares with a total value of up to Rs 200 crore and an OFS of up to 56,252,644 shares by selling shareholders, pursuant to the Draft Red Herring Prospectus (DRHP). The Company is an out-of-hospital healthcare provider branded as Portea.

Under the OFS, Accel Growth III Holdings (Mauritius) Ltd; Accel India III (Mauritius) Ltd, Ventureast Life Fund III LLC, MEMG CDC Ventures; Qualcomm Asia Pacific Pte Ltd, Accel India V (Mauritius) and Saber Partners Trust will sell shares. According to market sources, the IPO is expected to raise around Rs 1,000 crore, PTI reported.

Funds raised through the IPO will be used to fund the working capital needs of its subsidiary Medybiz Pharma, service debt, purchase medical equipment, marketing and branding activities.

The IPO of fintech firm Zaggle Prepaid Ocean Services includes Rs.4.90 crore new share issuance and an OFS component of 1.05 crore shares by promoters, investors and other shareholders, according to the draft papers.

Promoters Raj P Narayanam and Avinash Ramesh Godkhindi and investors VenturEast Proactive Fund LLC, GKFF Ventures, VenturEast SEDCO Proactive Fund LLC and Ventureast Trustee Company are offering shares in OFS.

Proceeds from the reissuance will likely be used for customer acquisition and retention, technology and product development, debt settlement, and general corporate purposes.