India Exposition Mart Ltd, a leading integrated exhibition and convention venue, has received permission from capital markets regulator Sebi to raise Rs 600 crore through an initial public offering (IPO). The initial sale of shares comprises a new issue of shares with a total value of up to Rs 450 crore and an offer to sell (OFS) of up to 1.12.10.659 shares by existing shareholders pursuant to the Draft Red Herring Prospectus (DRHP).
OFS providers include Vectra Investments, MIL Vehicles & Technologies, Overseas Carpets, RS Computech, Navratan Samdaria, Dinesh Kumar Aggarwal and Pankaj Garg.
According to market sources, the company is expected to raise around Rs 600 crore through the initial share sale.
The company, which filed the preliminary IPO papers with Sebi in March, received its “observation letter” on June 16, an update from the market regulator showed on Monday.
In Sebi’s language, its observations imply that it should go public.
According to the draft papers, the company could consider a private placement of shares with a total value of up to Rs 75 crore. If such a pre-market placement is made, the volume of new issues will be reduced.
Of the Rs.450 crore new issuance, the company plans to use approximately Rs.316.91 crore for expansion of its existing infrastructure assets, Rs.17 crore for debt service and general corporate purposes.
Located in Greater Noida, India Exposition Mart is one of the premier event planners and suppliers in the country, providing technology-driven, world-class facilities and security standards for global business-to-business exhibitions, conferences, conventions, product launches and promotional events, among others.
India Exposition Mart had revenues of Rs. 13.30 crore for FY21 and for the six months ended 30 September 2021 revenues of Rs include maintenance services.
Emkay Global Financial Services is the sole book-running lead manager and Kfin Technologies is the registrar for the offering.
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