SEBI returns IPO papers of Diffusion Engineers

Market regulator SEBI has declined approval and returned the Draft Red Herring Prospectus filed by Diffusion Engineers for launching an initial public offering. The company, which provides engineering solutions, had submitted preliminary papers with SEBI in January. The IPO involves a fresh issue of up to 98.47 lakh equity shares.

The Nagpur-headquartered company wanted to allocate the fund raised for expansion of the current manufacturing facility and to set up a new facility in Maharashtra.

The company specialises in delivering engineering solutions to clients in both domestic and international markets. The lead manager of the issue was Unistone Capital.

• Also read: Firms raising funds via IPOs under SEBI scrutiny

Withdraws papers

Rays Power Infra, which file papers for IPO in January, has withdrawn its DRHP without mentioning any reason for the decision. Mumbai-based Rays Power wanted to raise ₹300 crore through fresh equity issuance besides an offer forsale of 2.99 million shares by the existing promoters and shareholders.

The company is an integrated solar power company and has implemented solar power projects of 1,207 mega-watts peak capacity. The company will execute projects across 13 States including Maharashtra, Karnataka and Arunachal Pradesh. It has also undertaken projects in Bangladesh and Vietnam. The company was planning to utilise ₹210 crore from IPO proceeds for working capital and the remaining for general corporate purpose. Anand Rathi Advisors was lead manager of the issue.

As of last October, the company’s order book was at ₹1,842 crore. Of this ₹292 crore was from turnkey Solar Services, ₹476 crore from Solar EPC Business, ₹455 crore from Solar Parks Business and ₹619 crore from other business segments.

Solar projects

The company recently bagged three solar projects of 520 MWp capacity from two big central public sector firms and one from a global developer. These orders marked the company’s entry into the Gujarat and Assam markets.

Meanwhile, SEBI cleared the rights issue of Jyoti Structures and Bharati Hexacomm last week.

Early this month, Madhabi Puri Buch, Chairperson, SEBI said the heightened activity in the grey market pre-IPO is a “very valid concern” and a complicated problem to be solved. “Pre-IPO activity in the grey market is a very valid concern. Under the law ‘to be listed’ means a company should have formally started a process to get itself listed. It is a delicate space which we will not go into without floating a consultation paper,” she said.

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