SEBI gives nod for Sterlite Power, ESDS Software IPOs

Our Bureau | | Updated on: Dec 06, 2021
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Sterlite Power to raise around ₹1,250 crore and ESDS Software to come up with ₹322 crore issue.

The initial public offerings from Sterlite Power Transmission Limited and ESDS Software Solution Limited have received Securities and Exchange Board of India (SEBI) approval in the past week.

SEBI had issued observations for the two IPOs between December 2-3, 2021. The issuance of observations implies SEBI's go-ahead to float IPO.

SEBI is yet to issue observations for 33 IPOs.

Sterile Power Transmission IPO

The Anil Agarwal-led Sterlite Power had filed draft documents with SEBI in August to raise around ₹1,250 crore.

The IPO comprises a fresh issue of equity shares of the face value of ₹2 each, aggregating up to ₹1,250 crore.

The company will leverage the proceeds from the issue for the repayment of the debt of the firm and its arm Khargone Transmission Ltd (KTL) and for general corporate purposes, according to the firm's DRHP document.

Sterile Power is one of the leading private sector power transmission infrastructure developers and solutions providers. It operates in India and Brazil. The company develops integrated power transmission infrastructure and provides solution services through two business units: Global Infrastructure and Solutions.

ESDS Software Solution IPO

Nashik-based cloud services and data centre firm ESDS Software Solution had filed its draft papers with SEBI in September.

The IPO comprises a fresh issue of up to ₹322 crore and an offer for sale for up to 21,525,000equity shares. The OFS includes issues of up to 4,231,000 shares by ESDS Partners LLC, up to 16,860,000 shares by South Asia Growth Fund II LP. Up to shares will be sold by South Asia EBI Trust (acting through its trustee Orbis Trusteeship Private Ltd), while Sarla Prakash Somani will be sharing up to 4 lakh shares.

Currently, ESDS Partners LLC holds a 4.21 per cent stake in the company while South Asia Growth Fund II LP owns a 3.67 per cent stake.

The firm’s offerings can be classified into cloud services, data centre services and product R&D, and serves customers across BFSI, healthcare, education, etc.

The company will leverage the funds raised from the issue to purchase cloud computing equipment for its data centres, fund its long-term working capital requirements, and for pay/pre-payment, in full or in part, of certain term loans availed by the company.

Published on December 06, 2021

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