JK Files & Engineering and Elin Electronics, promoted by Raymond, have received the green light from financial markets regulator Sebi to raise funds through their initial public offerings (IPOs). JK Files & Engineering and Elin Electronics are looking to raise Rs 800 crore and Rs 760 crore respectively, through the initial sale of shares.
The companies, which filed their preliminary IPO documents with Sebi between November and December 2021, obtained the regulator’s observation letter on February 23, the latest update with Sebi revealed on Monday. In Sebi parlance, his observation implies a green signal to launch an IPO.
According to the draft documents, the public offering of JK Files & Engineering is entirely an offer for sale (OFS) of Rs 800 crore shares by promoter Raymond Ltd. stake in society.
JK Files & Engineering is engaged in the manufacture of precision engineering components for tools and hardware (files and drills) and the marketing of hand tools, power tool accessories and power machine tools and the manufacture of automotive components and engineering products – ring gears, flexible plates and water pump bearings.
According to the draft documents, the public offering of Elin Electronics consists of a new share issue totaling up to Rs 175 crore and a sell offer of up to Rs 585 crore by the promoters.
Under the SFO, existing shareholders will sell shares worth Rs 345.60 crore and promoters will sell shares worth Rs 239.4 crore. Proceeds from the new issue will be used to the extent of Rs 80 crore to repay/prepay debt, Rs 48.97 crore to finance capital expenditure for upgrading and expansion of existing factories in Ghaziabad, Uttar Pradesh and Verna, Goa in addition to general business needs.
Delhi-based Elin is a leading Electronic Manufacturing Service (EMS) manufacturer of end-to-end product solutions for major brands of lighting, fans and small kitchen appliances in India, and the leading manufacturers of fractional horsepower motors in India.
First post: STI