Cochin Shipyard,Prataap Snacks,Tejas get Sebi go-ahead for IPO

As many as three firms -- Cochin Shipyard, Prataap Snacks and Tejas Networks -- have received markets regulator Sebi's approval to raise an estimated over Rs 2,300 crore through initial public offerings.
The three companies had filed their draft red herring prospectus (DRHP) with Sebi between September and March and received 'observations' from the regulator during April 13-21, which is very necessary for any company to launch public offer, as per the latest update.
Equity shares of these companies are proposed to be listed on BSE and NSE.
According to draft paper, Cochin Shipyard's initial public offer (IPO) comprises fresh issuance of 22,656,000 equity shares and an offer for sale of 11,328,000 equity scrips by the government.

According to sources, the company is expected to garner Rs 1,400-1,500 crore.
It is the largest public sector shipyard in India in terms of dock capacity and caters to the defence sector as well as commercial sector worldwide.

Proceeds from the fresh issue will be utilised towards setting up of a new dry dock within the existing premises of the company, setting up of an international ship repair facility at Cochin Port Trust area and for other general corporate purposes.
Prataap Snacks, which sells products under Yellow Diamond brand, plans to raise up to Rs 250 crore through the fresh equity issuance.

Besides, up to 29.82 lakh shares would be on offer through OFS and that would include sale of around 1.74 lakh shares by SCI Growth Investments II, Sequoia Capital GFIV Mauritius and by some promoter group entities.
According to sources, the total IPO size is likely to be more than Rs 400 crore.
Proceeds from the public offering would be mainly used for funding capital expenditure requirements, repayment of borrowings, modernisation of existing manufacturing facilities, marketing and brand building activities.
Tejas Networks, maker of optical networking products, public offer comprises fresh issue of shares worth Rs 450 crore and an offer for sale of 1.27 crore scrips by shareholders.

Also, the company plans to raise about Rs 150 crore by selling 60 lakh shares ahead of the IPO. If the pre-IPO placement is completed, the company would reduce the IPO size.