Auto component manufacturer Dhoot Transmission has filed an updated draft red herring prospectus (UDRHP) with capital market regulator Securities and Exchange Board of India (SEBI) to raise funds via an initial public offering. Meanwhile, Deepa Jewellers and Cotec Healthcare have received SEBI's observations on May 18, which is equivalent to securing approval to float public offerings. According to reports from The Economic Times, receiving observations from SEBI is the final regulatory hurdle before companies can proceed with their IPO plans.
The proposed IPO of Dhoot Transmission comprises a fresh issue of shares valued at ₹1,400 crore and an offer for sale (OFS) of 1.63 crore shares by promoter selling shareholders. As reported by The Economic Times, the funds raised will be utilized for repaying debt of the company and its subsidiaries, setting up new wiring harness manufacturing facilities, and funding inorganic growth through acquisitions and general corporate purposes. The company, founded in 1999, designs, manufactures and supplies critical wiring harnesses that integrate electronic sensors and controllers, terminals, connectors, junction boxes, switches, high-voltage interconnection systems and data cables. Bain Capital-backed Dhoot Transmission is a top player in two/three-wheeler and electric wiring harnesses with over 70% EV share. The company will use funds to repay debt and establish new manufacturing facilities in Haryana and Tamil Nadu.
The initial share sale of Deepa Jewellers is structured as a mix of a fresh issue of shares aggregating to ₹250 crore and an OFS of 1,18,48,340 shares by promoters Ashish Agarwal and Seema Agarwal. According to reports from The Economic Times, the funds raised will be used for long-term working capital requirements and general corporate purposes. The company operates as an organised B2B designer, processor and supplier of hallmarked gold jewellery, with primary operations in Karnataka, Andhra Pradesh, Telangana, Tamil Nadu and Kerala. Deepa Jewellers, a B2B hallmarked gold jewellery processor based in Hyderabad, is seeking to raise ₹250 crore through its IPO.
Cotec Healthcare's IPO consists of a fresh issue of shares totalling ₹295 crore and an OFS component of 60 lakh shares. As reported by The Economic Times, the funds raised will be used for establishing a new project aimed at enhancing existing manufacturing capacities and facilitating the manufacture of new products, with a portion allocated for corporate general purposes. The company is positioned as a key player in the contract development and manufacturing organisation (CDMO) industry in India.
The IPO developments come amid sharp downswings and muted recoveries in markets, with oil prices remaining elevated amid the seesaw political game in the Middle East. Sebi is proposing changes to the price discovery process for IPOs and re-listed shares due to concerns about artificially suppressed prices. The regulator plans to alter the pre-open call auction, introducing a new base price methodology and a more dynamic price band mechanism to prevent persistent buying pressure and upper circuit hits seen in re-listed securities. Meanwhile, Nykaa share price surged to a 52-week high following strong March quarter results, with net profit jumping 286% to ₹78 crore and revenue up 28% year-on-year.
