SEBI Approves IPOs for Hexaware, PMEA Solar & More

The Securities and Exchange Board of India (SEBI) has approved six initial public offering (IPO) applications, highlighting the growing interest in public listings across various industries. The approved IPOs belong to Hexaware Technologies, PMEA Solar Tech Solutions, Scoda Tubes, Ajax Engineering, All Time Plastics, and Vikran Engineering. 

These companies, which had submitted their draft red herring prospectuses (DRHPs) between September and December, received SEBI’s observation letters between January 14 and 17, signaling the regulatory clearance to proceed with their public issues.

Hexaware Technologies, a global IT and artificial intelligence-driven services provider, aims to raise ₹9,950 crore through an IPO that will be entirely an offer for sale (OFS) by its promoter, CA Magnum Holdings, an affiliate of the Carlyle Group. The company was previously delisted from Indian stock exchanges in 2020. Similarly, PMEA Solar Tech Solutions, a Mumbai-based manufacturer specializing in solar tracking and mounting products, has proposed an IPO comprising a fresh equity issue of ₹600 crore and an offer for sale of up to 11.23 million shares, with a face value of ₹10 per share.

Scoda Tubes, a Gujarat-based producer of stainless-steel tubes and pipes catering to sectors such as oil and gas, pharmaceuticals, and railways, plans to raise ₹275 crore entirely through a fresh issue of shares. Meanwhile, Ajax Engineering, a leading manufacturer of concrete equipment backed by Kedaara Capital, is offering an IPO consisting solely of a 2.28 crore share OFS by its promoters and investors.

The approvals come at a time when the IPO market in 2024 is witnessing unprecedented activity, with total fundraising surpassing ₹1.6 lakh crore, setting a record. This surge is fueled by significant offerings such as Hyundai Motor India’s ₹27,870 crore IPO, the largest in Indian history. Investor enthusiasm has also led to an increase in the average IPO size, which has more than doubled from ₹867 crore in 2023 to over ₹1,700 crore in 2024.

Despite the overall positive momentum, SEBI has returned the IPO documents of Anand Rathi Share and Stock Brokers, which had sought to raise ₹745 crore through a fresh equity issue. The company intended to use the proceeds for long-term working capital and general corporate purposes. However, SEBI returned the proposal on January 17 without providing a specific reason.

With strong investor sentiment and rising IPO sizes, the Indian stock market continues to experience robust participation, reflecting confidence in the country’s economic and financial landscape.