NEW DELHI, Jan 16: Speciality chemicals manufacturer Galaxy Surfactants has received capital markets regulator Sebi’s go-ahead to raise an estimated Rs 1,000 crore through an initial public offer (IPO).
The company had filed its draft papers with Securities and Exchange Board of India (Sebi) in November last year and obtained ‘observations’ from the regulator on January 12, 2018, the latest update with markets watchdog showed.
Sebi’s observations are very important for any company to launch a public offer.
During Galaxy Surfactants’ initial share sale, as many as 307 shareholders will sell 63,31,674 shares of the company, according to the draft red herring prospectus (DRHP).
“The objects of the offer are to achieve the benefits of listing the equity shares on stock exchanges and the sale of equity shares by the selling shareholders.
“Further, our company expects that listing of the equity shares will enhance its visibility and brand image and provide liquidity to its existing shareholders,” the draft papers stated.
According to merchant banking sources, the IPO is expected to fetch Rs 1,000 crore.
ICICI Securities, Edelweiss Financial Services and JM Financial Institutional Securities will manage the company’s public issue. The firm’s equity shares are proposed to be listed on BSE and NSE.
This is the company’s second attempt to go public.
Earlier in 2011, Galaxy Surfactants had entered the capital markets to raise over Rs 200 crore through its initial share sale. However, it withdrew from the IPO market due to tepid response from investors. (PTI)
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