Latest news with #IssueofCapitalandDisclosureRequirements
Mint
4 days ago
- Business
- Mint
A loophole lets retail investors bid for some small-business IPOs
Regulations barring retail investors from the high-risk initial public offerings of tiny businesses have failed to prevent the category from participating in at least a few such issues. The reason: a loophole in the rules. National Stock Exchange and BSE Ltd, in consultation with the Securities and Exchange Board of India (Sebi), amended rules to raise the minimum bid for the IPOs of small and medium enterprises (SMEs) to more than ₹2 lakh for offers filed with the exchange after 8 March. The change in Regulation 267 of the Issue of Capital and Disclosure Requirements (ICDR) effectively prevents retail or small individual investors from such issues, since they cannot invest more than ₹2 lakh. However, IPOs approved before the 8 March cut-off can still offer small investors a chance to bid below ₹2 lakh. That's because exchanges give companies a window of one year from the date of approval to launch their maiden offer. Also read: Sebi's co-investment plan wins fund favour; lawyers warn of tax, legal cracks Unless the bourses issue circulars offering clarity, retail investors may be unable to participate in fresh SME IPOs but may be able to bid in older offers, according to analysts. 'A handful of SME IPOs that filed their prospectus before March 2025 are yet to open for subscription. These IPOs still allow applications for around ₹1 lakh to ₹1.2 lakh amounts that are significantly more accessible for individual investors," said Rohit Jain, managing partner at law firm Singhania & Co. 'However, it's a narrow window, as most of these IPOs are expected to hit the market in the next few weeks." Small firms whose IPO prospectuses were filed before the cut-off include 3B Films Ltd, LGT Business Connextions Ltd, Mahendra Relators and Infrastructure Ltd, and Everstims Technologies Ltd. 3B Films' offer, which is open for subscription from 30 May to 3 June, has received 177 applications from the retail category and is planning to raise ₹33.75 crore from the offer. Its minimum bid quantity is 3,000 shares, which means a minimum investment of ₹1,50,000 as the offer price is ₹50. Nikita Papers and Blue Water Logistics' offers, which closed on 29 May, also received bids from retail investors. Also read: IndiGo's promoter Rakesh Gangwal to sell $803 mn stake Around 348 companies have announced their intention to raise money on the SME platform, according to Prime Database. However, exchanges reveal the names of the companies launching offers a couple of days before an issue opens. Sebi rules Sebi tweaked the rules as retail participation surged in SME IPOs even as the regulator found cases involving misuse of proceeds and misconduct. Small businesses raised ₹9,120 crore through IPOs in FY25 against ₹5,971 crore in FY24, ₹2,235 crore in FY23, and ₹965 crore in FY22, according to data shared by Prime Database. That mirrors the record ₹1.62 trillion mop-up from the main board IPOs in FY25. Sebi regulates the mainboard IPOs, while exchanges oversee the SME segment in consultation with the regulator. 'We are still seeing DRHPs getting filed, which have a quota for retail applications. However, it will depend on the exchange to either accept or reject the retail quota," said a senior executive at an investment management firm, speaking on the condition of anonymity. The exchanges are said to be working to address this gap, according to a person aware of the development, who spoke on the condition of anonymity. Queries emailed to the NSE and BSE on this loophole remained unanswered. Retail investors were excluded from the IPO of NR Vandana Tex Industries Ltd., with a minimum bid amount of ₹2.44 lakh. The cotton textile company filed its red-herring prospectus on 21 May. Unlike the other SME IPO bids, the company's offer, which closed for subscription on Friday, received bids from 33,597 individual investors who are not retail investors. '…the rules (barring retail investors applying in SME IPOs) only apply to companies filing their prospectus after March 2025," Mohit Mehra, vice president of primary markets and payments at Zerodha, said in a post on X (formerly Twitter). 'Since prospectuses remain valid for a year, companies going public now may still allow retail participation if they filed before March 2025." Also read: Asset manager Abakkus plans mutual fund foray to ride retail demand Sebi, ahead of amending the rules, had cited increased retail participation in SME IPOs for its decision. 'Considering that SME IPOs tend to have a higher element of risks and investors getting stuck if sentiments change post listing, in order to protect the interest of smaller retail investors, the limit was increased," the regulator had said in a consultation released on 19 November. 'In recent times, instances have been observed of diversion of issue proceeds to related parties and shell companies and inflation of revenue was shown by circular transactions," Sebi had said.
Mint
5 days ago
- Business
- Mint
THIS multibagger jewellery stock to be in focus on Friday; here's why
PC Jewellers share price: PC Jeweller's share price will be in focus during Friday's market session after the jeweller announced on Thursday, May 29, that it has allotted 30.84 lakh fully convertible warrants into equity shares. The small-cap stock has delivered massive 1,100 per cent multibagger returns to investors in the last five years. The stock has gained over 171 per cent in a year. PC Jeweller Ltd has announced the conversion of 30.84 lakh fully convertible warrants into equity shares, resulting in the allotment of 3,08,42,400 equity shares of face value Re 1 each to a promoter group entity. This move has increased the paid-up equity share capital from ₹ 654.45 crore to ₹ 657.54 crore. The warrant conversion is part of the company's larger preferential allotment of 48.08 crore warrants approved earlier for both promoter and non-promoter groups. The promoter group's stake increased from 39.80 per cent to 40.08 per cent, while the public shareholding marginally declined from 60.20 per cent to 59.92 per cent. 'The Board of Directors of the company vide a resolution passed by circulation on May 29, 2025 has allotted 3,08,42,400 equity shares of face value of Re 1 each, on conversion of 30,84,240 warrants, to 1 allottee belonging to 'Promoter Group', after adjusting the number of shares, paid-up value per share and premium per share post sub-division / split of face value of equity shares of the company from 1 equity share of ₹ 10 each to 10 equity shares of Re 1 each w.e.f. December 16, 2024, upon receipt of the balance amount aggregating to ₹ 13,00,00,716 at the rate of ₹ 42.15 per warrant (being 75 per cent of the issue price per warrant) pursuant to the exercise of their rights of conversion of warrants into equity shares in accordance with the provisions of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018,' said PC Jewellers.
Business Standard
22-05-2025
- Business
- Business Standard
Board of Equitas Small Finance Bank to consider raising further capital
On 30 May 2025 The Board of Equitas Small Finance Bank will meet on 30 May 2025 has the proposal for raising further capital and to create, offer, issue and allot such number of equity shares or any other eligible securities and / or other securities convertible into equity shares including warrants, or otherwise (collectively Securities) through public and/or private offerings in one or more tranches and /or by way of one or more Qualified Institutions Placement, and / or preferential allotment and / or through any other permissible mode, in accordance with the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended, and all other applicable laws, as may be considered appropriate, subject to statutory / regulatory and other approvals as may be required including the approval of the shareholders of the Bank.
Time of India
21-05-2025
- Business
- Time of India
Shiprocket files confidential pre-IPO papers
BENGALURU: Shiprocket has filed a pre-filed draft red herring prospectus ( pre-DRHP ) with market regulator Sebi , marking the logistics tech company's formal step toward a public listing . The filing was made under Regulation 59C (5) of Sebi's Issue of Capital and Disclosure Requirements (ICDR) Regulations, as per a public notice issued by the company in a financial daily on Wednesday. The proposed initial public offering is intended to be listed on the main boards of both the BSE and NSE . The pre-DRHP was filed under Chapter IIA of the ICDR Regulations, which allows for confidential submissions, giving the company flexibility to delay public disclosures around offer details and financials during the early review process. Shiprocket, incorporated as Bigfoot Retail Solutions and headquartered in Delhi NCR, has not disclosed the size or timeline of the proposed issue in the public advertisement. Backed by investors including Zomato and Temasek, Shiprocket provides end-to-end shipping and fulfilment solutions to direct-to-consumer (D2C) brands and independent merchants, a segment that currently generates 70-80% of its revenues. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Mint
15-05-2025
- Business
- Mint
Small-cap stock below ₹20 declares rights issue worth ₹350 crore. Share jumps 18% in five days
Small-cap stock below ₹ 20: Sepc Limited share price surged as much as 2 per cent in Thursday's trading session after the board approved rights issue worth ₹ 350 crore. At 12:05 pm, Sepc share price were trading at ₹ 15.49 apiece. The small-cap stock rallied over 18 per cent in four days. The small-cap share has also given multibagger returns by soaring over 102.77 per cent in five years. "We had informed you that the Board of Directors and the members of the Rights Issue Committee of the Company had approved the offer and issuance of partly paid-up Equity Shares of the Company, by way of a Rights Issue up to an aggregate amount of Rs. 35,000 Lakhs (the "Rights Issue"), in accordance with the Companies Act, 2013, as amended and the rules made thereunder, the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018," the company said in an exchange filing. The rights issue will open for subscription on June 9 and close on June 23. The company further informed that the rights issue price has been set at ₹ 10, with the payment divided into two parts: ₹ 5 to be paid at the time of application and the remaining ₹ 5 to be paid later during the First and Final Call. The company has set Friday, May 23, as the record date to determine shareholders eligibility for rights issue. 'Rights Entitlement Ratio: 11 (Eleven) Rights Equity Shares (partly paid up) for every 50 (fifty) fully paid-up Equity Share held by the eligible shareholders as on the record date,' the company added.
