SEBI Approves Balaji Solutions to float IPO

SEBI Approves Balaji Solutions to float IPO

The Securities Exchange Board of India (in short SEBI) approved IT hardware and mobile accessories firm Balaji Solutions and Enviro Infra Engineers which provides solutions for waste water treatment, to raise funds through an Initial Public Offering (in short IPO).

SEBI in its final observation letter which implies the approval for the IPO gave its approval to Balaji Solutions which is one of the leading IT hardware and peripherals and mobile accessory company engaged in the business of manufacturing, branding and distribution of IT hardware products under the flagship brand Foxin.

The two companies had filed its preliminary IPO papers with SEBI dating back to August and September, 2020.

In SEBI's parlance, receiving an observation letter from the regulator implied green sign to float the initial share-sale. According to the draft red herring prospectus (for short DRHP), Balaji Solutions' public issue consists of a fresh issue of equity shares worth up to Rs 120 crore and an offer-for-sale (for short OFS) of up to 75 lakh equity shares by a promoter and a promoter-group entity. Under the OFS, Rajendra Seksaria, and Rajendra Seksaria HUF will offload shares.

The public offer also consists of a reservation scheme for subscription by eligible employees.

The company may contemplate a pre- IPO placement offer amounting to Rs 24 crore. If such placement is finalized, a reduction will be reflected in the fresh issue size. Proceeds from its fresh issuance worth Rs 86.60 crore will be used for funding incremental working capital requirements of the company, and general corporate purposes.

The IPO of Enviro Infra Engineers consists of sale of 95 lakh equity shares with no OFS component, as stated in the draft papers. Funds raised through the issue will be used to meet the working capital requirements and general corporate purpose.