Cello World, ASK Automotive, ESAF Small Finance Bank, get Sebi nod for IPO launch

The Securities and Exchange Board of India (SEBI) has granted approval for three companies, ASK Automotive, ESAF Small Finance Bank, and Cello World, to proceed with their initial public offerings (IPOs). SEBI issued observation letters for the draft red herring prospectuses (DRHP) submitted by these companies on October 9, indicating that the IPO documents have been approved, and the companies can now move forward with their IPOs.

ASK Automotive:

ASK Automotive, a manufacturer of brake shoes and advanced braking systems, filed its draft papers on June 12, 2023. The company plans to launch an IPO consisting of 2.95 crore equity shares, entirely through an offer-for-sale (OFS). Promoters Kuldip Singh Rathee and Vijay Rathee will be the selling shareholders, with the entire issue proceeds going to them. ASK Automotive is the largest brake shoe and advanced braking systems manufacturer for two-wheelers in India, boasting a market share of approximately 50% in FY22. It supplies products to top two-wheeler OEMs, including Hero MotoCorp, Honda Motorcycle and Scooter India, Bajaj Auto, TVS Motor, and Suzuki Motorcycle India. JM Financial, Axis Capital, ICICI Securities, and IIFL Securities are the book-running lead managers for the issue.

ESAF Small Finance Bank:

ESAF Small Finance Bank, which refiled IPO papers in July, intends to raise Rs 629.04 crore through its IPO. The IPO comprises a fresh issuance of shares worth Rs 486.74 crore by the company and an OFS of Rs 142.3 crore by selling shareholders. Promoters hold 74.43% of shares in ESAF, and public shareholders hold the remaining 25.57%. The net fresh issue proceeds will be used to strengthen the Tier-I capital base for future capital requirements. Selling shareholders in the OFS include ESAF Financial Holdings, PNB MetLife India Insurance Company, and Bajaj Allianz Life Insurance Company. ICICI Securities, DAM Capital Advisors, and Nuvama Wealth Management are the merchant bankers handling the issue.

Cello World:

Mumbai-based consumer products company Cello World filed its draft papers in August 2023 to raise Rs 1,750 crore through an IPO. The public issue consists solely of an offer-for-sale by selling shareholders, including promoters Pradeep Ghisulal Rathod, Pankaj Ghisulal Rathod, and Gaurav Pradeep Rathod. The company will not receive any funds from the public issue, with all proceeds, except IPO expenses, going to the promoters. Cello World claims to be a leading entity in the consumerware market in India, with a presence in consumer houseware, writing instruments and stationery, and molded furniture and allied products categories. The company is currently establishing a glassware manufacturing facility in Rajasthan. It is 100% owned by the Rathod family. The merchant bankers appointed for the issue are Kotak Mahindra Capital Company, ICICI Securities, IIFL Securities, JM Financial, and Motilal Oswal Investment Advisors.