State-owned Bharat Dynamics and Indian Renewable Energy Development Agency (IREDA) have received the financial markets regulator's approval for their initial public offering (IPO).
Bharat Dynamics and IREDA received 'observations' from the Securities and Exchange Board of India (SEBI) on February 15 and February 16, respectively.
Any company which wants to go public or make a rights issue must file a draft offer document with SEBI for its observations. The validity period of SEBI's observation letter is three months, meaning that the company has to open its issue within that period.
Defense equipment maker Bharat Dynamics had filed its IPO on January 22, proposing to raise an estimated Rs 1,000 crore.
SBI Capital Markets, IDBI Capital Markets & Securities, and Yes Securities are managing the public issue of shares.
IREDA, which provides financial assistance for projects in the field of renewable energy, had filed its draft proposal on December 21 and its public issue comprises of 139 million shares. The IPO size is estimated to be Rs 850-900 crore.
Proceeds from the issue will be used to augment the company's capital base for meeting "future capital requirements and on-lending, and other general corporate purposes".
Yes Securities (India), Elara Capital (India), IDBI Capital Markets and Securities and SBI Capital Markets will manage the company's public issue.
In 2017, 36 companies had raised Rs 67,147 crore through the IPO route, while 26 companies raised Rs 26,493.8 crore in 2016.