Prince Pipes, Newgen Software Technologies file IPO papers with Sebi
The Prince Pipes IPO is expected to be worth Rs700 crore and Newgen Software Technologies share sale of around Rs400 crore
Mumbai: Prince Pipes and Fittings Ltd, a polymer pipes and fittings manufacturing company, on Wednesday filed the draft prospectus for its initial public offering (IPO).
The IPO is expected to be worth Rs700 crore, comprising both primary share sale as well as an offer-for-sale by the promoters, according to the draft red herring prospectus (DRHP) available on the website of one of the investment banks managing the share sale.
The company will raise Rs500 crore of primary capital through a fresh issue of shares. The proceeds from the fresh issue will be used by the company for debt repayment, for establishing a new manufacturing facility and upgradation of equipment at existing manufacturing facilities.
Promoters of the company will sell part of their stakes through a secondary share sale, as part of the proposed IPO, which is expected to fetch the promoters around Rs200 crore.
The company has appointed Edelweiss Financial Services Ltd and JM Financial Institutional Securities Ltd to manage the public offering.
The company markets its products under two brand names Prince Piping Systems and Trubore Piping Systems, which are used for varied applications in plumbing, irrigation and sewage disposal.
In fiscal 2016-17, the company reported a revenue of Rs1,263.87 crore, up 25% from the previous fiscal. The company reported a profit of Rs74.36 crore in 2016-17, up 153% from a year ago, according to the DRHP.
Also on Wednesday, Newgen Software Technologies Ltd, New Delhi-headquartered software products company filed the draft prospectus for its IPO.
The IPO comprises fresh issue worth Rs95 crore. The proceeds from the fresh issue will be used by the company for purchasing and furnishing of office premises near Noida-Greater Noida Expressway, Uttar Pradesh, and to meet general corporate purposes.
The IPO will also see an offer-for-sale by existing shareholders, including private equity firm Ascent Capital Advisors, venture capital firm IDG Ventures India Ltd and Pandara Trust.
The IPO size is expected to be around Rs400 crore.
The company has hired ICICI Securities Ltd, Jefferies India Pvt Ltd and IDFC Bank Ltd to manage the public offering.
Newgen is a global provider of business process management, enterprise content management, customer communication management and case management solutions.
So far this year, 24 companies have raised around Rs30,800 crore through IPOs. In 2015 and 2016, 47 companies had tapped the IPO route to raise approximately Rs40,107 crore, data from primary market tracker Prime Database shows.
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