Three companies get Sebi nod for IPOs

Go Fashion India Ltd, CMS Info Systems Ltd and Tega Industries Ltd have got clearance from the Securities Exchange Board of India (Sebi) to raise money via an initial public offering (IPO). Go Colors, owned by Go Fashion India Ltd, Baring Private Equity-backed CMS Info Systems and Tega Industries filed draft papers in August.

Go Fashion’s IPO consists of a fresh issue of shares worth ₹125 crore and an offer for sale of up to 12.88 million shares by its existing shareholders and promoters. Founded in 2010 by Vinod Saraogi and Prakash Saraogi, the firm’s OFS comprises up to 746,000 shares each by PKS Family Trust and VKS Family Trust, 7.50 million shares by Sequoia Capital India Investment, up to 3.31 million shares by India Advantage Fund S4 I and up to 577,000 shares by Dynamic India Fund S4 US I. Currently, PKS Family and VKS Family Trust hold 28.74% stake each. Sequoia Capital India Investments IV holds 28.73% stake, India Advantage Fund S4 I 12.69% and Dynamic India Fund S4 US I holds 1.1% stake in the firm. The firm plans to use ₹33.73 crore from the proceeds to fund the roll out of 120 new exclusive brand outlets (EBOs)during FY23 and FY24. As of May 2021, it had 450 EBOs in 115 cities. It also plans to use ₹61.40 crore to fund working capital requirements.

CMS Info Systems’ IPO comprises a pure offer for sale of up to ₹2,000 crore of shares by Sion Investment Holdings Pte., an affiliate of Baring Private Equity Asia. Currently, Sion Investment Holdings hold 100% stake in the firm. For more than a decade, CMS has been owned by private equity investors, first by Blackstone, which took a controlling stake in 2008, and later by Baring, which bought the firm in 2015 for about ₹2,000 crore. CMS is involved in ATM and cash management, ATM installation, maintenance services and card personalization services. This will be Baring’s second attempt to take CMS public. In 2017, it had filed draft papers with Sebi, but let its 12-month approval period lapse without launching the IPO.