Agro-chemical manufacturer Dharmaj Crop Guard and steel pipe maker Venus Pipes & Tubes have received regulatory approvals to raise funds through initial public offerings (IPOs).

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The companies that had filed their preliminary IPO papers with Sebi between December 2021 and January 2022 obtained its "observation" letter on March 29-31, an update with the regulator showed on Monday.

In Sebi's parlance, issuance of observation letter means the regulator's go ahead to float IPO. According to the Draft Red Herring Prospectus (DRHP), Dharmaj Crop Guard's IPO consists of a fresh issue of equity shares worth up to Rs 216 crore and an offer-for-sale (OFS) of up to 14.83 lakh shares by its existing shareholders.

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Eligible employees of the company will also be able to subscribe shares reserved for them, the draft paper said. According to market sources, the Ahmedabad-based firm looks to raise anywhere between Rs 250 crore and Rs 300 crore.

Proceeds from the IPO will be used for capital expenditure towards setting up of a manufacturing facility at Saykha Bharuch in Gujarat, incremental working capital requirements, payment of debt and general corporate purposes, the draft paper said.

The company has been engaged in manufacturing and marketing of a wide range of agro chemical formulations such as insecticides, fungicides, herbicides, plant growth regulator, micro fertilisers and antibiotics.

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Venus Pipes & Tubes said that 50.74 lakh equity shares of the company will be sold through IPO. Proceeds from the IPO will be used for financing capacity expansion and backward integration for manufacturing of hollow pipes, to meet working capital requirements and for general corporate purposes, its draft paper said.

Venus Pipes & Tubes is one of the growing stainless steel pipes and tubes manufacturers and exporters.

(Edited by : Jomy Jos Pullokaran)

First Published:Apr 4, 2022 6:32 PM IST