The Securities and Exchange Board of India (SEBI) has given the green light for four companies to proceed with their IPO plans. The companies include Zaggle Prepaid Ocean Services, Cyient DLM, Healthvista India, and Rashi Peripherals.

The four companies filed IPO papers with the regulator between July 2022 and January 2023. The regulator issued its observations between March 29-31, 2023

The observations letter was issued to Zaggle and Cyient subsidiaries on March 29, while Healthvista and Rashi Peripherals received their observations letter on March 31, indicating its approval to launch their IPOs.

Zaggle Prepaid Ocean Services, a B2B SaaS fintech company established in 2011, filed its draft red herring prospectus (DRHP) with the regulator in December 2022, aiming to raise funds via an IPO. Zaggle develops financial solutions and products to manage the business expenses of corporates, SMEs, and startups. The company has 1,896 customers and 19.82 lakh users as of June-end.

The IPO consists of a fresh issuance of shares worth Rs 490 crore and an offer for sale (OFS) of 1.05 crore equity shares by promoters and investors. The company plans to use the new issue proceeds to acquire and retain customers, develop technology and products, repay debt, and for general corporate purposes. ICICI Securities, Equirus Capital, IIFL Securities, and JM Financial are book-running lead managers to the issue.

Healthvista provides a wide range of healthcare services under its brand Portea, including primary care, geriatric and palliative care, ICU care, post-operative and post-hospitalization care, chronic care, mother and baby care, and cancer care, all at home. The IPO comprises a fresh issuance of shares worth Rs 200 crore and an offer for sale of up to 5.62 crore shares by investors.

The IPO is expected to raise about Rs 1,000 crore, and the book-running lead managers to the issue are SBI Capital Markets, IIFL Securities, and JM Financial. The selling shareholders include Accel Holdings, Ventureast Life Fund, MEMG CDC Ventures, Qualcomm Asia Pacific, and Sabre Partners Trust. The company plans to use the funds for working capital requirements, repaying debts, purchasing medical equipment, marketing and brand-building activities, inorganic growth initiatives, and general corporate purposes.

Rashi Peripherals is an Indian distributor of information and communications technology products and claims to be one of the fastest-growing national distribution partners for global technology brands in India. The company plans to raise Rs 750 crore through a public issue consisting of only new issue shares. The funds raised will repay debts, fulfil working capital requirements, and serve general corporate purposes. Rashi may also undertake a private placement of Rs 150 crore before filing its red herring prospectus, and if so, the amount raised will be deducted from the fresh issue.

Cyient DLM, the subsidiary of Cyient, received SEBI approval to raise Rs 740 crore through an IPO only comprising a fresh issue. Cyient DLM may also consider a pre-IPO placement of Rs 148 crore before filing the IPO papers, reducing the fresh issue size.
The company plans to use the funds to fund incremental working capital needs, capital expenditures, debt repayment, inorganic growth through acquisitions, and for general corporate purposes.

The IPOs of both companies, Rashi Peripherals and Cyient DLM, are completely fresh issues with no OFS component.