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There is another great news for investors investing in the stock market. Market regulator SEBI has given formal approval to three major companies—Kanohar Electricals, Torrent Gas and Satya Agencies—to launch their IPOs. With the entry of these three companies in the market, the way for raising capital has been cleared. These companies will not only expand their business but will also bring a new earning opportunity for investors.
Know which companies got the ‘green signal’
These three companies that have received SEBI approval belong to different states of the country:
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Kanohar Electricals (Uttar Pradesh): It is a giant company in the transformer manufacturing sector.
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Torrent Gas (Gujarat): This company is expanding rapidly in the field of CNG and piped natural gas.
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Satya Agencies (Tamil Nadu): It is a large retail chain of consumer electronics and home appliances in South India.
IPO size and investment target
According to draft papers submitted by the companies, Satya Agencies is set to raise a total of Rs 600 crore through the IPO, which includes fresh shares worth Rs 300 crore and an offer for sale (OFS) of Rs 300 crore. At the same time, Kanohar Electricals will issue new shares worth Rs 300 crore and the promoters will sell 1.45 crore shares. Torrent Gas has used SEBI’s ‘pre-filing route’, which has enabled them to keep their issue size confidential for now. The main objective of these companies is to repay loans, business expansion and meet the needs of working capital.
What is the business model of these companies?
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Kanohar Electricals: This company manufactures transformers for power transmission, railways and renewable energy sectors. It is an important player in the electrification of Indian Railways.
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Torrent Gas: Operating across 34 districts of Gujarat, Torrent Gas has 526 CNG stations and over 2 lakh piped gas connections. It is an emerging big company in the energy sector.
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Satya Agencies: They have dominance in South India. It has a huge network of physical stores in Tamil Nadu, Andhra Pradesh, Kerala, Karnataka and Puducherry, selling home appliances and electronics.
After the IPO of these companies comes into the market, investors will get a great opportunity to diversify their portfolio. Their issue price and dates may be announced in the coming weeks.