Sebi clears Five Star Business Finance, Waaree Energies IPOs


Capital markets regulator Securities and Exchange Board of India (SEBI) has issued an observance letter to NBFC Five Star Business Finance and solar comany Waaree Energies regarding their initial public offerings (IPOs).

This effectively means Sebi has given its green light for the share sales.

Waaree Energies has filed its draft red herring prospectus (DRHP) with Sebi in September, while Five Star Business Finance has filed the papers in November.

The regulator has issued observation letters to both the companies between 3-7 January period, according to an an update with the regulator.

Five Star Business Finance, which is backed by bunch of investors like TPG, Matrix Partners, Norwest Ventures, Sequoia and KKR, is looking to raise up to 2,752 crore through an IPO.

The IPO is a entirely an offer for sale by existing shareholders and promoter group entities.

The OFS will see sale of shares to the tune of 257.10 crore by SCI Investments V, 568.92 crore by Matrix Partners India Investment Holdings II LLC, 9.56 crore by Matrix Partners India Investments II Extension LLC, 385.65 crore by Norwest Venture Partners X- Mauritius, 1,349.78 crore by TPG Asia VII SF Pte Ltd and 180.93 crore by promoter group entities.

Currently, TPG Asia holds 20.99% stake, Matrix Partners owns over 14%, Norwest Venture has 10.22% stake and SCI Investments holds 8.83% stake in the company.

Chennai-headquartered Five Star Business Finance provides secured business loans to micro-entrepreneurs and self-employed individuals, each of whom are largely excluded by traditional financing institutions.

Waaree Energies’ IPO comprises a fresh issue of equity shares of aggregating to 1,350 crore and offer for sale (OFS) of 40,07,500 equity shares by existing shareholders and promoters.

The OFS consists of sale of 13,15,000 equity shares each by Hitesh Chimanlal Doshi, Virenkumar Chimanlal Doshi and Mahavir Thermoequip Pvt Ltd and up to 40,000 by Samir Surendra Shah and up to 22,500 equity shares by Nilesh Gandhi jointly with Drasta Gandhi.

The proceeds from fresh issuance worth 978.36 crore and 184.23 crore will be utilised to finance the cost of setting up a two gigawatts (GW) per annum solar cell manufacturing facility and a one GW per annum solar PV module manufacturing facility in Chikhli, Gujarat.

The remaining proceeds will be used for general corporate purposes.

Waaree Energies is one of the major players in the solar energy industry in India focused on PV module manufacturing, with an aggregate installed capacity of two GW as of March 31, 2021.

The company currently operates three manufacturing facilities comprising four factories in India at Surat, Tumb and Nandigram.

(With inputs from PTI)

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