Kross, Saraswati Saree Depot get SEBI’s goahead to float IPO

Auto parts manufacturer Kross Ltd and Saraswati Saree Depot have received SEBI’s go ahead to raise funds through initial public offerings.

The two companies filed their preliminary IPO papers with the capital markets regulator between October and December 2023 and obtained their regulatory observation during March 2227, an update with the Securities and Exchange Board of India (SEBI) showed on Monday.

As per the draft papers, Kross’ maiden public issue is a mix of a fresh issue of shares worth up to ₹250 crore and an Offer for Sale (OFS) of shares aggregating up to ₹250 crore by promoters.

The OFS portion consists of equity shares to the tune of up to ₹168 crore by Sudhir Rai and ₹82 crore by Anita Rai.

The Jamshedpurbased company proposes to utilise the net proceeds of the fresh issue for the purchase of machinery and equipment, payment of debt and funding the working capital requirements of the company.

Saraswati Saree Depot’s IPO comprises a fresh issue of 72.45 lakh equity shares and 35.55 lakh equity shares by promoters, according to the draft papers.

Funds collected through the fresh issue will be used to support working capital requirements and for general corporate purposes.

Saraswati Saree Depot is a key player in the sarees wholesale segment. The company is also engaged in the wholesale business of other women’s apparel such as kurtis, dress materials, lehengas, and bottoms.

However, the regulator has returned the draft IPO papers of two companies, Polymatech Electronics and Garuda Construction and Engineering, without specifying any reason.

Polymatech Electronics and Garuda Construction and Engineering had filed their draft IPO papers in October 2023 and February 2024, respectively.