Capital Small Finance Bank, Krystal Integrated Services get Sebi's nod to float IPOs

NEW DELHI: Three entities -- Capital Small Finance Bank, Krystal Integrated Services and Vibhor Steel Tubes -- have received Sebi's go-ahead to raise funds through Initial Public Offerings (IPOs).

All three firms, which filed their preliminary IPO papers with the capital markets regulator in October 2023, obtained their observation letters during January 8-12, an update with the Securities and Exchange Board of India (Sebi) showed on Tuesday.

In Sebi's parlance, obtaining its observation letter means its approval to float the public issue.

According to the draft papers, Capital Small Finance Bank's IPO comprises a fresh issue of equity shares aggregating up to Rs 450 crore and an Offer For Sale (OFS) of up to 24.12 lakh equity shares by existing investors.

Those selling shares in the OFS include -- Oman India Joint Investment Fund II, PI Ventures LLP, Amicus Capital Private Equity I LLP and Amicus Capital Partners India Fund I.

Proceeds from the fresh issue will be used towards augmenting the bank's Tier-I capital base to meet future capital requirements. Besides, the funds will be used towards meeting the expenses in relation to the offer.

Capital Small Finance Bank is among the leading small finance banks (SFBs) in India in terms of cost of funds, retail deposits and CASA deposits for fiscal 2023.

Krystal Integrated Services' IPO consists of a fresh issuance of equity shares worth Rs 175 crore and an OFS of 17.5 lakh shares by promoter Krystal Family Holdings Pvt Ltd, as per the draft papers.

At present, Krystal Family Holdings owns 100 per cent stake in the company.

Proceeds from the fresh issue will be utilised for debt payment, supporting working capital requirements, fund capital expenditure for the purchase of new machinery and general corporate purposes.

Krystal is an integrated facilities management services company with a focus on healthcare, education, public administration, airports, railways and metro infrastructure, and retail sectors. Also, it provides staffing solutions and payroll management to customers, as well as private security and manned guarding services and catering services.

Vibhor Steel's maiden public issue is entirely a fresh issue of equity shares worth Rs 66.47 crore. The funds mobilised through the issue will be used to fund working capital requirements and for general corporate purposes, the draft papers showed.