Markets Regulator Sebi Gives Green Light to Two Major IPOs
In a significant development for India's primary market, the Securities and Exchange Board of India (Sebi) has granted its approval for initial public offerings (IPOs) from two distinct companies: Clean Max Enviro Energy Solutions and NephroPlus. This move signals robust activity in the IPO space, offering investors fresh opportunities to participate in the growth stories of a renewable energy provider and a leading dialysis network.
Clean Max Enviro Energy Solutions IPO: A Deep Dive
Clean Max Enviro Energy Solutions is set to launch a massive public issue aiming to raise over ₹5,200 crore. The IPO structure is a combination of a fresh issue of shares and an offer-for-sale (OFS) by existing promoters and investors.
The company plans a fresh issue of shares worth up to ₹1,500 crore. Simultaneously, the offer-for-sale component will see existing shareholders divest stakes worth up to ₹3,700 crore. The OFS involves significant sell-downs by key entities, including Kuldeep Pratap Jain (up to ₹321.37 crore), BGTF One Holdings (DIFC) Limited (up to ₹1,970.83 crore), KEMPINC LLP (up to ₹225.61 crore), Augment India I Holdings, LLC (up to ₹991.94 crore), and DSDG Holdings APS (up to ₹190.25 crore).
A notable portion of the proceeds from the fresh issuance, specifically ₹1,125 crore, is earmarked for the repayment or pre-payment of outstanding borrowings of the company and its subsidiaries. The remaining funds will be allocated for general corporate purposes. The company has also reserved the option for a pre-IPO placement of up to ₹300 crore, which would correspondingly reduce the size of the fresh issue.
The allocation strategy for the net offer is as follows: not more than 50% for qualified institutional buyers, not less than 15% for non-institutional bidders, and not less than 35% for retail individual bidders. Eligible employees will also have a reserved subscription portion with a potential discount.
NephroPlus IPO: Expanding Healthcare Access
Hyderabad-based dialysis care provider NephroPlus has also received the regulatory nod for its public offering. According to its draft red herring prospectus (DRHP), the IPO comprises a fresh issue of ₹353.4 crore and an offer-for-sale of 1.27 crore equity shares by its selling shareholders.
The company has outlined clear objectives for utilizing the net proceeds from the fresh issue. A sum of ₹129.1 crore is designated for capital expenditure to open new dialysis clinics across India. Another ₹136 crore will be used for the pre-payment or scheduled repayment of certain borrowings. The remainder will serve general corporate purposes.
Founded in 2009, NephroPlus has achieved a remarkable milestone by crossing 500 dialysis centres globally, positioning itself among major international players like Fresenius Medical Care and DaVita. The network operates in five countries33,000 patients every month.
The promoters of the company include Vikram Vuppala and several investment entities. The offer-for-sale involves promoter selling shareholders such as Investcorp Private Equity Fund II and Healthcare Parent Limited, alongside other selling shareholders like the International Finance Corporation and funds managed by 360 One.
What This Means for the Market and Investors
The approval of these two IPOs diversifies the investment landscape. Clean Max Enviro represents the growing renewable energy sector, attracting investors focused on sustainable and green initiatives. In contrast, NephroPlus offers exposure to India's expanding healthcare and medical services industry, a sector with long-term growth potential driven by increasing health awareness.
Investors should carefully analyze the company fundamentals, the object of the issue, and market conditions before making any investment decisions. The entry of such established players into the public market is a positive indicator of the depth and maturity of India's capital markets.
