Sterlite Power Transmission and ESDS software IPOs gain approval from Sebi

Two companies, which have filed draft documents, have obtained approval from the Securities Exchange Board of India to raise funds through initial public offerings. These two companies include Sterlite Power Transmission Ltd and ESDS Software Solution Ltd.

Sterlite Power, led by Anil Agarwal, filed draft documents with SEBI in August to raise about ??1,250 crores.

The proceeds from the issue will be used to repay the debt of the company and its subsidiary Khargone Transmission Ltd (KTL). As of March 2021, the amount outstanding under its working capital and non-fund-based and working capital facilities was ??7323.99 crore.

Axis Capital, ICICI Securities and JM Financial have been named lead managers of the issue.

The company is a leading private sector power transmission infrastructure developer and solution provider, operating in India and Brazil. The company develops an integrated energy transport infrastructure and provides solution services through two business units: Global Infrastructure and Solutions.

The IPO of Nashik-based cloud services and data center company ESDS Software Solution Ltd consists of a new number of ??322 crore and an offer to sell 21.53 million shares by its existing shareholders and promoters.

The OFS includes issues of up to 4.23 million shares by ESDS Partners LLC, and up to 16.86 million shares by South Asia Growth Fund II LP. Currently, ESDS Partners LLC holds a 4.21% stake while South Asia Growth Fund II LP holds a 3.67% stake in the company.

Proceeds from the show will be used to purchase cloud computing equipment for its data centers. The company estimated the total cost for purchasing cloud computing equipment at ??155 crores.

The company will use ??75 crore for financing long-term working capital requirements. It will also use ??22 crore to repay certain term loans. In June 2021, its total guaranteed borrowings amounted to ??71.18 crores. Axis Capital and IIFL Securities are the main managers of the issue.

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Margie D. Carlisle