The ongoing excitement in the IPO market is going to continue in future also. Many companies are continuously filing draft for launching IPO with the market regulator SEBI. Now a new name has been added to this list of Bengaluru headquartered infra company Denta Water and Infra Solutions Limited.
IPO process has started
Denta Water and Infra Solutions Water Engineering , Procurement and Construction Company. The company is preparing to launch an IPO to expand its business and finance other expenses. The process of launching the IPO has started with the filing of DRHP with the market regulator SEBI.
Only fresh issue in the IPO
The company has stated in the DRHP that in its proposed IPO There will be no offer-for-sale. This means that the promoters or existing investors of the company are not going to sell their shares in the IPO. 75 lakh new equity shares will be issued in this IPO. The company has said that it is also working on some other measures to raise funds before the IPO.
Preparations to raise funds before the IPO
The company is already working on raising funds before filing the DRHP. It is also in talks with merchant bankers to raise funds by issuing specified securities including private placement of 11 lakh shares, rights issue or preferential issue. If the company is successful in raising funds through pre-IPO placement, then the size of the fresh issue in the IPO will be reduced according to the amount raised.
The company needs this much amount
The company wants to invest the money raised from the recent fresh issue for working capital needs. The company is going to require Rs 50 crore for working capital during the current financial year. The company will need an additional Rs 100 crore in the coming years. Thus the company needs working capital of Rs 150 crore.
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