Sebi Gives Nod to IPOs of Varindera Constructions, Ellenbarrie Industrial Gases, and Sambhv Steel Tubes

Last Updated on January 29, 2025 by IPO Manthan Team

The Securities and Exchange Board of India (SEBI) has officially approved the initial public offerings (IPOs) of Varindera Constructions, Ellenbarrie Industrial Gases, and Sambhv Steel Tubes, paving the way for these companies to go public within the next year. This approval, granted through observation letters issued between January 21-23, 2025, signals a positive move amid a growing IPO trend in India. With an expected fundraising of ₹2,100 crore, these IPOs will include a fresh issue of ₹900 crore and an offer-for-sale (OFS) of ₹300 crore by promoters.

Among these, Varindera Constructions stands out with an ambitious IPO plan, aiming to raise ₹1,200 crore. The structure includes a fresh issue of ₹900 crore and an OFS of ₹300 crore, where promoters Varinder Kumar Garg and Sushma Garg will sell shares worth ₹201 crore and ₹99 crore, respectively. The funds raised will be strategically utilized, with ₹160.1 crore allocated for equipment purchases, ₹155 crore for working capital, and ₹359.9 crore dedicated to debt repayment. The company also plans to use the remaining funds for general corporate purposes.

SEBI’s approval comes at a time when the Indian IPO market is experiencing significant momentum. The IPO of Varindera Constructions, in particular, is drawing attention due to the company’s strong financial growth, with a 31.5% rise in net profit, reaching ₹143.4 crore in FY 2023-24, and revenues growing by 32.5% to ₹1,389 crore. With an order book valued at ₹3,844.8 crore, including projects in Mauritius and the Maldives, the company is well-positioned for expansion.

The construction sector in India is witnessing a surge in investments, both from the public and private sectors. Varindera Constructions has established itself as a key player, having successfully executed large-scale projects over the past decade. With SEBI’s green light, the company’s IPO is expected to further strengthen its financial standing and open up new growth opportunities. Market analysts believe that SEBI gives nod to IPOs of Varindera Constructions at the right time, as infrastructure development continues to be a major focus for the government.

With SEBI’s approval, Varindera Constructions now joins a growing list of companies gearing up for public listing. The IPO market has been vibrant, with investors showing strong interest in infrastructure and manufacturing firms. This move is expected to enhance investor confidence, providing them with an opportunity to participate in the company’s growth. Sebi gives nod to IPOs of Varindera Constructions as part of a broader wave of IPOs hitting the Indian stock market, with expectations of high demand among institutional and retail investors.

For investors, the approval of these three IPOs presents a chance to diversify their portfolios, especially in sectors like construction and industrial gases. Varindera Constructions’ strong order book and revenue growth make it an attractive investment, while the IPOs of Ellenbarrie Industrial Gases and Sambhv Steel Tubes add further diversity to the market. Analysts are closely watching how these IPOs will be priced and how they perform post-listing. SEBI gives nod to IPOs of Varindera Constructions at a time when market sentiment is largely positive, indicating strong potential for successful public offerings.

With the IPO process now moving forward, Varindera Constructions and the other two firms are expected to finalize their listing dates soon. Investors are eagerly awaiting further details, including issue prices and subscription dates. If market conditions remain favorable, these IPOs could attract significant interest, continuing the momentum in India’s booming primary market. As SEBI gives nod to IPOs of Varindera Constructions, the company is set to enter a new phase of growth, leveraging public capital to expand its operations and strengthen its market presence.