SCEL's Ambitious Rs 1,400 Crore IPO Plan

Silver Consumer Electricals Ltd (SCEL) is planning to generate Rs 1,400 crore through an IPO. This involves a Rs 1,000 crore fresh issue and a Rs 400 crore Offer for Sale. Funds will repay borrowings, meet subsidiary obligations, and support corporate purposes. SCEL manufactures electrical consumer durables.

Silver Consumer Electricals Ltd (SCEL) is pursuing a major financial move, seeking to raise Rs 1,400 crore through its first Initial Public Offering (IPO). The company has filed the necessary documents with the Securities and Exchange Board of India (Sebi) for approval.

As outlined in their Draft Red Herring Prospectus, the IPO consists of a fresh share issue of Rs 1,000 crore alongside an Offer for Sale worth Rs 400 crore. These funds will tackle existing borrowings and facilitate general corporate activities. A significant portion, Rs 865 crore, is earmarked for debt reduction, with Rs 35 crore allocated to the debts of its subsidiary, BAPL.

Headquartered in Rajkot, SCEL is a prominent producer of consumer electricals, spanning products like motors, solar pumps, and lighting devices. The firm also collaborates with leading OEMs while promoting its own brands, 'Silver' and 'Bediya'. The IPO is steered by Motilal Oswal Investment Advisors, ICICI Securities, JM Financial, and Choice Capital Advisors.

(With inputs from agencies.)