Kross, Saraswati Saree Depot get Sebi's go ahead to float IPO

Auto parts manufacturer Kross Ltd and Saraswati Saree Depot Ltd have received approval from Sebi to raise funds through initial public offerings. Kross plans to raise up to Rs 500 crore through a mix of fresh issue and offer for sale, while Saraswati Saree Depot plans to raise funds for working capital and corporate purposes. Two other companies, Polymatech Electronics and Garuda Construction and Engineering Ltd, have had their draft IPO papers returned without reason.

Auto parts manufacturer Kross Ltd and Saraswati Saree Depot Ltd have received Sebi's go ahead to raise funds through initial public offerings.

The two companies filed their preliminary initial public offering (IPO) papers with the capital markets regulator between October and December 2023 and obtained their regulatory observation during March 22-27, an update with the Securities and Exchange Board of India (Sebi) showed on Monday.

As per the draft papers, Kross' maiden public issue is a mix of a fresh issue of shares worth up to Rs 250 crore and an Offer for Sale (OFS) of shares aggregating up to Rs 250 crore by promoters. The OFS portion consists of equity shares to the tune of up to Rs 168 crore by Sudhir Rai and Rs 82 crore by Anita Rai.

The Jamshedpur-based company proposes to utilise the net proceeds of the fresh issue for the purchase of machinery and equipment, payment of debt, and funding the working capital requirements of the company.

Saraswati Saree Depot's IPO comprises a fresh issue of 72.45 lakh equity shares and 35.55 lakh equity shares by promoters, according to the draft papers.

Funds collected through the fresh issue will be used to support working capital requirements and for general corporate purposes.

Saraswati Saree Depot is a key player in the sarees wholesale segment. The company is also engaged in the wholesale business of other women's apparel such as kurtis, dress materials, lehengas, and bottoms.

However, the regulator has returned the draft IPO papers of two companies, Polymatech Electronics and Garuda Construction and Engineering Ltd, without specifying any reason.

Polymatech Electronics and Garuda Construction and Engineering had filed their draft IPO papers in October 2023 and February 2024, respectively.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)