Arohan Financial Services, Dodla Dairy receive Sebi’s approval for IPO


NBFC Arohan Financial Services and Dodla Dairy, a leading dairy company in South India, have received capital markets regulator SEBI’s approval to roll out initial share sales.

Both the companies filed their preliminary papers with Sebi on February 15 and received its observations on April 23, an update with Sebi revealed.

Sebi’s remark is very essential for any company to float public issues like initial public offer (IPO), follow-on public offer (FPO), and rights issue.

Arohan Financial Services intends to raise between Rs 1,750 crore and Rs 1,800 crore, market sources stated.

The public offer of the Aavishkaar Group backed company includes a fundraise via a fresh issuance of shares amounting to Rs 850 crore, according to Draft Red Herring Prospectus (DRHP).

Additionally, the company will have an offer for sale of 2,70,55,893 equity shares by Maj Invest Financial Inclusion Fund II K/S, Michael & Susan Dell Foundation, Tano India Private Equity Fund II, TR Capital III Mauritius, and Aavishkaar Goodwell India Microfinance Development Company II Ltd.

The funds raised from the fresh issue will be used for expanding the company’s capital base to fulfill its future capital requirements.

Edelweiss Financial Services Ltd, ICICI Securities Ltd, Nomura Financial Advisory and Securities (India) Private Limited, and SBI Capital Markets Limited are appointed as the managers of the issue.

Dodla Dairy’s IPO includes fresh issuance of shares worth up to Rs 50 crore, besides, an offer for sale of up to 10,085,444 equity shares by TPG Dodla Dairy Holdings Pte Ltd, Dodla Sunil Reddy, Dodla Deepa Reddy, and Dodla Family Trust, according to the draft papers.

Proceeds from the issue will be utilized for payment of some borrowings, funding capital expenditure requirements of the company, and general corporate purposes.

Axis Capital and ICICI Securities will manage the company’s initial share sale.

The company’s operations in India are primarily across the four south Indian states of Andhra Pradesh, Telangana, Karnataka, and Tamil Nadu. Its international operations are based in Uganda and Kenya.

Several companies are launching their IPOs in 2021. Both Arohan Financial Services and Dodla Dairy will have huge growth opportunities if the IPO is successful.

Shishir Gupta, Founder and CEO, StartupLanes

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