Sequoia, Everstone, Ascent Capital portfolio firms get IPO green light

 Sequoia, Everstone, Ascent Capital portfolio firms get IPO green light

Digital payments firm One MobiKwik Systems Ltd, auto ancillary company SJS Enterprises Ltd and medical equipment maker Skanray Technologies Ltd have received regulatory approval to float their initial public offerings.

The Securities and Exchange Board of India gave its final observations on the IPO proposal of Sequoia Capital-backed MobiKwik on October 7, according to the SEBI website.

The capital markets regulator issued its final observations on Everstone Capital-backed SJS Enterprises’ IPO on October 5 and on Ascent Capital-backed Skanray’s public offering on October 8.

SEBI’s final observations are akin to approving the IPO proposals.

MobiKwik and SJS had filed their draft red herring prospectuses for the IPOs in July, and Skanyray the month before.

MobiKwik is aiming to raise Rs 1,500 crore through a fresh issue of shares while existing shareholders including some venture investors and the company founders are selling stake worth Rs 400 crore through an offer for sale.

Sequoia is likely to generate multi-fold returns by selling part of its stake in the company. The other selling shareholders include Mobikwik co-founders and the husband-wife duo of Bipin Preet Singh and Upasana Taku, Bajaj Finance, an American Express arm, Cisco and a Tree Line fund.

The IPO of Bengaluru-based SJS Enterprises is entirely a secondary market sale worth Rs 800 crore ($107.3 million). India-focused private equity firm Everstone will walk away with a bountiful harvest by partially exiting the auto ancillary company.

Skanray’s IPO comprises a fresh share sale of Rs 400 crore and a secondary market offering of 14.1 million shares by its founders and investors. Bengaluru-based growth equity provider Ascent Capital hopes to generate multi-bagger returns by selling a bulk of its stake in the medical equipment maker via the IPO.

Sumit Upadhyaya

The Capital Quest