Neolite ZKW Lightings, SS Retail, Aspri Spirits get Sebi's go-ahead to float IPOs

Daily Excelsior

NEW DELHI, May 15: Neolite ZKW Lightings, SS Retail and Aspri Spirits have secured Sebi’s approval to raise over Rs 1,200 crore collectively through initial public offerings (IPOs), an update with the regulator showed on Friday.

The three companies, which filed their preliminary IPO papers in December, obtained Sebi’s observations during May 6-14.

In Sebi’s parlance, obtaining observations is equivalent to securing approval to float public offering.

Automotive lighting products maker Neolite is aiming to raise Rs 600 crore through its maiden public offering, comprising a fresh issue of shares aggregating up to Rs 400 crore along with an offer for sale (OFS) of shares valued Rs 200 crore by promoters and a shareholder, according to the draft red herring prospectus (DRHP).

The company will use proceeds from the fresh issue for setting up a new manufacturing facility at Kancheepuram, Tamil Nadu; purchasing plant and machinery, electronic expansion at existing manufacturing facilities; payment of debt and general corporate purposes.

Founded in 1992, Neolite ZKW caters to OEMs across passenger vehicles, commercial vehicles, off-road vehicles, two-wheelers and three-wheelers. The company has a strategic alliance with ZKW group GMBH (which became a subsidiary of LG Electronics in 2018).

Mobile retail firm SS Retail’s Rs 500-crore IPO will be a combination of fresh issue of shares worth Rs 300 crore, along with an OFS of Rs 200 crore by promoters and other shareholders, according to the draft papers.

Proceeds of the fresh issue will be used to fund capital expenditure for fit outs towards setting up of new stores in FY27 and FY28; working capital requirements; and general corporate purposes.

SS Retail is a multi-brand retail chain for mobile phones, accessories and other electronic items, with operations in four states — Maharashtra, Karnataka, Madhya Pradesh, and Goa with focus on tier-II and tier-III cities and beyond.

Alco-beverage distribution entity Aspri Spirits is targeting to raise funds through its IPO, which comprises a fresh issue of shares worth Rs 140 crore.

Apart from the fresh issue of shares, there will be an OFS of 50 lakh shares by promoters and other shareholders such as Emerald Electronics and Whiteline Impex, among others, the draft papers showed.

Proceeds from the fresh issue will support debt payment for the company and its subsidiaries — Vinspri Distributors, P M Marketing, Asdis Drinks India, and Aspri Spirits FZE and general corporate purposes.