Sebi clears IPOs of Hindustan Labs, RK Steel Manufacturing Co Ltd

Generic drug maker Hindustan Laboratories and steel tubes and pipes manufacturer RK Steel Manufacturing Company have secured Sebi's approval to raise funds through initial public offerings (IPOs), an update with the markets regulator showed on Thursday.

The two companies, which filed their preliminary IPO papers in September, obtained Sebi's observations on April 27.

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

Hindustan Laboratories' maiden public offering comprises a fresh issue of 50 lakh shares, along with an offer for sale (OFS) of 91 lakh shares by the promoter, according to the draft red herring prospectus (DRHP).

The company proposes to utilise IPO proceeds for funding the working capital requirements and general corporate purposes.

Hindustan Laboratories is an Indian pharmaceutical company primarily engaged in the large-scale manufacturing and supply of generic medicines to government institutions under a business-to-government (B2G) framework.

RK Steel Manufacturing Company's IPO is entirely a fresh issue of up to 2 crore equity shares with no OFS component, draft papers showed.

The company plans to allocate funds towards repayment or prepayment of certain borrowings, working capital requirements, and general corporate purposes.

Shares of both companies will be listed on the BSE and NSE.