29 April 2023 1:45 AM GMT


Fourth Kerala company pulls out of planned IPO in a row in 6 months

C L Jose

Fourth Kerala company pulls out of planned IPO in a row in 6 months

Kochi: Asianet Satellite Communications Ltd (Asianet) has become the latest in the series of Kerala-based companies that have pulled out of their planned initial public offering (IPO) in the past six months or so.

Though myfinpoint was not able to get an official confirmation to this end, sources close to the company said the company would let the April-30 deadline, which is just two days away, lapse and re-file application for IPO again once the market conditions improve.

Asianet chose the same route followed by ESAF Small Finance Bank and Popular Vehicles & Services Ltd to duck out of the IPO.

Whereas, Joyalukkas group had withdrawn its Rs2,300 crore IPO plan on February 21, 2023, without waiting for the Sebi approval to be in place.

IPO facts

The Rs765 crore Asianet IPO comprised a Rs300 crore worth fresh issue portion and an offer for sale (OFS) amounting to Rs465 crore, which was in favour of Hathway Investments Pvt Ltd.

The book-running lead managers to the Asianet issue are Axis Capital Ltd and Nomura Financial Advisors and Securities Ltd, whereas the registrar to the issue is Link Intime India Pvt Ltd.

According to the IPO prospectus published on the Sebi website, Asianet was supposed to utilize part of the proceeds from the fresh issue to repay/prepay certain borrowings availed of by the company and its material subsidiary, Asianet Digital Network Pvt Ltd.

Part of the proceeds also would have been used to fund capital expenditure towards continued expansion of Asianet’s network infrastructure and also for general corporate purposes.

Joyalukkas and ESAF SFB have given a slip to IPO twice. Both the companies have avoided furnishing a proper reason for leaving the IPO exercise despite the fact that ESAF faces regulatory compulsions to take out an IPO at the earliest.

However, K Paul Thomas has already informed through media that the bank will re-file application for a fresh IPO process in May itself, soon after its 2022-23 (FY23) financials are published.

The chairman and MD of Joyalukkas, Mr Joy Alukkas, had told earlier that the company was unlikely to move ahead with yet another IPO plan in the immediate future.

Popular IPO

Popular Vehicles and Services Ltd also ‘escaped’ its planned IPO by allowing the September 29 (2022) deadline to lapse.

The issue was a combination of fresh issue of Rs150 crore and a close-to Rs520 crore offer for sale (OFS).

: Asianet, Joyalukkas, Mr Joy Alukkas, K Paul Thomas (ESAF MD & CEO) , ESAF Small Finance Bank, Popular Vehicles and Services, Axis Capital, Nomura Financial Advisors and Securities, Link Intime India Pvt Ltd.