Can you tell me about the 3 key IPOs that SEBI approved on Tuesday 22nd February?

The week gone by saw SEBI approving 3 IPOs in all. For instance, SEBI has issued its list of observations (SEBI term for IPO approval), for the proposed IPOs of API Holdings (PharmEasy), Wellness Forever Medicare Ltd and CMR Green Technologies Ltd. All these companies had filed their DRHP between Sep-21 and Nov-21 and with the IPOs approved, they can now go ahead and work out the timing of their IPOs.

PharmEasy had filed DRHP with SEBI in Nov-21 for its proposed Rs.6,250 crore IPO. This will largely be a fresh issue. The funds will be deployed to repay debt and fund organic and inorganic expansion. PharmEasy is also considering a pre-IPO placement of Rs.1,250 crore and the actual IPO could be reduced proportionately. However, the timing of the PharmEasy IPO will be largely a function of how the other digital IPOs like Delhivery and OYO decide.

The other company to get approval, Wellness Forever Medicare, is a retail pharmacy chain backed by Adar Poonawala of Serum Institute. SII will substantially exit Wellness Forever Medicare via the OFS route. The IPO of Wellness will comprise of fresh issue of Rs.400 crore and an OFS of 16.04 million shares. The fresh issue of Rs.400 crore will be used to bankroll its capital expenditure plans and to set up new stores. It will also reduce its debt.

The third IPO is from CMR Green Technologies; a leading metal recycler in the domestic aluminium recycling industry. It had filed its DRHP before the other two in September 2021. The IPO comprises of a fresh issue of Rs.300 crore and an OFS of up to 33.41 million shares by promoters and early shareholders. Fresh issue proceeds will be used by the company for payment of debt and general corporate purposes.