New Delhi, July 28 -- Fund managers are seeking a lower valuation for Zepto in its initial public offering (IPO), Tablespace has tapped bankers for a possible stock market listing, and a Coal India unit is gearing up for an IPO, according to separate media reports.
Meanwhile, Anicut Capital has taken over the shares of the Bira 91 beverage maker's founder and will appoint three board members as part of a restructuring effort, and KKR is exploring options to monetise its holding in LS Automotive India.
Zepto
Quick commerce unicorn Zepto and investors have initiated discussions regarding a revised post-money IPO valuation of $3 billion (nearly Rs 29,000 crore), according to media reports.
A Moneycontrol report said that the revised pre-money valuation for the issue was around $2.5 billion (Rs 24,000 crore) and discussions were expected to continue this week. No final decision has been made regarding the valuation or deal structure.
Some of India's top domestic mutual funds pushed back against the earlier valuation of $4-5 billion, with asset managers demanding a 30-40% cut to the valuation, according to an ET report. Zepto's bankers and a prominent investor in the company are scrambling to persuade money managers to meet the company mid-way, the report noted.
Moneycontrol noted that if the book were built around the suggested revised IPO valuation levels, the IPO structure would split into a proposed primary issue of around Rs 5,000 crore along with a small secondary component.
Tablespace Tablespace Technologies is preparing to file for an IPO that could raise as much as $350 million (nearly Rs 3,350 crore), according to a Bloomberg report.
The managed workspace provider, backed by Hillhouse Investment Management, will submit its draft papers by early August, the report said, citing sources familiar with the matter. The proposed IPO will likely comprise a fresh issue of shares worth as much as Rs 1,000 crore and an offer for sale by existing investors, the report added.
According to the report, Axis Capital, IIFL Capital Services, BofA Securities and CLSA are advising on the proposed share sale. Deliberations are ongoing and details of the offering, including its size and structure, could change.
Mahanadi Coalfields Ltd
One of Coal India's most profitable units, Mahanadi Coalfields Ltd (MCL) is gearing up for an IPO and has invited investment banks to pitch for this plan, according to a Moneycontrol report. The issue is likely to have only an offer for sale (OFS) portion, with Coal India diluting a part of its holding.
The banker presentations for the state-owned MCL are expected to take place in Kolkata in August, the report said, citing sources.
The proposed stock market listing is expected to be worth around Rs 10,000 crore and the offer size and structure will be finalised closer to the launch, the report added.
All top domestic investment banks are expected to participate in the pitches, the report noted, adding that some foreign banks could join the process.
Mahanadi Coalfields is one of Coal India's largest subsidiaries and operates several opencast and underground mines in Odisha. The company accounts for a significant share of Coal India's production and supplies coal to power utilities, steel makers, cement manufacturers and other industrial consumers.
Bira 91
Venture debt firm Anicut Capital has taken over the shares of B9 Beverages founder Ankur Jain and is expected to nominate three members to the board of the troubled company, according to The Economic Times, citing sources.
Anicut will also lead the restructuring efforts for Bira 91 brand's seller, the report said. Between 2017 and 2022, Anicut provided loans to B9 Beverages and created liens against those loans on founder Ankur Jain and his family's 17.8% stake in the company.
Anicut Capital will not control the voting shares until certain milestones are completed over the next three to six months, the report stated. Anicut Capital's co founder IAS Balamurugan, a former corporate banker with ICICI Bank, will be amongst the three nominees the fund will appoint to Bira's board, the report added.
LS Automotive
Private equity firm KKR is exploring options to monetise its investment in LS Automotive India including a sale, according to a Bloomberg report.
KKR may seek a $500 million valuation for the company and other buyout firms and industry players have shown preliminary interest, the report said, citing sources. The talks are in the early stages, and no final decisions have been made. LS Automotive Technologies is a major manufacturer of vehicle switches and components in South Korea. It also has operations in India, China and Mexico. KKR invested in LS Automotive in 2018 as part of a broader deal.
Published by HT Digital Content Services with permission from VC Circle.