SEBI returns Diffusion Engineers’ IPO draft, Rays Power Infra withdraws DRHP
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The Securities and Exchange Board of India (SEBI) has returned the draft papers filed by Diffusion Engineers for its proposed initial public offering (IPO). The engineering solutions provider submitted its draft red herring prospectus (DRHP) on December 27, 2023, aiming to raise funds through a fresh issue of 98.47 lakh equity shares, according to a report by Moneycontrol.
Livemint could not independently verify this news.
SEBI’s decision, communicated on March 7 and published in its processing status paper on March 15, has put a temporary halt to Diffusion Engineers’ IPO plans. The company intended to utilise the fresh issue proceeds to expand its existing manufacturing facility in Khasra and establish a new facility in Hingna, Nagpur. The remaining funds were earmarked for working capital requirements and general corporate purposes.
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Rays Power Infra Pulls Out of IPO Race
In a separate development, Rays Power Infra, a Gurugram-based company providing turnkey solar engineering, procurement, and construction (EPC) services in the renewable energy segment, withdrew its DRHP filed on December 29, 2023. The company had initially planned to raise funds through a combination of a fresh issue of ₹300 crore worth of shares and an offer-for-sale of 29.95 lakh equity shares by its promoters.
There has been a downturn seen in green energy stocks. Suzlon Energy shares closed at around 26 per cent, down from their 52-week high of ₹50.6 per share, whereas Inox Wind shares were around 30 per cent down from their one-year high of ₹ 648 per share.
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SEBI’s Radar
Meanwhile, SEBI Chairperson Madhabi Puri Buch had raised concerns earlier this month over the possibility of price manipulation in the IPOs of small and medium enterprises (SMEs) and trading in such shares.
Additionally, Buch had pledged in December 2023 to address the issue of inflated valuations in IPOs as several companies flood the market with their share sales.
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The Nifty Midcap 100 index declined over 8 per cent to below 46,000 levels after touching highs of 49,780.65. Meanwhile, the Nifty Smallcap 100 index has slipped over 10 per cent from a high of 16,691.60 to around 14776 levels currently.
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Published: 20 Mar 2024, 07:38 AM IST
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