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FirstMeridian Business, IRM Energy, Lohia Corp Get SEBI Nod To Float IPOs

These firms, which filed their preliminary IPO papers with SEBI between Sept. 2022 and Jan. 2023, obtained the observation letters during Feb. 21-24.
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Three companies -- FirstMeridian Business Services Ltd., IRM Energy Ltd. and Lohia Corp. -- have received the capital markets regulator's go-ahead to raise funds through initial public offerings.

These firms, which filed their preliminary IPO papers with SEBI between Sept. 2022 and Jan. 2023, obtained the observation letters during Feb. 21-24, an update with the Securities and Exchange Board of India showed on Tuesday.

In SEBI parlance, observation implies go-ahead to the company to float the initial share-sale.

Going by the draft papers, staffing firm FirstMeridian Business Services Ltd.'s Rs 740-crore IPO comprises fresh issuance of equity shares worth Rs 50 crore and an offer-for-sale of Rs 690 crore.

As a part of the OFS, FirstMeridian Business Services' promoter Manpower Solutions Ltd. will sell shares worth Rs 615 crore, while existing shareholders New Lane Trading LLP and Seedthree Trading LLP would sell shares worth Rs 42.5 crore and Rs 32.5 crore, respectively.

It plans to utilise the net proceeds from the fresh issue towards the payment of debt and general corporate purposes.

The IPO of city gas distribution company IRM Energy is a fresh issue of up to 1.01 crore equity shares by existing shareholders, according to the draft red herring prospectus.

Proceeds from the issue will be used to fund capital expenditure requirements for development of the city gas distribution network at Namakkal and Tiruchirapalli in Tamil Nadu, for payment of debt and other general corporate purposes.

According to merchant banking sources, the company is expected to fetch Rs 650-700 crore through the IPO.

IRM Energy provides piped natural gas (PNG) and compressed natural gas (CNG). It has operations in states including Gujarat, Punjab and Tamil Nadu.

The initial share-sale of Lohia Corp, manufacturer of machinery used in the production of technical textiles, is entirely an OFS of 3.17 crore equity shares by promoters and other shareholders, draft documents showed.

As of Mar. 31, 2022, the company had a customer base comprising over 2,000 customers in over 90 countries globally. Kanpur-based Lohia Corp is the manufacturer of machinery and equipment used in the production of technical textiles, in particular for manufacturing polypropylene and high-density polyethylene woven fabric and sacks.

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

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