Zepto, Dhoot Transmission among 6 companies to secure Sebi's nod for IPO
What happened
Six companies received SEBI approval for IPOs during May 4-8, 2024. Quick commerce unicorn Zepto aims to raise Rs 11,000 crore, while Dhoot Transmission targets USD 250 million. Other approvals include Horizon Industrial Parks (Rs 2,600 crore), Surgiwear (Rs 740 crore), Crystal Crop Protection (Rs 600 crore fresh issue), and Hotel Polo Towers (Rs 300 crore fresh issue). Zepto and Dhoot used confidential pre-filing routes. All will list on BSE and NSE exchanges.
Why it matters
SEBI's batch approval of six IPOs reflects India's robust primary market activity, with diverse sectors from quick commerce to industrial parks seeking capital. Zepto's Rs 11,000 crore IPO would make it the largest quick commerce public offering, joining listed rivals Zomato and Swiggy. The confidential pre-filing route used by Zepto and Dhoot allows companies to receive SEBI feedback privately before public disclosure, streamlining the approval process for sensitive or high-profile listings. Horizon Industrial Parks' Blackstone backing and purely fresh issue structure indicates PE exits through public markets. The mix of fresh issues and offer-for-sale components across companies shows varied capital requirements - debt repayment (Horizon's Rs 2,250 crore for borrowings), expansion (Surgiwear's machinery purchase), and strategic growth (Crystal Crop's acquisitions). Hotel Polo Towers represents regional hospitality sector's capital market access. These approvals signal SEBI's efficient processing of applications filed between October 2023-February 2024, demonstrating regulatory momentum in India's IPO ecosystem during a favorable market environment.
Sebi proposes allowing online bond platforms to offer IFSCA-regulated products, tax-saving bonds
What happened
SEBI proposed expanding Online Bond Platform Providers (OBPPs) scope to offer IFSCA-regulated products and tax-saving bonds under Section 54EC of Income Tax Act. Currently restricted to domestic securities, platforms may access GIFT-IFSC products under FEMA compliance. Proposal includes 54EC bonds from REC, Power Finance Corporation, Indian Railways Finance Corporation offering capital gains tax exemptions. Compliance officer requirements align with stockbroker regulations. Public feedback deadline: May 26.
Why it matters
This proposal represents SEBI's strategic move to integrate domestic and international financial services. OBPPs currently operate in silos, unable to offer GIFT-IFSC products or tax-efficient bonds, limiting investor choices. The IFSCA integration allows platforms to bridge onshore-offshore investing within LRS limits, enhancing India's position as a financial hub. Tax-saving bonds under 54EC provide capital gains deferral but with mandatory lock-in periods and non-transferability constraints. The compliance officer flexibility addresses industry feedback about rigid company secretary requirements, aligning with standard stockbroker norms. This democratizes bond investing by bringing institutional-grade products to retail platforms while maintaining investor protection through mandatory disclosures and grievance redressal clarity. The move supports government's digital finance agenda and GIFT City development. However, platforms must navigate FEMA complexities and educate investors about lock-in risks. This expansion could significantly increase bond market participation, especially among tax-conscious retail investors seeking capital gains optimization.
