John Energy, backed by ace investor Rakesh Jhunjhunwala, has received Indian markets regulator SEBI's (Securities and Exchange Board of India) permission to raise an estimated Rs 350 crore through an initial public offering (IPO).
In February, the company had filed draft papers with SEBI and obtained its "observations" on August 27. Sebi's observations are necessary for any company planning to launch public issue like an IPO and follow-on public offer (FPO).
As per the draft papers, John Energy's IPO comprises fresh issuance of shares worth Rs 218 crore and an offer for sale of up to 16,77,744 scrips by the existing shareholders, including IL&FS Financial Services and India Rig Company.
Proceeds of the IPO will go towards repayment of certain borrowings availed by the company and for general corporate purposes.
According to PTI, the initial share-sale is expected to fetch Rs 350 crore. Established in 1987, John Energy caters to the upstream and midstream oil and gas industry.
Jhunjhunwala has 18.21 percent stake in the company, while ICICI Bank owns 4.47 percent holding in the firm. The company's issue will be managed by IDFC and Keynote Corporate Services. The equity shares are proposed to be listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
John Energy reported a consolidated revenue of Rs 582 crore in 2016-17, compared to Rs 565 crore in the previous year. It also posted a profit after tax of over Rs 71 crore in for the same year, against Rs 29 crore in 2015-16.
Inputs from PTI