New Delhi: Power Mech Projects Ltd has received approval of the Securities and Exchange Board of India (Sebi) to raise funds through initial public offering (IPO).
The company had filed the initial papers through its lead manager, Kotak Mahindra Capital Company Limited, in October last year.
Capital market regulator Sebi had issued final 'observations' on the draft offer document on March 9, which is necessary for companies to launch any public offer.
As per draft red herring prospectus (DRHP), the company plans to hit the capital markets with a public issue of up to 42.69 lakh equity shares of face value of Rs 10 each.
The offer comprises a fresh issue of 21.28 lakh equity shares and an offer for sale of 21.41 lakh equity shares.
The capital raised through the issue would be utilised towards repayment of loan, to support working capital requirements and for general corporate purposes.
Power Mech Projects is engaged in power, infrastructure and petrochemicals sectors.