India’s initial public offering (IPO) market is expected to continue its strong momentum with the regulatory approval of draft papers for three more firms.

The companies that got a node from the Securities Exchange Board of India (SEBI) were API Holdings Ltd, the parent of online pharmacy PharmEasy, CMR Green Technologies Ltd and Wellness Forever Medicare Ltd.

Also Read | LIC IPO: Chairman MR Kumar says company is ‘well capitalised’

In November 2021, API Holdings filed its draft papers (DRHP) with SEBI to raise Rs 6,250 crore via an IPO route. The proceeds from the public issue will be used to repay debt, fund organic and inorganic growth opportunities with acquisitions and strategic initiatives. The founder and investors will not dilute their stakes in the IPO.

According to a report by MoneyControl, API Holdings is also looking at the option of a pre-IPO fundraise via private placement to the tune of Rs 1,250 crore. If the pre-IPO round is successful, it will reduce the IPO issue size, the DRHP said.

Also Read | Federal Bank arm FedFina files DRHP with SEBI for IPO

CMR Green Technologies filed draft papers with SEBI in September 2021. It is one of the leading metal recyclers in the domestic aluminium recycling industry. The IPO comprises a fresh issue of Rs 300 crore and an OFS of up to 33.41 million shares by existing promoters and shareholders. Proceeds from the fresh issue will be used for the payment of debt and general corporate purposes, as per the MoneyControl .

Also Read | LIC set to launch $8 billion IPO on March 11: Report

Wellness Forever Medicare Ltd, a pharmacy chain backed by Adar Poonawalla, filed its draft prospectus in October 2021. The IPO comprises a fresh issue of Rs 400 crore and an offer for sale (OFS) of up to 16.04 million shares from existing shareholders and promoters. Serum Institute of India (SII), a leading shareholder will sell most of its shares, reported MoneyControl.

Also Read | Sebi proposes to tighten IPO pricing rules for new-age tech companies

Wellness Forever was founded by Ashraf Biran, Gulshan Bakhtiani and Mohan Chavan in 2008. Biran and Bakhtiani are selling up to 720,000 shares each, while Chavan is selling around 1.2 million shares.

At present, SII holds a 13.2% stake in the business and it will sell up to 3.55 million shares in the upcoming IPO. Poonawalla will also sell up to 1.52 million shares through his company Rising Sun Holdings.

Also Read | Companies ask SEBI to reverse complicated related-party rule

After the issue, SII will only own 40,000 shares of Wellness Forever. The funds raised from the IPO will be utilized for repayment of the debt, setting up new stores, capital expenditure and funding working capital.