SEBI Approves IPO Plans of 4 Companies: Over ₹1,400 Crore Expected to Be Raised

88
02 Jan 2026
5 min read

News Synopsis

The Securities and Exchange Board of India (SEBI) has cleared the IPO proposals of four companies across packaging, construction, tiles & bathware, and engineering sectors. Together, these firms plan to raise more than ₹1,400 crore from the primary market.

SEBI Approves IPOs of 4 Companies

SEBI gives regulatory green signal

SEBI Approved 4 Companies IPO: This is a significant development for the primary market. The capital market regulator SEBI has approved public issue plans of four companies. These firms include a packaging solutions provider, a construction company, and businesses linked to tiles and bathware. Together, they aim to raise over ₹1,400 crore through their IPOs.

According to SEBI records, these companies filed their draft papers between August and September, and received regulatory approval (observation) between December 15 and 26. In SEBI’s terminology, receiving “observation” is considered a green signal to launch an IPO.

Focus on New Manufacturing Unit

Knack Packaging IPO Structure

The IPO of Knack Packaging, a packaging solutions company, will comprise a fresh issue worth ₹475 crore and an Offer for Sale (OFS) of 70 lakh shares by promoters and an existing shareholder.

Out of the fresh issue proceeds, nearly ₹435 crore will be invested in setting up a new manufacturing unit in Borisana (Kadi), Mehsana district, Gujarat, while the remaining amount will be used for general corporate purposes.

Plan to Repay Debt

Shivalaya Construction IPO Details

The IPO of Shivalaya Construction, from the construction sector, will include a fresh issue of ₹450 crore along with an OFS of 2.48 crore shares by promoters.

The company plans to use about ₹340 crore from the fresh issue to repay existing debt, while the balance will go toward general corporate objectives.

Strengthening Tiles and Bathware Business

Varmora Granito Funding Use

Rajkot-based Varmora Granito plans to raise ₹400 crore through a fresh issue, along with an OFS of 5.24 crore shares by promoters and investor Kastura Investments.

A major portion of the proceeds will be used to repay loans of its subsidiaries — Covertek Ceramica, Varmora Sanitarywares, and Simola Tiles — while the rest will be allocated for general corporate needs.

Expansion Plans of an Engineering Company

Behari Lal Engineering IPO

The IPO of Behari Lal Engineering will consist of a fresh issue worth ₹110 crore and an OFS of 78.54 lakh shares by promoters and investor SG Tech Engineering.

Funds raised from the fresh issue will be used for capital expenditure, debt repayment, and general corporate purposes. The company, established in 1995 in Punjab, became a public limited company in 2024.

IPO Market Continues to Show Strong Momentum

Over the past few years, the IPO market has witnessed robust growth. In 2025, companies collectively raised nearly ₹1.76 lakh crore, significantly higher than the figures recorded in 2024 and 2023.

Strong domestic investor participation and a favorable economic environment have fueled this momentum. Many companies continue to file draft papers with SEBI, signaling sustained interest in public listings.

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