Genesis Colors gets SEBI nod for IPO

Genesis Colors Private Limited, which owns luxury brands like Satya Paul and Bwitch, has received an approval to raise an estimated Rs 650 crore through an initial public offering (IPO).

The company had filed its draft red herring prospectus (DRHP) with SEBI in September. The capital markets regulator on February 3 issued its final observations on the draft offer documents, which is necessary for any company to launch a public offer.

The IPO comprises fresh issue of shares worth Rs 380 crore and offer for sale up to 1,916,741 equity scrips by existing shareholders by Mayfield Fund, Henderson Private Equity and Innoven Capital, among others. The company is going to garner about Rs 650 crore. The IPO is being managed by ICICI Securities, Edelweiss Financial Services and Ambit.

Genesis Colors will utilise the funds raised through the issue for purchase of shares of the company's subsidiary Genesis luxury fashion from Splendor distributions and promoter Sanjay Kapoor to 94.42 per cent from 52.43 per cent. A part of the money will be used for other general corporate purpose.