Polymer maker Sah Polymers and leading wine producer Sula Vineyards have received approval from capital markets regulator Sebi to raise funds through an IPO.

The two companies filed preliminary IPO documents with Sebi in April and July 2022 and obtained observations between October 31 and November 3, the regulator said on Monday. In Sebi’s words, the watchdog’s watch means it’s embarking on an initial stock offering.

According to the draft document, Sah Polymers’ initial public offering will be a new issue of 1,02,00,000 shares, excluding the tender offer.

The company proposes to use the net proceeds of the newly issued shares to manufacture a new flexible intermediate bulk container (FIBC) plant and expand capacity to fund working capital requirements for new projects and to pay certain debts.

The Udaipur-based company manufactures and sells polypropylene (PP), high-density polyethelyne (HDPE) bulk bags, woven bags, HDPE/PP woven fabrics and woven fabric polymer-based products.

According to the draft document, the initial share sale of Sula Vineyards is entirely an offer for sale (OFS) by promoters, investors and other shareholders, totalling 25,546,186 shares.

The issued shares of OFS are Rajeev Samant, the promoter, founder and CEO, and investors such as Cofintra, Haystack Investments Limited, Saama Capital III Ltd, SWIP Holdings Limited, Verlinvest S.A and Verlinvest France S.A. Sula Vineyards.

Sula Vineyards has been recognized as the market leader in red, white and sparkling wine varieties. Currently, it produces wines under 56 different labels under 13 different brands at four owned and two leased production facilities in Maharashtra and Karnataka.