Sebi approves 6 IPOs including Mahanadi Coalfields, Veritas Finance and Sagar Defence. Check details

Capital markets regulator Sebi has given the go-ahead to six companies, including Coal India subsidiary Mahanadi Coalfields, Veritas Finance, Sagar Defence Engineering and Encube Ethicals, to launch their initial public offerings (IPOs), paving the way for a fresh round of public issues across the financial services, defence, pharmaceutical and jewellery sectors.

The other two companies that have received regulatory clearance are IFL Finance and Arjun Jewellers, according to Sebi's latest processing status of draft offer documents. The six companies filed their preliminary IPO papers between July and September 2026 and received the market regulator's observations between October 15 and November 4.

In Sebi's terminology, issuing observations on draft offer documents allows companies to proceed with their IPO plans. The companies will announce their issue dates, price bands and other details closer to their respective launches.

Mahanadi Coalfields IPO

Mahanadi Coalfields, a wholly owned subsidiary of state-run Coal India, plans to enter the stock market through an offer for sale (OFS) of up to 66.18 crore equity shares by its parent company. The proposed IPO will consist entirely of existing shares, meaning Mahanadi Coalfields will not receive any proceeds from the public issue.

The company filed its draft papers on September 3, with SBI Capital Markets serving as the lead manager. Mahanadi Coalfields, incorporated in 1992, is one of India's major coal producers, operating primarily in Odisha.

The company produced 218.31 million tonnes of coal during FY26, accounting for approximately 22.4% of India's non-coking coal production, according to industry data cited in its draft prospectus.

The listing is expected to provide investors with direct exposure to one of Coal India's major operating subsidiaries.

Sagar Defence Engineering IPO

Defence technology company Sagar Defence Engineering has received Sebi's approval for its proposed IPO, which is estimated to be worth around Rs 3,000 crore. The company submitted its preliminary documents on August 6 through Sebi's confidential pre-filing route, with JM Financial acting as the coordinating lead manager.

The regulator issued its observations on November 4. Sagar Defence develops advanced defence and aerospace technologies, including unmanned systems and autonomous platforms.

The proposed listing comes amid growing investor interest in India's defence manufacturing sector, supported by government initiatives to encourage domestic production and reduce dependence on imported military equipment.

As the company opted for confidential pre-filing, the final issue structure and detailed offer terms will become clearer when it publishes its updated offer documents.

Encube Ethicals IPO

Specialty pharmaceutical company Encube Ethicals has received Sebi's clearance for its proposed Rs 3,000 crore IPO.
The public issue will consist entirely of an offer for sale by promoter Mehul Madhusudan Shah and existing shareholder Frontier Investment Holdings, which is backed by private equity firm Quadria Capital.

Shah plans to sell shares worth up to Rs 2,000 crore, while Frontier Investment Holdings intends to offload shares worth Rs 1,000 crore.

Since the offering consists entirely of existing shares, Encube Ethicals will not receive any proceeds from the IPO.

The Mumbai-based company operates in pharmaceutical formulations, global generics and contract development and manufacturing services. It has manufacturing facilities in Goa and Indore.

For FY26, Encube Ethicals reported a 75% rise in net profit to Rs 436.7 crore, while revenue increased 34.7% to Rs 1,848.7 crore.

Veritas Finance IPO

Chennai-based non-banking financial company Veritas Finance plans to raise Rs 900 crore through a fresh issue of shares, alongside an offer for sale of up to 1.28 crore equity shares by existing shareholders. The company, backed by Norwest Venture Partners and Kedaara Capital, filed its revised draft papers in July and received Sebi's observations on October 19.

The proposed IPO marks Veritas Finance's second attempt at entering the stock market. It had earlier received regulatory clearance in April 2025 for a Rs 2,800 crore IPO, comprising a Rs 600 crore fresh issue and an OFS worth Rs 2,200 crore. However, the company did not proceed with the offering.

Under the revised plan, Veritas Finance may also undertake a pre-IPO placement of up to Rs 180 crore. If completed, the fresh issue size will be reduced accordingly.

The company intends to use the fresh issue proceeds to strengthen its capital base and support future lending requirements.

Veritas Finance primarily provides loans to micro, small and medium enterprises and self-employed individuals.
Its assets under management stood at Rs 9,134 crore as of March 2026, while its FY26 net profit was approximately Rs 330 crore.

ICICI Securities is the coordinating lead manager for the proposed issue.

IFL Finance IPO

Gold loan-focused non-banking financial company IFL Finance has received Sebi's clearance for its proposed IPO, comprising a fresh issue of up to 3.55 crore equity shares and an offer for sale of up to 30 lakh shares by existing shareholders.

The New Delhi-based lender filed its preliminary IPO documents on July 29 and received the regulator's observations on October 21. The company plans to use the fresh issue proceeds to strengthen its Tier-I capital base, meet future lending requirements and comply with capital adequacy norms.

Aryaman Financial Services is the coordinating lead manager for the issue.

Arjun Jewellers IPO

Arjun Jewellers has also secured Sebi's approval to launch its proposed Rs 200 crore IPO. The public issue will consist entirely of fresh equity shares, with no offer-for-sale component.

The company intends to use the proceeds primarily to meet additional working capital requirements, including the purchase of inventory for existing and proposed retail showrooms. A portion of the funds will also be used for general corporate purposes.

Arjun Jewellers submitted its draft papers on August 1, with Saffron Capital Advisors acting as the lead manager. Sebi issued its observations on November 4.