India's markets regulator, the Securities and Exchange Board of India (SEBI), has approved the initial public offering (IPO) plans of two companies — Intellius Recode and Nityas Gems & Jewellery — clearing the way for both firms to tap the primary market. The approvals come amid a busy period for India's IPO market, which has seen sustained activity across both mainboard and SME segments driven by domestic liquidity and retail investor participation.

Intellius Recode to Raise Rs 117 Crore

Intellius Recode plans to raise approximately Rs 117 crore through its public offering. According to the company's draft papers, the proceeds will be directed toward the development of AI-led digital workers, reflecting the growing intersection of artificial intelligence and enterprise software in India's technology sector. The use of IPO proceeds for AI-focused product development places Intellius Recode among a growing set of Indian technology firms seeking public capital to build enterprise automation and AI-agent capabilities, areas that have drawn increased investor attention globally.

Nityas Gems & Jewellery to Fund Working Capital and Expansion

Nityas Gems & Jewellery will use the proceeds from its fresh issue to fund working capital requirements and support broader business expansion initiatives. The jewellery sector has been an active segment of India's IPO market, with several companies seeking public listings to capitalize on domestic demand. India is one of the world's largest markets for gems and jewellery, and jewellers have increasingly turned to the capital markets to fund inventory, expand retail networks, and build brand presence.

SEBI's Role in the IPO Process

SEBI serves as India's capital markets regulator and is responsible for approving draft red herring prospectuses (DRHPs) before companies can launch public offerings. Once SEBI issues its observation letter — typically the final regulatory nod — companies proceed to announce IPO dates, price bands, and lot sizes. The approval process involves a review of financial disclosures, risk factors, and use of proceeds to ensure investor protection.

Source: Economic Times Markets