Sebi seeks clarifications on Lavasa IPO
The real estate arm of Hindustan Construction Co. Ltd proposes to raise `750 crore to fund the firm's growth
Mumbai: Market regulator Securities and exchange board of India (Sebi) has sought clarifications on the proposed ₹ 750 crore initial public offer (IPO) of Lavasa Corp. Ltd, the real estate arm of Hindustan Construction Co. Ltd (HCC).
“The regulator has asked routine questions on the financials of the company, mainly on the reported numbers, and the lead banker will respond to the same in a week’s time," said a banker involved in the IPO process.
Axis Capital is the lead banker to the issue. Kotak Mahindra Capital and Edelweiss Financial Services Ltd are the other managers.
The company did not respond to queries on the development.
“It is a routine check," said a senior executive familiar with the development.
On Tuesday, Press Trust of India (PTI) first reported that Sebi had sought clarifications from the bankers to the Lavasa Corp.’s IPO.
Sebi might issue observations on Lavasa’s IPO document within 30 days from the date of receipt of a satisfactory reply from the lead merchant bankers to the clarification, said the PTI report.
As per the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications were awaited on the proposed IPO of Lavasa as on 8 August 2014.
The status is updated on a weekly basis by the regulator and the next update of the status as on 15 August 2014 will be uploaded on the Sebi’s website the next working day.
Lavasa is looking to raise ₹ 700-800 crore via its IPO and filed a draft red herring prospectus on 1 July with Sebi. In 2010, Lavasa had a plan to raise ₹ 2,000 crore by selling 10% of promoters’ stake, which was abandoned due to poor market sentiment.
The proceeds from the proposed IPO will be used to fund the company’s growth. HCC owns 68.72% stake in Lavasa.
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