Sebi seeks clarification on IPO plans of 5 companies
New Delhi: Securities and Exchange Board of India (Sebi) has sought clarification from as many as five companies, including Bandhan Bank and Indian Renewable Energy Development Agency (IREDA), regarding their proposed initial public offerings (IPO).
The other companies are Srei Equipment Finance, state-owned RITES Ltd and Mishra Dhatu Nigam Ltd (MIDHANI), as per the latest information with Sebi. Without disclosing details of clarifications sought, Sebi has said “clarifications (are) awaited from lead manager(s)” for the proposed public issues.
As per the latest weekly update of processing status of draft offer documents filed with it, Sebi has said that clarifications are awaited on the proposed IPOs of these five companies. The next update would be available on 12 February. Sebi said that it might issue observations on these companies’ document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought.
The observations from the regulator is necessary for any company to launch public offers. All the five companies had filed their respective draft papers with Sebi between November and January. The regulator had last received any communication from Srei Equipment Finance on 16 January, IREDA (19 January), Bandhan Bank (25 January), MIDHANI ( 29January) and RITES (2February). Bandhan Bank and IREDA have “sought extension to submit requisite information”.
In 2017, a total of 122 companies, including small and medium enterprises (SMEs), had tapped the IPO route to raise a as much Rs71,500 crore.