Sebi seeks fresh details on Godrej Properties rights issue

This is the second time in a month that Sebi has sought clarifications from the company through its merchant banker, Kotak Mahindra Capital Company Ltd

Market regulator Sebi has sought fresh clarification from Godrej Properties, the real estate arm of Godrej Group, regarding the company's proposed Rs 700 crore rights issue.

This is the second time in about a month that Sebi has sought clarifications from Godrej Properties through its merchant banker--Kotak Mahindra Capital Company Ltd--with regard to the proposed rights issue.

The banker had submitted its reply to Sebi after the latter sought clarifications last week, but the regulator has now sought fresh clarifications from it.

As per Securities and Exchange Board of India's (Sebi) latest weekly status update of pending open offers as on July 19, the "clarifications (are) awaited" from merchant banker for the proposed rights issue.

However, the regulator has not disclosed about the details of the clarifications sought for.

In rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio.

The status is updated on a weekly basis by the regulator and the next update of the status as on July 26, 2013 would be uploaded on Sebi Web site on the next working day.

Sebi said it might issue observations on Godrej Properties' document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought from them.

The regulator had received the draft offer documents of on June 5, 2013 through its lead manager. The company's proposed rights issue is estimated at Rs 700 crore.

The funds raised through the issue would be utilised for ongoing projects as well as new projects.