Sebi seeks clarification on Godrej Properties' rights issue

Clarifications were awaited on the proposed rights issue of Godrej Properties as on July 5, 2013: Sebi

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

Without disclosing the details of the clarifications sought, the Securities and Exchange Board of India (Sebi) has said that "clarifications (are) awaited from lead manager" for the proposed rights issue.

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

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 rights issue of Godrej Properties as on July 5, 2013.

The status is updated on a weekly basis by the regulator and the next update of the status as on July 12 2013 would be uploaded on the Sebi website 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 Kotak Mahindra Capital Company Ltd. The company's proposed rights issue is estimated to raise up to Rs 700 crore.

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