MM Auto Industries withdraws IPO application

Firm is the third to pull out of an IPO this year, the other two being Videocon D2H and CL Educate

MM Auto Industries Ltd has withdrawn its proposed initial public offer, making it the third entity to pull out of an IPO this year.

The Gurgaon-based company had filed draft offer documents with the Securities and Exchange Board of India (Sebi) for the proposed IPO in March. It was yet to receive Sebi's approval for the proposed public offer.

However, the company through its lead merchant banker Mefcom Capital Markets Limited withdrew the IPO application on April 18, as per the latest update available with Sebi.

Prior to MM Auto Industries, two firms -- Videocon D2H Ltd and CL Educate Ltd -- had cancelled their public offer plans this year.

MM Auto Industries had planned on issuing 5.3 million equity shares. It was to use the proceeds of the issue to expand manufacturing capacity of its plants and to meet long-term working capital requirements, general corporate purposes and public issue expenses.