Sebi seeks clarification from firms on IPO plans

Capital markets regulator Sebi has sought clarifications from merchant bankers of four firms including IndiGo and Coffee Day Enterprises regarding their proposed initial public offers (IPOs).

The other firms from which Sebi has sought information are RBL Bank (formerly known as Ratnakar Bank) and global sim card provider Matrix Cellular (International) Services.

Without disclosing the details of clarifications sought, Securities and Exchange Board of India (Sebi) has said that it is awaiting response from 'Lead Managers' for the proposed public offers.

According to the latest weekly update on the processing status of draft offer documents filed with Sebi, the market regulator has said clarifications were awaited on the IPO of these four companies as on July 24, 2015.

The next update would be uploaded on Sebi's website on August 3.

The capital market watchdog said it might issue observations on draft offer documents within 30 days, after receiving satisfactory reply from the lead merchant bankers regarding the clarification or additional information sought from them.

All these companies had filed their respective draft offer document with Sebi in June this year.

The firms plans to utilise IPO proceeds for business expansion plans, working capital requirements and to pay off debt.

As per the draft papers, InterGlobe Aviation, which runs the country's biggest airline by market share under IndiGo brand, plans to raise an estimated Rs 2,500 crore.

Besides, Coffee Day Enterprises, which runs the country's biggest coffee chain Cafe Coffee day (CCD), aims to garner Rs 1,150 crore through its initial share-sale plan, while RBL Bank intends to raise at least Rs 1,100 crore through public offer.

Matrix Cellular's IPO comprises an offer for sale of 15,172,540 equity shares from its promoters and existing shareholders.

After a quiet 2014, IPO market is humming again as more than 30 companies have lined-up plans to raise funds totalling over Rs 20,000 crore through public offers.

The flurry of activities also come at a time when Sebi has announced a slew of fresh reforms in the IPO space, including halving the listing period to six days.

So far in 2015, eight companies have launched their IPOs and have collectively raised nearly 4,000 crore, while the public offer of biotechnology major Biocon's research arm Syngene International is currently underway.

In comparison, a total of six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,528 crore.