Sebi seeks clarification on Ortel Communications's IPO

Market regulator Sebi has sought clarification from the merchant banker of Ortel Communications regarding the company's proposed initial public offer (IPO).
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 public offer.
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 IPO of Ortel as on October 10, 2014.
The status is updated on a weekly basis by the regulator and the next update of the status till October 17 would be uploaded on the Sebi website on the next working day.

Sebi said it might issue observations on draft offer document of Ortel 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 on September 12 through its lead manager Kotak Mahindra Capital Company Limited.

Ortel, a regional cable television and broadband service provider, plans to enter capital markets with a public issue of up to 14,182,598 equity shares of face value of Rs 10 each.
The offering comprises a fresh issue to the public of 60 lakh shares and an offer for sale of up to 81.82 lakh shares by NSR - PE Mauritius LLC.

This is Ortel's second attempt to raise money through IPO. The company's earlier plan in 2013 to raise Rs 100 crore through the stock market did not take off.
The proceeds of the issue would be utilised for expansion of the company's network for providing video, data and telephony services and general corporate purpose.