Sebi seeks clarifications from 4 firms on IPO plans

Regulator says it may issue observations on draft offer documents within 30 days, after reply from merchant bankers

The Securities and Exchange Board of India (Sebi) has sought clarifications from merchant bankers of four firms, including Alkem Laboratories and Infibeam Incorporation, in connection with their proposed Initial Public Offers (IPOs).

Also, clarification has been sought regarding initial share sale plans of Bharat Wire Ropes and Health Care Global Enterprises.

Without getting into specifics, Sebi has said it's 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 regulator has said clarifications were awaited on the IPOs of these four companies as of August 28, 2015.

The next update would be uploaded on Sebi's website on September 7.

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.

Online shopping portal Infibeam filed its draft offer document with Sebi in June this year while the same for Bharat Wire Ropes and Health Care Global Enterprises were filed in July. Alkem Laboratories submitted its papers last month.

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

Drug maker Alkem Laboratories plans to raise an estimated Rs 1,500-3,500 crore through the IPO route, Infibeam Rs 450 crore and Bharat Wire Ropes Rs 70 crore.

As per the draft papers, the issue of Healthcare Global Enterprises (HCG), a cancer care network operator, consists of a public offer of up to 3.11 crore equity shares, a fresh issue of up to 1.16 crore shares and an offer for sale of up to 1.95 crore scrips by existing stakeholders.

Since the beginning of the year, some two dozen firms have already filed draft papers with Sebi, while some others, including GVK Airport, are in the process of filing papers.

So far in 2015, 13 firms have already hit the capital market, while IPOs of two companies are under way.

A total of six and three IPOs had hit the market in 2014 and 2013, respectively.