Sebi seeks fresh clarification on Lavasa's Rs 750-crore IPO

The regulator has sought clarifications without disclosing the details

Market regulator Securities and Exchange Board of India (Sebi) has sought fresh clarifications on the proposed Rs 750-crore initial public offer (IPO) of Lavasa Corporation, the realty arm of construction major Hindustan Construction Company (HCC).

Without disclosing details of clarifications sought, Sebi has said "clarifications (are) awaited from lead manager" for the proposed public issue.

According to 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 IPO of Lavasa as on August 22.

Sebi said it might issue observations on Lavasa's IPO document within 30 days from the date of receipt of a satisfactory reply from the lead merchant bankers to the clarification or additional information sought.

Prior to that, Sebi had sought clarification from Lavasa's lead manager, Axis Capital Ltd, earlier this month.

The latest communication between regulator and merchant banker took place last Wednesday.

The regulator had received the draft offer documents on July 1 through its lead manager Axis Capital.

Lavasa has filed its draft red-herring prospectus with Sebi to go in for an IPO of its equity shares of Rs 10 each aggregating to Rs 750 crore.

Lavasa, developing a large township (hill city) in 10,000 hectares in 'Lavasa' near Pune, is making a second attempt to raise money though an IPO.

In November 2010, Lavasa had got Sebi clearance for an IPO to raise up to Rs 2,000 crore but bad market conditions forced the company to scrap the plan.

Proceeds from the proposed IPO would be used to fund growth.

The HCC group, which has 68.72 per cent stake in Lavasa, had said the proposed public issue is subject to receipt of requisite regulatory approvals, market conditions and other considerations.