Nirma Defers Bookbuilding Issue Launch

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Nirma Ltd has deferred the proposed book-building exercise for its public issue due to depressed market conditions. The book-building exercise, the first-ever for an equity public issue, was slated for launch on November 24. Sources close to the lead mangers said Nirma is now working out the issues timing.

The eagerly-awaited bookbuilding exercise has also been plagued by differences between the lead managers. Sources said Enam Financial Consultants, which was originally a joint lead manager, has pulled out of the issue. However, the sources clarified that this development was not linked to the issues delay.

JM Financial & Investment Consultancy Services will now be the lead manager to the book-running, while HSBC Capital Markets, Kotak Mahindra Capital Company and SBI Capital Markets Ltd will be joint lead managers to the issue.

Sources said Enam Financial disagreed with the other lead managers on the bidding process and allocation of the issue. JM Group chairman Nimesh Kam-pani was not available for comment. Vallabh Bhansali of Enam Financial was also not available.

Sources at JM Financial said the decision to launch the issue would be taken depending on the prevailing market conditions. The issue has been cleared for all technical purposes by Sebi.

Earlier, Sebi had insisted on detailed disclosure on certain issues from the lead book runner. Sources said all queries put forward by Sebi were answered.