Shrugging off the weakness in the overall markets, shares of Apeejay Surrendra Park Hotels rose more than 30 per cent during their trading debut on Monday. The stock ended at Rs 203.5, up Rs 48.5, or 31.3 per cent, over its issue price of Rs 155.
Anand Radhakrishnan appointed CEO of Sundaram AMC
Sundaram Asset Management Company (AMC) on Monday announced the appointment of Anand Radhakrishnan
as the Chief Executive Officer (CEO). Radhakrishnan, who was formerly the Chief Investment Officer (Equity) at Franklin Templeton India, will also take over as the Managing Director (MD) in July 2024 after the retirement of present MD Sunil Subramaniam. This is Radhakrishnan's second stint at the fund house. He was a fund manager at Sundaram between 1996 and 2004. The average assets under management of the fund house in the December quarter stood at Rs 51,240 crore.
Sebi ups scrutiny of IPO documents
Sebi ups scrutiny of IPO documents
The Securities and Exchange Board of India (Sebi) is increasing scrutiny of issue documents filed by companies going public, four sources said on Monday, amid a rise in initial public offerings (IPO) in the stock market. The surging market has prompted nearly 50 companies to launch public issues in 2023; eight issues have been completed so far this year and another 40 are waiting for clearance from the Sebi. “The regulator has returned at least six public offer documents, as Sebi observed firms are misleading in their reasons for fundraise,” said one of the four people cited above.
The regulator is particularly scrutinising what companies say they intend to use funds raised from the IPO for, these sources, directly familiar with the matter, said. The sources declined to be identified. Sebi did not respond to an email. According to Sebi, funds raised via IPOs can be used for capital expenditure, debt reduction, general corporate purposes, and acquisitions. If funds are used to reduce debt, promoters will have their shares locked in for 18 months.
However, if funds are being raised for capital expenditure, promoters have a three-year lock-in period.
'Promoters' is a regulatory classification in India that includes large shareholders who can influence company policy.
"By saying the company is using funds to retire debt, they (promoters) are circumventing the law and reducing the share lock-in period from three years to 18 months," the first person said.
An investment banker, who declined to be identified as discussions with the regulator are private, said SEBI has sought a detailed break-up of whether IPO proceeds are being used to retire debt taken for capital expenditure. "This is making disclosures fairly cumbersome," they added.
Earlier this month, India's market regulator said it was investigating three IPOs for allegedly inflating the number of subscriptions received. SEBI is working on measures to curtail such malpractices, chairperson Madhabi Puri Buch said.
IPO nod to Gopal Snacks, 2 others
The Securities and Exchange Board of India has approved public issues of Gopal Snacks, Dee Development Engineers, and SRM Contractors. The market regulator issued observation letters for the three IPOs last week. Namkeen maker Gopal Snacks’ IPO will be a Rs 650-crore offer for sale (OFS). The IPO of Dee Development Engineers comprises a fresh issue of shares for Rs 325 crore and an OFS of 7.9 million shares by the promoter. The IPO of SRM Contractors will only be a fresh issuance of 6.2 million shares.