Sebi seeks clarification from 5 companies on IPO plans

NEW DELHI: Capital markets regulator Sebi has sought clarification from merchant bankers of five firms including Amar Ujala Publications and Dilip Buildcon regarding their proposed initial public offers (IPOs).

The other companies from which Sebi has sought information are S H Kelkar and Company, Pennar Engineered Building Systems and Syngene International.

Without disclosing the details of clarifications sought, Sebi has said that it is 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 market regulator has said clarifications were awaited on the IPO of these five companies as on May 15, 2015.

The next update would be uploaded on Sebi's website on May 25.

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 regarding the clarification or additional information sought from them.

These five companies had filed draft offer document with Sebi between March and April this year.

Most of these companies plans to utilise IPO proceeds for business expansion plans and working capital requirements.

So far this year, as many as 10 companies, including Sadbhav Infrastructure Projects, Manpasand Beverages and UFO Moviez India have received Sebi's approval to launch their IPOs. Some of them have already hit the capital markets.