Sebi Seeks Clarification From TeamLease, Others on IPO Plans

The Securities and Exchange Board of India (Sebi) has sought clarifications from merchant bankers of three firms - TeamLease Services, Parag Milk Foods and SSIPL Retail - regarding their proposed initial public offers (IPOs).
Without disclosing the details of clarifications sought, capital markets regulator 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 three companies as on November 20.

The next update would be uploaded on Sebi's website on November 30.

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.

Sebi has received last communication from Parag Milk Foods and SSIPL Retail on November 20, while the same for TeamLease Services was on November 17.

Staffing firm TeamLease Services and Parag Milk Foods had filed their respective draft offer document with Sebi in September this year, while the same for footwear manufacturer and retailer SSIPL Retail was filed in October.

According to draft papers, TeamLease Services' IPO comprises fresh issue of shares worth Rs 150 crore and an offer for sale of up to 32.2 lakh shares by existing shareholders.

The public issue of Parag Milk Foods consists of fresh issue of equity shares to the tune of Rs 325 crore and an offer for sale of up to over 1.98 crore equity shares.

SSIPL Retail is looking to raise Rs 72 crore by issuing fresh shares and an offer for sale of up to 19.88 lakh equities.

Since the beginning of 2015, as many as 40 companies have filed draft documents with Sebi to float IPOs. In the same period, the market watchdog gave approval to 31 firms to launch their initial share sale plans, some of which were pending since last year.

This year, 18 companies have so far launched IPOs and collectively raised nearly Rs 11,000 crore, making it the best in four years in terms of fund raising through initial share-sale programmes.

In comparison, six IPOs had hit the market in the entire 2014 and together garnered just Rs 1,261 crore, while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.

Source : NDTV