Sebi seeks fresh clarification on Lavasa’s Rs 750-cr IPO

Market regulator Sebi has sought fresh clarifications on the proposed Rs 750-crore initial public offer (IPO) of Lavasa Corporation, the realty arm of construction major HCC.

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

As per the latest weekly update to the processing status of draft offer documents filed with the Securities and Exchange Board of India (Sebi), regulator has said clarifications were awaited on the proposed IPO of Lavasa as on August 22, 2014.

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

Prior to that, Sebi had sought clarification from Lavasa's lead manager, Axis Capital Ltd, earlier this month. Last communication between the regulator and merchant banker took place on August 20 this year.

The regulator had received the draft offer documents on July 1 this year 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, which is developing a large township (hill city) in 10,000 hectares in 'Lavasa' near Pune, is making a second
attempt to raise money though IPO. This is the company's second effort to hit the capital market. In November 2010, Lavasa had got the Sebi clearance for an IPO to raise up to Rs 2,000 crore, but bad market conditions forced the company to scrap the plan.

The proceeds from the proposed IPO would be used to fund the company's growth.

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