Sebi keeps RBL's IPO in abeyance due to past violation

NEW DELHI: Capital markets watchdog Sebi has kept processing of RBL Bank's proposed IPO in abeyance due to "past violation" committed by the company.

RBL Bank had filed draft papers with Sebi in June last year, seeking approval to float its IPO.

The IPO proposes fresh issue of equity shares worth Rs 1,100 crore and offer for sale of up to 17,568,408 scrips by existing shareholders, including Beacon India Private Equity Fund and GPE (India) Ltd.

Without disclosing the nature of violation, Securities and Exchange Board of India (Sebi) said it has kept the processing of IPO "in abeyance due to past violation by the company", as per the latest update as on January 29, 2016.

Last week, Sebi had said that it is examining the past violations committed by RBL Bank (formerly know as Ratnakar Bank Ltd).

The company proposed to use the proceeds of the IPO to shore-up the equity capital base, to meet future capital requirements and to ensure compliance with Basel III and other guidelines of the Reserve Bank.

Meanwhile, Sebi has sought clarification from merchant bankers of Ujjivan Financial Services and SP Apparels regarding their proposed initial public offerings (IPOs).

Without disclosing the details of clarifications sought, Sebi said it is awaiting response from 'Lead Managers' for these proposed public offers.

In December last year, Ujjivan Financial Services, the microfinance lender that was granted licence to convert into a small finance bank, filed draft papers with markets watchdog Sebi to raise at least Rs 650 crore through an IPO.

In the same month, Coimbatore-based SP Apparels filed draft papers with the regulator to raise at least Rs 215 crore through its IPO.

Ujjivan Financial Services, in September 2015, received in-principle approval from the Reserve Bank to set up small finance banks to provide basic banking services to small farmers and micro industries.

Ujjivan's IPO comprises fresh issue of equity shares worth Rs 650 crore and an offer for sale up to 34,95,626 scrips to the existing shareholders.

Besides, the company is considering a Pre-IPO Placement of up to 22,000,000 equity shares for cash consideration up to Rs 450 crore.

SP Apparels, on the other side, intends to garner up to Rs 215 crore through fresh issue of shares, while its existing shareholders will offload 9,00,000 equity shares, as per the Draft Red Herring Prospectus (DRHP) filed with Sebi.