Capital market regulator the Securities and Exchange Board of India (SEBI) has sought additional clarifications from IPO lead managers of RBL Bank, TeamLease Services and Dr Lal Pathlabs Limited. In its weekly update, the regulator did not indicate what disclosures it is seeking.
The initial public offer (IPO) of RBL Bank is to be managed by Kotak Mahindra Capital, Axis Capital, Citigroup, Morgan Stanley, HDFC Bank, ICICI Securities, IDFC Securities, IIFL Holdings and SBI Capital Markets. For TeamLease IDFC Securities, Credit Suisse Securities (India) and ICICI Securities are managing. Kotak Mahindra Capital and Citigroup Global Markets India are lead managers for Dr Lal Pathlabs offer.
SEBI had demanded clarifications from the Mumbai-based RBL Bank before as well. The bank, earlier known as the Ratnakar Bank, plans to raise INR11 billion through the IPO which has been delayed till now. According to the draft prospectus, Beacon India Private Equity Fund plans to sell its entire holding of 9.5 million shares in RBL Bank. The delay, though long since the company filed its prospectus in June, has been account of improper share issuances which were against prevalent regulations.
TeamLease Services is expecting to raise INR4.5 – 5 billion via the IPO. Private investors including Gaja Capital and India Advantage Fund plan to sell their share in the staffing company.
On the other hand, Dr Lal Pathlabs is expected to mobilize INR7 billion through its maiden public offer. Unlike the other two, the IPO of Dr Lal Pathlabs will constitute of an offer for sale (OFS) only and thus, no proceeds will go to the Gurgaon-based company. Dr Lal Pathlabs’ OFS includes 14.1% of its equity capital. Promoters Dr Arvind Lal will be offering 1.26 million shares while Dr Vandana Lal will be putting up 2.05 million shares.
The great Indian IPO story
India’s IPO market has seen an upward trend this year as compared to previous years. With over 15 IPOs so far this year, more are still in the pipeline including INR11.5-billion Coffee Day Enterprises Limited IPO and INR25-billion InterGlobe Aviation IPO. The 15 IPOs have raised INR63.5 billion this year which is far better than the INR14.79 billion in 2014. Companies like GNA Axles, Narayana Hrudayalaya, Quick Heal, GVR Infraprojects, Parag Milk Foods and Sandhar Technologies have filed their prospectus with the regulator.