Lavasa IPO Under Scrutiny of the Regulator
Observation orders have been issued by The Securities and Exchange Board of India or Sebi on initial public offering or IPO or Lavasa Corporations. This has signified the debacle of the regulatory course before IPO.
As stated by a company official, Lavasa can now smartly say yes to the IPO and they are happy to go forward with it. They are presently waiting for the green signal of the merchant bankers. Leading banks such as ICICI Securities, Kotak Investment Banking and Axis Capital deals with the business terms of Lavasa. The documents featuring draft offers had been already filed on July 1, 2014 by Sebi.
The company is scheming of issuing an IPO of Rs 750 crore just like the Rs. 2000 crore IPO announced in 2010. But somehow the plans had to be called off as the market situations were not favorable at that time.
A previous report in an esteemed daily had remarked that the values were basically lower at the moment. The company had decided to let go 10% stake for just Rs. 2,000 crore but this time the company has planned to dilute about 15% of it for Rs. 750 crore. The major portion of the company’s stake is with the HCC real Estate. It is the foremost business of Hindusthan Construction Company by Ajit Gulabchand.
This is what the draft Red Herring Prospectus stated. The company has a stake of 68.7 % in Lavasa while 17.18 % stake is with Avantha Group of Gautam Thapar. An investor from Pune, Vijay Maniar holds 6.295 while Venkateshwara Hatcheries holds about 7.81% of its stake.
The IPO attempt of 2010 had led the company to face severe controversy. The company is planning to have a planned hill city in India but they had to deal with a cause notice from the environment and forest ministry in November 2010 as their project was eventually violating the Environment Impact Assessment Notification.
Another Public Interest Litigation has been filed against Lavasa as the company had invested into a land of 10,000 acres, violating the regulations.
Source: Business Standard
Environment Impact Assessment Notification, HCC real Estate, Hindusthan Construction Company, ICICI Securities, Kotak Investment Banking, Lavasa, Lavasa Corporations, Public Interest Litigation, Securities and Exchange Board of India
