New Delhi: Markets regulator Securities and Exchange Board of India (Sebi) has temporarily put on hold the initial public offer (IPO) application of GoAirlines Limited, which had earlier announced rebranding itself as ‘Go First’.
Sebi’s website showed that the IPO application submitted by GoAir has been “kept in abeyance”. As per existing norms, the market regulator is “obligated to keep issuance of observations in abeyance for a period of 30 days or 45 days or 90 days or more, as the case may be”.
The market regulator had earlier sought clarifications from the offer’s Lead Manager. The Coordinating Lead Manager (Pre-Issue) is ICICI Securities Limited.
Sebi has not shared any specific details regarding why it put the GoAir IPO on hold and the company did not issue any immediate comments on the matter.
It is a big blow to the airline’s plan to raise Rs 3,600 crore through the public issue of shares to repay existing debts and other operations.
The airline plans to pay over Rs 2,015.81 crore towards prepayment or scheduled repayment of all or a potion of certain outstanding borrowings, as per the Draft Red Herring Prospectus (DRHP) filed with Sebi in May.
An amount of Rs 279.26 crore would also be used for “replacement of letters of credit, which are issued to certain aircraft lessors towards securing lease rental payments and future maintenance of aircraft, with cash deposit”.
The airline also intends to repay dues of Rs 254.93 crore to Indian Oil Corporation Limited (IOCL) for fuel supplied to it.
The decision was taken by the market regulator due to a pending enquiry against Bombay Dyeing Manufacturing Company Ltd. and its promoters, the Wadias, reported moneycontrol.com.
It may be noted that the Wadia Group own a 73.33 per cent stake in the low-cost airline and the remaining shareholding is with other entities, including Baymanco Investments Limited. The latter holds a 21.05 per cent stake.
The report, quoting a person familiar with the matter, indicated that Bombay Dyeing and its promoters received a show-cause notice from the market regulator's Corporation Finance Investigation Department (CFID) in the first week of June for alleged irregularities.
29/06/21 India Today
0 comments:
Post a Comment