SEBI returns IPO documents of four companies including Vishal Mega Mart

IPO market update: The Securities and Exchange Board of India (SEBI) has returned the draft IPO documents of four companies, including retail giant Vishal Mega Mart, education-focused NBFC Avanse Financial Services, TPG Capital-backed Sai Life Sciences, and BMW Ventures, citing non-compliance with regulatory requirements.

According to an update from the regulator on Tuesday, SEBI returned the offer documents for "non-compliance with Regulation 7(1)(a) of SEBI ICDR Regulations, 2018," as of July 24, 2024. This regulation mandates that an issuer seeking to make an initial public offering (IPO) must apply to one or more stock exchanges for an in-principle approval for listing its securities and must designate one as the primary exchange.

Vishal Mega Mart submitted its draft papers confidentially to SEBI on July 12. Avanse Financial Services, which filed its draft papers in June, aimed to raise Rs 3,500 crore through its IPO, consisting of a fresh issue of equity shares worth Rs 1,000 crore and an offer for sale (OFS) of up to Rs 2,500 crore by existing shareholders. Avanse, promoted by Olive Vine Investment Ltd, an affiliate of Warburg Pincus, planned to use the proceeds to bolster its capital base.

Sai Life Sciences' proposed IPO included a fresh issue of equity shares worth Rs 800 crore and an OFS of 6.15 crore shares by promoter and investor shareholders, including Sai Quest Syn Pvt Ltd and TPG Asia VII SF Pte Ltd. The proceeds were intended for debt repayment and general corporate purposes.

BMW Ventures also had its IPO papers returned, which had been submitted on July 1. The return of these documents highlights the stringent regulatory requirements companies must meet to proceed with public offerings in India.

(With PTI inputs)