• Source:PTI
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An update on Tuesday with the regulator revealed that Sebi has returned draft IPO documents of four firms, including supermarket giant Vishal Mega Mart, education-focused NBFC AVANSE Financial Services, and private equity giant TPG Capital-backed Sai Life Sciences.

Furthermore, BMW Ventures' offer documents were returned. Sebi received the initial public offering (IPO) papers of the firm on July 1st.

On July 24, 2024, the Securities and Exchange Board of India (SEBI) returned the offer documents of the four firms “for non-compliance with Rule 7(1)(a) of the SEBI ICDR Rules, 2018”.

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According to Rule 7(1) (a) of the SEBI ICDR Regulations, an issuer making an initial public offering must guarantee that it has applied to one or more stock exchanges to seek policy approval for listing of its designated securities on such stock exchange and choose one of them as the designated stock exchange.

Vishal Mega Mart took the confidential filing route on July 12th to file draft papers with the market regulator. AVANSE Financial Services filed draft papers in June to raise Rs 3,500 crore through an IPO. The proposed initial share sale included a fresh issue of equity shares of up to Rs 1,000 crore and an offer for sale (OFS) of up to Rs 2,500 crore by the selling shareholders, according to the draft red herring prospectus (DRHP).

The firm, which is promoted by Olive Vine Investment Ltd, an affiliate of private equity firm Warburg Pincus, proposed to use the funds to increase its capital base for future requirements.

According to draft papers, the proposed IPO of Sai Life Sciences consisted of a fresh issue of equity shares worth Rs 800 crore and an OFS of 6.15 crore shares by a promoter, investor shareholders, and other shareholders. Under the OFS, one of the promoter entities -- Sai Quest Sin Pvt Ltd -- and the investor shareholders -- TPG Asia VII SF Pvt Ltd, HBM Private Equity India -- were proposed to partially offload their respective stakes.

Of the IPO proceeds, Rs 600 crore was earlier supposed to be utilized for debt repayment and a portion for general corporate purposes.

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(With PTI's Input)