Afternoon Voice

SEBI keeps Lodha Developers’ IPO in abeyance over past violations

Regulator SEBI has kept realty major Lodha Developers’ Rs 5,500 crore proposed IPO in abeyance “for examination of past violations,” latest update with the markets watchdog showed.

However, the Securities and Exchange Board of India did not clarify further.

The company had filed preliminary papers with SEBI on April 26, seeking approval to float an initial public offering.

As per the draft papers filed with SEBI Property, the company plans to issue fresh shares worth Rs 3,750 crore, besides, an offer for sale of 1.8 crore shares by the promoters.

Also, it aims to raise about Rs 750 crore out of the proposed issue through a pre-IPO placement of 95 lakh fresh shares.

According to sources, the company is looking to raise about Rs 5,500 crore through IPO, including pre-placement of shares.

Privately-held Lodha Group is developing around 40 million sq ft area and has 31 ongoing projects in London, Mumbai Metropolitan Region, Pune, Bengaluru and Hyderabad. It has a land bank of 350 million sq ft for future development.

Earlier, the company had filed draft papers in September 2009 to raise about Rs 2,800 crore. It had received Sebi’s nod in January 2010, but later shelved its plan to launch the IPO due to bad market conditions post the global financial crisis.