Sebi keeps RBL Bank share sale pause
RBL Bank Ltd's initial public offering (IPO) remains enmeshed in regulatory issues with the capital markets watchdog saying in its latest communication that the share sale had been "kept in abeyance due to past violation by the company".
RBL Bank applied to the Securities and Exchange Board of India (Sebi) on 25 June 2015, seeking to raise Rs.1,100 crore through an IPO. The lender is yet to receive clearance. In its weekly updates, Sebi has maintained that the IPO is under consideration and that past violations are being examined.
The latest status update by Sebi on Monday that the IPO was in abeyance does not mean the IPO application has been rejected, executives at the bank and investment bankers said.
"There is no material change or development in the matter in recent days. The IPO is certainly on based on an ongoing mutual discussion with Sebi on settling the matter. I am confident of an early resolution," said Vishwavir Ahuja, managing director and chief?executive officer, RBL Bank.
"Abeyance does not mean it has been rejected; it simply means the DRHP (draft red herring prospectus) continues to be on hold and the regulator will have to suggest a way to resolve this. The previous management had allotted shares to more than 1,000 investors and the existing management is trying to resolve the matter," an investment banker aware of the matter said on condition of anonymity.
In its DRHP filed with Sebi, RBL Bank disclosed that in the years 2003 and 2006, it issued shares to more than 200 subscribers. The previous board had allotted shares via rights issues to 2,591 investors on 19 February 2003.