Sebi keeps RBL Bank share sale pause

The Pak Banker - - COMPANIES/BOSS -

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.

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