Sebi seeks clarification from Dilip Buildcon on IPO plans

Capital markets regulator Sebi has sought clarification from merchant banker of infrastructure firm Dilip Buildcon regarding its initial public offering.
Without disclosing the details of clarifications sought, Sebi has said that it is awaiting response from Lead Manager for the proposed public offer.
According to the latest weekly update on the processing status of draft offer documents, Sebi has said clarifications were awaited on the company's IPO as on January 26, 2016.
The next update would be uploaded on Sebi's (Securities and Exchange Board of India) website on March 7.
Sebi said it might issue observations on draft offer documents within 30 days, after receiving satisfactory reply from the lead merchant banker regarding the clarification or additional information sought.

Dilip Buildcon filed its draft red herring prospectus (DRHP) with Sebi on February 1. The IPO comprises fresh issue of shares worth up to Rs 430 crore and offer for sale of 11.36 lakh shares held by its promoters -- Dilip Suryavanshi and Devendra Jain -- and private equity fund BanyanTree Growth Capital, as per draft papers.

The proceed of the issue will be used for repayment of loans to meet working capital requirements and for other corporate purposes.
This is the company's second attempt to hit the capital markets. Earlier, it had received approval from Sebi in June 2015, but the company decided to withdraw the DRHP in January and filed fresh papers. It, however, did not disclose the reasons for the withdrawal.

In March last year, the company had filed draft papers with the regulator in order to raise Rs 650 crore through an IPO.