Markets regulator Sebi has sought clarification from the merchant banker of microfinance institution Equitas Holding regarding the company's proposed initial public offering.
Without disclosing details, Sebi has said "clarifications (are) awaited from lead manager for the proposed public issue" as on November 13. The next update from the market watchdog on the issue would be available on November 23.
Sebi had received last communication from the merchant banker on November 10.
The regulator had received the draft offer documents in October this year through its lead manager Axis Capital.
The IPO comprises fresh issue of shares worth Rs 600 crore and an equal amount by selling shares to existing shareholders, according to sources.
The shareholders that have proposed to sell shares include International Finance Corporation (IFC), Sequoia Capital, Aavishkaar and Helion Capital.
The Chennai-based company is planning to garner Rs 300 crore by selling shares to institutional investors ahead of the IPO, as per the Draft Red Herring Prospectus.
This will be the second microfinance company to tap the primary markets after SKS Microfinance's maiden public offering in 2010 that raised Rs 1,654 crore.
Equitas, in September, received in-principle approval from the Reserve Bank to set up small finance banks to provide basic banking services to small farmers and micro industries.
