Markets regulator Sebi has sought clarification from two companies-- UFO Moviez India and Manpasand Beverages-- regarding their proposed initial public offerings (IPOs).
UFO Moviez India, India's largest digital cinema distribution network and in-cinema advertising platform in terms of numbers of screens, plans to raise around Rs 750 crore through its proposed IPO, while fruit drinks maker aims to garner Rs 400 crore through its public offer.
Without disclosing the details of clarifications sought, Securities and Exchange Board of India (Sebi) has separately said that "clarifications (are) awaited from Lead Manager" of these two firms for the proposed public offers.
As per the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications are awaited on the proposed IPOs of UFO Moviez and Manpasand Beverages as on January 23, this year.
Sebi had received last communication from these companies on the issue on January 22.
The status is updated on a weekly basis by the regulator and the next update of the status as on January 30, this year, would be uploaded on Sebi Web site on the next working day.
Sebi said that it might issue observations on the respective documents of these two companies within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought from them.
The regulator had received draft document of UFO Moviez on December 8 through its merchant banker Axis Capital, while Sebi obtained initial papers of Manpasand Beverages on November 26 via its lead manager Kotak Mahindra Capital Company.
As per draft red herring prospectus (DRHP) filed with Sebi, UFO Moviez and Manpasand Beverages plans to mop-up Rs 750 crore and Rs 400 crore respectively through IPOs.
The selling shareholders in UFO Moviez's IPO include private equity investors such as 3i Research (Mauritius) Ltd, P5 Asia Holding Investments (Mauritius) Ltd (P5) and promoters selling their partial holdings in the company.
The funds raised from the proposed public offer of Manpasand Beverages would be utilised for setting-up of a manufacturing facility in Haryana/Punjab, modernisation of existing facilities in Vadodara and Varanasi, setting-up of a corporate office at Vadodara, repayment of loans and general corporate purpose.
