Lodha Developers IPO hits Sebi hurdle
The Initial Public Offering (IPO) of India's largest realtor Lodha Developers Ltd has been put on hold by markets regulator Securities and Exchange Board of India (Sebi) due to “past violations”. As per the Draft Red Herring Prospectus (DRHP) filed by Lodha Developers on April 26, there is only one case pending with Sebi wherein an appeal was filed by the company. On June 22, Sebi in its weekly report on the processing status of DRHPs stated that the issue has been “kept in abeyance for examination of past violations.” In 2003, Roselabs Finance Ltd, in a transaction, had allegedly violated certain provisions of the market regulator with respect to the transfer of shares. Later, the finance company was acquired by Lodha Group. The next round of review by Sebi will be completed and the processing status is likely to be updated on Friday. The developer is looking to raise anywhere between Rs 5,000 to Rs 5,350 crore during the current calendar year.
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