Stuck IPOs of RBL Bank,Thyrocare get relief

The Securities and Exchange Board of India (Sebi)’s recent decision to not penalise unlisted entities in breach of the public issue norms is a shot in the arm for the latter’s initial public offering (IPO) plans.

At least six companies, according to a source, were not able to proceed with their plans, having breached the investor cap prescribed in the erstwhile Companies its board meeting on November 30 clarified that such companies will avoid penal action if they provide investors an option to surrender their securities.

Sources said the IPO plans of diagnostics chain Thyrocare Technologies and private sector RBL Bank (former Ratnakar Bank) didn’t get the market regulator’s nod for this reason. Legal experts said Sebi’s latest clarification will help these two companies and five-odd others which have not been able to file their IPO documents.

“Sebi has come out with a pragmatic and good solution of not imposing any penalty if there is a refund of money to shareholders,” said Sudhir Bassi, executive director, Khaitan and Co, a leading law firm. “At least four-five companies which couldn’t file for IPOs due to this reason. Some of them will now come out with their IPOs.”-from BS

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