The Securities and Exchange Board of India (Sebi) on Monday said it has put in abeyance the IPO approval process of no-frills carrier Go Airline (India) Ltd and Aditya Birla Sun Life AMC.
The notification on the regulator’s website did not specify any reason for putting these approvals on temporary hold; however, it said that it has issued some observations to the merchant bankers of these two issues, without specifying the particular observations.
Go Airlines plans to raise up to ₹3,600 crore through its proposed IPO, while Aditya Birla Sun Life AMC IPO will see existing investors sell part of their shareholding through an offer for sale.
GoAir, which has rebranded itself as Go First, plans to use the net proceeds of the IPO mainly to repay debt.
Of the ₹3,600 crore that Go Airlines hopes to raise, it plans to utilize ₹2,015.81 crore for payment and scheduled repayment of outstanding borrowings, ₹279.26 crore for replacement of letters of credit with cash deposits for securing lease rental payments and aircraft maintenance from leasing companies and ₹254.93 crore to repay dues to Indian Oil Corp. Ltd towards jet fuel purchases, Go Air said in the draft prospectus.
The Aditya Birla Sun Life AMC IPO comprises an offer for sale of up to 2.9 million shares held by Aditya Birla Capital and up to 36 million shares held by Sun Life (India) AMC Investments in Aditya Birla Sun Life AMC
Go Airlines had filed its draft red herring prospectus with the regulator on 15 May while Aditya Birla Sun Life AMC had filed its draft prospectus on 22 April.
Never miss a story! Stay connected and informed with Mint.
Download
our App Now!!