The regulatory approval for the initial public offering (IPO) of Lavasa Corporation is set to lapse for the second time in four years, reports a business daily.
SEBI’s approval for IPOs is valid for one year, and the approval for the Lavasa Corp IPO will expire on 6th November, according to the financial newspaper.
Lavasa is unlikely to refile the draft red herring prospectus (DRHP) with SEBI anytime soon, the paper quoted one investment banker as saying. The company wants to wait for 2-3 years as the IPO is unlikely to get subscribed at the current valuations, the banker told the daily.
Lavasa had initially filed its DRHP in September 2010 to raise ~INR 2,000 crore, for which it received SEBI's approval in November 2010. However, adverse market conditions forced the company to shelve its IPO plans.
The company again filed its DRHP in July 2014, this time to raise INR 750 crore, and received the SEBI nod in November 7, 2014.
As of 3rd November, there are 16 companies with valid SEBI approvals to launch their IPOs, according to Prime Database. The total estimated value of these 16 IPOs is more than INR 9,000 crore.
In addition, 18 companies have filed their draft prospectus with SEBI and are still awaiting the regulator's nod.