SEBI seeks clarifications from Teamlease, Dr Lal Path on IPOs

New Delhi: SEBI has sought clarifications from merchant bankers of Teamlease and Dr Lal PathLabs in connection with their proposed initial share sale plans.

Without giving details, SEBI has said it's awaiting response from Lead Managers.

According to the latest weekly update, the market regulator has said that as of October 9, the clarifications were awaited from these two companies.

The next update will be uploaded on the SEBI website on October 19.

The market watchdog said it might issue observations on draft offer documents within 30 days after receiving a satisfactory reply from the lead merchant bankers or any additional information sought from them.

These two companies, which plan to utilise IPO proceeds for business expansion plans and working capital requirements, had filed draft offer documents with SEBI last month.

As per the Draft Red Herring Prospectus (DRHP), Teamlease's IPO comprises fresh issue of shares worth Rs 150 crore and an offer for sale of up to 32.2 lakh by existing shareholders.

The company is expected to raise Rs 450-500 crore.

In Dr Lal PathLabs' case, promoters and other existing shareholders will collectively sell 1.16 crore shares of the company amounting to 14.1 percent stake.

Since the beginning of 2015, as many as 37 companies have filed their draft documents with SEBI to float their IPOs. In the same period, the watchdog has given approval to 28 firms to launch their initial share sale plans, some of which were pending from the previous year.

In addition, 15 companies have launched their IPOs so far this year and have collectively raised over Rs 6,600 crore.

In comparison, six IPOs had hit the market in the all of 2014 and together garnered just Rs 1,261 crore while three firms had launched their public issues in 2013 to mobilise Rs 1,284 crore.