Capital markets regulator Sebi has returned the draft IPO papers of non-banking financial company Akme Fintrade (India) Ltd, a move that might delay the company’s initial share sale. The proposed initial public offer (IPO) comprised fresh issuance of 1.1 crore equity shares with no offer for sale (OFS) component.
Proceeds of the issue are proposed to be used to augment the capital base of the company. The company filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) on February 16. According to an update on Sebi’s website on Tuesday, the market regulator returned the company’s DRHP on April 27 without providing reasons for the same.
Recently, Sebi has turned cautious while giving clearance to the initial share sales as it returned the preliminary papers of at least half a dozen companies, including Oravel Stays, which operates the hospitality chain OYO, so far this year.