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The Securities and Exchange Board of India (SEBI) has returned the draft prospectus of Vishal Mega Mart and Avanse Financial Services Ltd due to technical issues, according to sources familiar with the matter. The companies are expected to address these concerns and refile their documents as early as Monday.
Vishal Mega Mart, a prominent fashion-led hypermarket chain supported by Kedaara Capital and Partners Group, had submitted its draft prospectus under confidential filing two weeks ago. The company aims to raise nearly $1 billion in its initial public offering (IPO). The lead investment banks for the share sale include Kotak Mahindra Capital, Jefferies, JP Morgan, ICICI Securities, and Morgan Stanley.
Similarly, Avanse Financial Services Ltd, an Indian non-banking financial company (NBFC) focused on educational financing, filed its draft red herring prospectus (DRHP) on June 21 Supported by Warburg Pincus and notable investors such as the International Finance Corporation, Kedaara Capital, Mubadala Investment Company, and Avendus Future, Avanse Financial Services provides a diverse array of financial products, including student education loans and expansion capital for educational institutions.
The return of these prospectuses was attributed to technical queries rather than outright rejections, as confirmed by the sources. The companies are expected to make the necessary adjustments and refile their documents with SEBI to proceed with their IPO plans.
In a related update, SEBI has recently put the SK Finance IPO on hold. The capital markets regulator announced on July 8 that the issuance of observations for SK Finance’s IPO had been kept in abeyance. SK Finance, a Jaipur-based non-bank lender, had filed its preliminary papers in May, which included a fresh equity issue of Rs 500 crore and an offer for sale of up to Rs 1,700 crore.