SEBI has kept HDFC Asset Management Company's proposed initial public offering in abeyance “for examination of past violations,” the latest update with the market regulator showed.
The Securities and Exchange Board of India, however, did not clarify further. The fund house had filed preliminary papers with SEBI in March, seeking approval to float an initial public offering.
HDFC AMC operates as a joint venture between Housing Development Finance Corporation and Standard Life Investments.
Going by the draft prospectus, the proposed IPO offers up to 2.54 crore equity shares of the fund house through an offer for sale of 85.92 lakh shares by HDFC and up to 1.68 crore shares by Standard Life Investments.
The offer comprises a net offer to public of up to 2.21 crore equity shares, a reservation of up to 3.20 lakh shares for purchase by eligible HDFC AMC employees. Besides, 24 lakh shares have been reserved for eligible HDFC shareholders.
Without disclosing the nature of violations, SEBI said it has kept the IPO papers “in abeyance for examination of past violations,” according to the latest update as on April 27.
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