Market regulator Sebi has sought clarifications from the merchant banker of Great Eastern Energy Corp, a coal-bed methane explorer, regarding the company's proposed initial public offering (IPO).
Without disclosing the details of the clarifications sought, the Securities and Exchange Board of India (Sebi) has said that "clarifications (are) awaited from Lead Manager" for the proposed public offer. As per the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications were awaited on the IPO of Great Eastern Energy as on November 29, 2013.
Also read: Sebi issues revised format on assets & liabilities for cos The status is updated on a weekly basis by the regulator and the next update of the status as on December 6, 2013, would be uploaded on the Sebi website on the next working day.
Sebi said it might issue observations on Great Eastern Energy's draft offer document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought from them.
The regulator had received the draft offer documents on September 17 through its lead manager ICICI Securities Ltd. The company plans to come with a public issue of up to 82 lakh equity shares of face value of Rs 10 each.
The proposed issue comprises of fresh issue to the public of 78 lakh shares and an offer for sale of up to 4 lakh shares by YKM Holdings International. Earlier in December 2008 as well, the company had filed papers with Sebi to raise funds through IPO, but could not take place. The company was expecting to mop up Rs 400 crore through the public issue.
Deutsche Bank Trust Company Americas has 61.99 percent stake in Great Eastern Energy, while YKM Holdings Pvt Ltd and YKM Holdings International Ltd have 26.34 percent and 10.53 percent holding, respectively in the company.
The London-listed company produces natural gas from coal seams, commonly known as coal bed methane (CBM), in India. It focuses on the exploration, development, production, distribution and sale of CBM.
The company plans to use proceeds garnered from the fresh issue for drilling and completion of CBM wells in the Raniganj (South) block and for general corporate purposes.
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