NEW DELHI: Mumbai-based Edelweiss Capital is coming out with an initial public offering (IPO) to raise about Rs 700 crore mainly to strengthen the operations of its unlisted securities arm ESL, which has faced several inquiries and fines from stock exchanges in the past.
The company proposes to issue 84 lakh shares in the price band of Rs 725-825 in the IPO that will open on November 15 and close on November 20, the investment banking firm said in a prospectus submitted to SEBI.
About Rs 378 crore of the proceeds will be used for upgrading the operations of the Edelweiss Securities Ltd (ESL), the prospectus says.
For its own operations, Edelweiss Capital proposes to invest Rs 57 crore from the IPO proceeds.
ESL, which will be the major beneficiary of the public issue, was on several occasions fined by the Bombay Stock Exchange, National Stock Exchange and Central Depository Services Ltd (CDSL).
"BSE, NSE and CDSL have imposed penalties in the past," the prospectus said, adding that NSE had imposed a total fine of Rs 26.3 lakh, BSE Rs 12.9 lakh and CDSL 26 penalty points.
RBI has "passed an order against our company for non-compliance with certain reporting requirements in the FEMA Regulations", Edelweiss says in the prospectus. The offences were compounded by the central bank after payment of a penalty of Rs 1.5 lakh by the company.
Even the OTCEI has imposed a fine of Rs 50,000 on ESL for "not taking prior approval for change in dominant shareholding on May, 2006."
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment