Sebi Puts Aditya Birla MF On Hold Along With GoAir
- ByStartupStory | June 29, 2021
Share market regulator Sebi puts Aditya Birla MF on hold along with GoAIr (now Go First). They have not assigned any specific reason for suspending the two IPO bound applications. They however have officially said that investigation is going on regarding these two entities but not against the company who has filed the offer documents with Sebi, and so there is occurring delay in receiving the clean chit for IPO clearance. Sebi has revealed the latest updates regarding teh offer documents presented by the two companies. They both have been filed for fundraising from the public, however it was shown that Sebi’s observations on the offer document by Aditya Birla MF was ‘kept in abeyance’. Even for withholding GoAir’s IPO a similar reason has been given by Sebi. They usually agree to fund raising plans in abeyance even if there is any regulatory investigation going on, against a company.
According to GoAir’s IPO document, Sebi is investigating it’s mother company Bombay Dyeing about financial irregularities and fraud relating to an issue of arrangement between Bombay Dyeing and SCAL services. The investigation started when Bombay Dyeing shareholders complained about financial irregularities. In may 2021, GoAir filed the draft document to Sebi to raise an estimated amount of RS 3,600 crore through fundraising, and got a red signal from Sebi. In case of Aditya Birla, MF, two of their sponsor – Aditya Birla Capital and the Indian Arm of Sun Life Group of Canada, planned to offer rs 3.9 crore shares of the company to reduce their combined stake by about 13.5 % Sebi is currently investigating a series of deals between Aditya Birla Finance, a group company of the entity that has appealed for an IPO, and the promoters of CG power, the Thapar FAmily. The deal dates back to 2016.
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