The regulator, in an ‘administrative warning’ to the five book-running lead managers Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities, accused them of neglecting proper disclosures in the draft red herring prospectus (DRHP) of EbixCash, said people aware of the development. Sebi has also cautioned these bankers to exercise ‘greater care’ to prevent the repetition of such occurrences.
Email queries sent to Sebi, EbixCash, Motilal Oswal Investment Advisors, Equirus Capital, ICICI Securities, SBI Capital Markets, and Yes Securities went unanswered until Wednesday press time.
In a regulatory disclosure, ICICI Securities said it received an ‘administrative warning’ from Sebi on September 4, 2023, regarding the proposed IPO of EbixCash.
“Sebi observed that ICICI Securities had failed to exercise due diligence in view of making disclosures,” the investment bank said.
The market regulator approved the EbixCash IPO after an extended period of nearly 13 months, which is significantly longer than the typical average processing time of 60-90 days. The average number of days taken for IPO approvals in 2021 was 75 compared to 82 days in 2020.
Noida-based EbixCash, a technology-enabled provider of digital products in the B2C and B2B space, filed its DRHP in March 2022 and received a market regulator nod in April 2023.According to reports, the company plans to raise between ₹6,000 crore and ₹8,000 crore through a public issue.
EbixCash is a leader in the international remittance business and has forex operations in nearly 20 international airports, including Delhi, Mumbai, Mumbai, Hyderabad, Chennai and Kolkata. EbixCash’s parent Ebix, a US-based tech company, is listed on the Nasdaq.
In July, the markets regulator pulled up investment banks for lack of appropriate disclosures in IPO documents. In an advisory issued to the Association of Investment Bankers of India (AIBI), Sebi said that it has noticed that offer documents are carrying limited disclosures with regards to non-consenting promoter group/group companies/associates.