Wadia Group backed GoAir has run into rough weather with SEBI as the market regulator has put on hold the IPO pending enquiry against Bombay Dyeing Manufacturing Company Ltd and its promoters, the Wadias.
SEBI's website states it had sought clarifications from ICICI Securities, the lead banker for the pre-issue, on June 11. The issuance of observations on the airline’s draft red herring prospectus has been kept in abeyance, it said.
As per reports Bombay Dyeing and its promoters received a show cause notice from the regulator’s Corporation Finance Investigation Department (CFID) in the first week of June for alleged irregularities.
The Wadia-group owned airline was rebranded as Go First, filed papers last month to raise Rs 3,600 crore through an IPO.