Hindustan Construction (HCC) said on Friday it has received an "observation letter" from market regulator for its unit Lavasa Corporation's proposed Rs 2,000-crore initial public offering (IPO).
"The observation letter is an approval from Sebi," Group Chief Financial Officer Praveen Sood told Reuters, adding the market regulator has given the company permission to file the Red Herring Prospectus or the final papers for the IPO.
The company has to open the issue within 12 months from the receipt of the observation letter, he said.
The market regulator had made certain observations, which has to be rectified at the time of the filing RHP, Sood said, but did not provide the details.
On September 14, Lavasa, in which HCC holds 65% stake, had filed a draft prospectus for an IPO, joining a crowded pipeline of property firms looking to tap the equity market to fund growth.
Nearly two dozen Indian developers have announced plans for IPOs to raise a total of $6 billion since last year, although many of them are on hold as companies hope valuations to improve.
Lavasa, which is developing several hill townships near Pune, would use the IPO proceeds to develop infrastructure at the site, repay some debt and to buy additional land in Lavasa.