The Securities and Exchange Board of India (Sebi) has kept in “abeyance” the processing of Go Airlines draft papers for an initial public offering (IPO) worth Rs 3,600 crore. The company filed preliminary papers for an initial share sale worth Rs 3,600 crore in May. The proceeds will be mainly used by the company — which has announced rebranding itself as ‘’Go First’’ — to repay dues.

The “issuance of observations (has been) kept in abeyance”, according to Sebi’s latest update on processing status of Go Airlines’’ draft offer documents. The information was updated on June 25. The issuance of observations by Sebi implies its go-ahead for the IPO. Sebi usually gives its observations on IPO papers in 30 days. An airline spokesperson said, quoted by PTI as saying: “Go Air has received no communication from Sebi.”

If the Sebi feels there is a possible cause for investigation or investigation is already in progress but no show cause notice has been issued, Sebi can keep the matter in abeyance for 30 days, which can be extended by further 30 days or till conclusion of the investigation. If a show cause notice has been issued, Sebi can keep the process in abeyance for 90 days and by further 45 days or till conclusion of the proceedings. “The Sebi decision to put the processing of Go Airlines IPO papers in abeyance indicates that some clarification might have been sought,” said a market source. However, specific details about the reasons for Sebi keeping the issuance of observations in abeyance could not be immediately ascertained.