The Securities and Exchange Board of India’s (SEBI's) decision to keep Inox Clean Energy’s proposed Rs 10,000-crore initial public offering (IPO) in abeyance was on account of ongoing investigations involving parent INOXGFL group entities.

SEBI’s update on October 1 did not specify the reasons for the move, but sources said scrutiny around transactions through which the listed Inox Green Energy Services divested its shareholding in Inox Clean Energy and three subsidiaries drove the regulator’s action.

SEBI can keep observations in abeyance in specified circumstances involving investigations or inquiries into issuers, promoters, directors or group companies.

SEBI’s rules prescribe an initial 30-day abeyance for certain investigations, extendable by another 30 days in specified circumstances. The abeyance could be lifted after the initial 30-day period if the applicable regulatory conditions are met.

The proposed IPO comprises a Rs 8,000 crore fresh issue and a Rs 2,000 crore offer for sale by promoter Devansh Jain. Inox Clean Energy proposes to use Rs 6,000 crore of the fresh proceeds to repay debt.

Inox Clean Energy is promoted by the Vivek Jain-led INOXGFL Group, with his son, Devansh, serving as executive director. INOXGFL is separate from the similarly named INOX Group, which controls Inox Air Products and listed cryogenic-equipment manufacturer Inox India.

INOXGFL Group spans fluorochemicals, fluoropolymers, battery materials, wind and solar equipment manufacturing and renewable power generation.

Emails sent to Inox Clean Energy and SEBI had not elicited a response at the time of publications.