IPOs Valuations

After the Paytm's IPO fiasco, Sebi has turned cautious while giving clearance to the initial share sales as it has returned the preliminary papers of half a dozen companies, including Oravel Stays, which operates hospitality chain OYO, in over two months. These companies have been asked to re-file their draft red herring prospectus (DRHP) with certain updates. Apart from OYO, the firms whose draft papers have been returned by the regulator are -- Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group; home-grown mobile maker Lava International; B2B payments and services provider Paymate India; Fincare Small Finance Bank India and integrated services company BVG India, according to an analysis of data with Sebi . The six companies had filed their preliminary initial public offering (IPO) papers with Sebi between September 2021 and May 2022 and their papers were returned during January-March (till March 10). Together, these companies were hoping to raise at least

Firms raised a total of Rs 36,535 cr in the period, 30.2% less than Rs 52,325 cr last yr

Inflation trajectory and the actions of global central banks, especially the US Fed will be keenly watched by market participants. In this backdrop, primary markets will remain in wait and watch mode

Will the market volatility see companies trim IPO size?

Volatility in the secondary market against the backdrop of US Fed rate hike and global crisis made IPOs of LIC and Delhivery trim their sizes. Will more companies follow suit in the choppy markets?

Profitability may 'remain elusive for a long time', says brokerage about digital payments company.

Laxmi Goldorna House Ltd, Nirmitee Robotics India Ltd, Billwin Industries Ltd and DJ Mediapoint & Logistics Ltd came out with their IPOs during the June quarter

Last month, Sebi decided to extend the validity by six-month for IPOs whose validity expire between March 1 and September 30.

After filing for an IPO, companies are allowed to revise their valuations by up to 20 per cent from initial expectations