SEBI’s tough approach in approving IPO, returned draft proposals of six companies
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SEBI has returned the prospectus of six companies, including Oravel Stages, which operates hotel chain OYO, in two months. These companies have been asked to re-file their prospectus (Red Herring Prospectus – DRHP) with certain modifications.
After the failure of Paytm’s IPO, market regulator SEBI is exercising caution while approving initial public offerings (IPOs). SEBI has returned the prospectus of six companies, including Oravel Stages, which operates hotel chain OYO, in two months. These companies have been asked to re-file their prospectus (Red Herring Prospectus – DRHP) with certain modifications.
Apart from Oyo, companies whose draft proposals have been returned by the regulator include Go Digit General Insurance Ltd, a Canada-based Fairfax Group-backed firm, domestic mobile maker Lava International, B2B (between companies) payments and services provider Paymate India, Fincare Small Finance Bank India and BVG India, an integrated services company. This information was obtained from the analysis of SEBI data. These six companies had filed IPO papers with SEBI between September 2021 and May 2022 and their papers were returned during January-March (by March 10).
Together these companies were hoping to raise at least Rs 12,500 crore. After investors lost money in some of the most talked about IPOs, SEBI has turned strict on issuances. According to data from primedatabase.com, the market regulator took an average of 115 days to approve IPOs in 2022. VK Vijayakumar, chief investment strategist at Geojit Financial Services, said investors suffered huge losses after the listing of new-age digital companies such as Paytm, Zomato and Nykaa. Due to this, SEBI has tightened the approval norms for IPOs. This is a welcome decision in the interest of investors.
Disclaimer:IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
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