Upcoming IPO 2023: After the failure of Paytm’s IPO, the market regulator Securities and Exchange Board of India (SEBI) is exercising caution while approving the Initial Public Offering (IPO). SEBI has returned the preliminary paper of six companies, including Oravel Stays Limited IPO, which operates hotel chain OYO (OYO IPO) in two months. These companies have been asked to re-file their Draft Red Herring Prospectus (DRHP) with some changes.
SEBI withdraws DRHP of many companies including OYO
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Apart from OYO, companies whose DRHPs have been returned by the market regulator include Go Digit General Insurance Ltd, a firm backed by Canada-based Fairfax Group, domestic mobile maker Lava International Ltd. Lava International), B2B payment and service provider Paymate India, Fincare Small Finance Bank India and integrated service company BVG India.
These companies expect to raise Rs 12,500 crore through IPO
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). These companies were together hoping to raise at least Rs 12,500 crore through the IPO.
SEBI’s tough stand after investors lost money in IPO
SEBI has become strict about public issues after investors lost money in some of the most popular IPOs. 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, Geojit Financial Services, said, “Investors suffered huge losses after the listing of new-age digital companies like 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.