Sebi’s IPO size relaxation has few takers as valuations take priority

Sebi’s April concession allowing IPO-bound companies to cut fresh issue sizes by up to 50% without refiling documents has found few takers, as issuers treat valuation alignment as the only variable worth managing. “We have not seen issuers exploring this option as of now,” said Sourav Modi, partner at law firm JSA. “Indian markets have an appetite for deals which match their pricing expectations. We have seen big-ticket InvITs (Infrastructure Investment Trusts), Reits (Real Estate Investment Trusts) and IPOs being massively oversubscribed in the last four weeks, and none of them reduced their size by more than 20%,” he explained. Read more