Companies are postponing IPOs rather than resizing them, as valuation expectations clash with current market conditions. Despite SEBI’s allowance to reduce IPO sizes, firms are hesitant to do so, fearing it signals weak demand. Many prefer to wait for improved market conditions to maintain favourable valuations and investor perceptions. “Currently, we do not anticipate issuers to substantially alter their IPO size,” said Sourav Modi, Partner, JSA Advocates & Solicitors. “The macroeconomic conditions coupled with the valuation expectations of the issuers and investors not aligning in current market conditions makes it more challenging to approach the market through IPOs.” Read more
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