Silent listings? Why companies are going for confidential IPO filings

Rising tensions in West Asia are now beginning to reshape India’s IPO market, with more companies reportedly considering confidential filings for their stock market debut as uncertainty grips global financial markets. Investment bankers and legal experts have said that a growing number of IPO-bound firms are now exploring the confidential filing route with the Securities and Exchange Board of India (Sebi) instead of going through the traditional public filing process. “Given that there is a lot of business uncertainty arising from the West Asia crisis, this additional time is an important benefit for IPO bound companies,” Pracheta Bhattacharya, partner, JSA Advocates & Solicitors. “Additionally, companies in niche sectors or the technology-led businesses do not want to reveal confidential performance metrics at the DRHP stage, with limited deal certainty. For them, it’s making perfect sense to go for the confidential route,” he added. Read more