With Rs 300-bn IPOs yet to take off, Sebi pitches for correct pricing

The capital markets regulator Sebi on Tuesday voiced concern over the slow pace of primary issues despite a good market condition, and asked investment bankers to do more diligence on the pricing front to get investors in. Ajay Tyagi said Sebi has given go-ahead to initial public offers (IPOs) worth over Rs 600 billion in 2018, but many of them are yet to hit the street. Till end October, 24 companies raised Rs 309.59 billion through IPOs but most this been in the March quarter. According to the same agency, over 40 companies have IPO approvals totalling over Rs 600 billion, but most are not in a hurry as secondary market is roiled. That apart some 30 more companies have filed the draft IPO papers with Sebi. As of end October, 24 companies raised Rs 309.5907 billion through IPOs but the bulk of the activity was in the March quarter, wherein 14 firms raised Rs 185.917 billion. The IPOs are not taking place is something that’s a cause of worry, he said. Tyagi said masala bonds has not picked up as much as we would have liked it to have because of taxation issues. Tyagi said he is against forced listing of multinational companies on our exchanges, he said at the same time he would welcome a policy regime that encourages such companies to raise funds from our primary markets.

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