Investment bankers say companies that were anyways targeting to file their prospectus before the end of the year could advance their filings to avoid any possible backlash the stricter disclosures may lead to
Issuers and investment bankers could speed up the draft red herring prospectus (DRHP) filing process to avoid stricter disclosure requirements. Industry players expect to see higher-than-usual filings of offer documents over the next two months before the new framework kicks in.
On Friday, the Securities and Exchange Board of India (Sebi) announced tightening of disclosure requirements for all initial public offerings (IPOs) amid criticism over pricing of share sales by loss-making companies. Going ahead, besides the traditional metrics, companies will now have to disclose key performance indicators (KPIs) that are normally not covered in the financial statements. Also, issuers will have to disclose details of pricing of shares for transactions carried out ahead of the IPOs. What's more, they will
First Published: Oct 02 2022 | 4:06 PM IST