SEBI Has "No Business" Suggesting IPO (Public Issue) Pricing, Says Chair
NDTV
SEBI has "no business" suggesting IPO pricing for new-age tech companies, chairperson Madhabi Puri Buch said on Tuesday.
SEBI has "no business" suggesting IPO pricing for new-age tech companies, and it is the investment bankers who should allay any concerns around the issue, chairperson Madhabi Puri Buch said on Tuesday.
Ms Buch, an investment banker-turned-regulator, said that companies need to be more forthcoming on disclosures on how valuations have changed between a pre-initial public offering (IPO) placement of shares and the price which is being asked for in the issue.
"A lot has been said about the pricing of IPOs of the new tech companies. Our view is simple. At what price you choose to do your IPO is your business. We have no business to suggest the price...You are free to price the issue at whatever price you consider appropriate," Ms Buch said at an event organised by industry lobby Ficci here.
It can be noted that there have been concerns about investors, especially the unsuspecting retail ones, being taken for a ride due to high valuations sought by new-age tech companies.
