Sebi digs deeper into IPO valuations: Report

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Deal Lieutenant

SEBI is asking us to “justify the valuation,” said one Indian lawyer advising several companies eyeing IPOs, adding it was “creating uncertainty and increasing cost of compliance.”

“India has tightened scrutiny of IPO-bound
firms by questioning how key internal business metrics are used to
arrive at valuations, unsettling bankers and companies which fear delays
in listing plans, sources with direct knowledge told Reuters.

India’s push comes after the flop listing of SoftBank-backed payments
firm Paytm’s $2.5 billion IPO in November which sparked criticism of lax
oversight of how loss-making companies price issues at what some say
are lofty valuations.

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