SEBI proposes new disclosures for loss making companies intending to issue an IPO

SEBI proposes new disclosures for loss making companies intending to issue an IPO

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SEBI proposes new disclosures for loss making companies intending to issue an IPO

Let us know in brief about the new disclosure requirements :
1. India’s market regulator plans to ask new-age technology companies to justify the pricing of shares for their initial public offerings to ensure transparency on account of the meltdown in stocks of some of these companies.
2. 5th March is the deadline for the public to submit their comments on the discussion paper issued in respect of the same.
3. The regulator wants new-age tech firms to explain in detail how they priced their shares for initial public offerings (IPO), compare it to pre-IPO share sales and publish all pre-IPO investor presentations to help investors make informed decisions.
4. The new proposal will ask companies to disclose their key performance indicators (KPIs) during the IPOs and certain additional parameters like valuation based on past transactions or fund-raising.
5. The companies will have to disclose all material KPIs shared with any pre-IPO investor in the final years leading to the IPO. KPIs by new-age firms should be defined clearly, consistently and precisely.
6. These KPIs would also require to be certified or audited by statutory auditors. The issuer will have to compare the KPIs with other listed peers in India and abroad.
7. These KPIs would also require to be certified or audited by statutory auditors. The issuer will have to compare the KPIs with other listed peers in India and abroad.

1 Comment

  1. February 22, 2022
    G S Srinatha

    Late realization from SEBI, recently zomato issued IPO, with share premium. Promoters holding is ZERO, as per today’s records at NSE website.

    Reply

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