Three firms may let share sale deadlines lapse this month
Ltd‘s approval lapsed after it failed to launch its IPO within the 12-month period.
Several companies allowing their IPO approvals to lapse reflects the difficult conditions in India’s primary markets, which have also seen several high-profile deals get postponed due to lack of investor enthusiasm. Secondary market volatility and other macroeconomic headwinds, such as crude price and rupee depreciation, have also impacted investor interest in public offers.
“Markets have been very volatile this year and valuations, especially, in mid- and smallcap segments have corrected significantly compared to last year. As a result, pricing deals is a challenge from all perspectives,” an investment banker, who advises clients on IPOS, said on condition of anonymity.
Some companies might file their offer documents again and take fresh approvals with the hope that markets will improve early next year or after the general elections next year, he added.