Three firms may let share sale dead­lines lapse this month

Mint ST - - FRONT PAGE -

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.

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