{"id":1466,"date":"2022-03-12T16:33:16","date_gmt":"2022-03-12T16:33:16","guid":{"rendered":"https:\/\/www.invest19.com\/blog\/?p=1466"},"modified":"2022-03-12T16:33:17","modified_gmt":"2022-03-12T16:33:17","slug":"sebi-tightens-valuation-laws-for-ipo","status":"publish","type":"post","link":"https:\/\/www.invest19.com\/blog\/sebi-tightens-valuation-laws-for-ipo\/","title":{"rendered":"SEBI TIGHTENS VALUATION LAWS FOR IPO"},"content":{"rendered":"<div style=\"margin-top: 0px; margin-bottom: 0px;\" class=\"sharethis-inline-share-buttons\" ><\/div>\n<p>2021 has been the year of\nIPO, with the number of new-age start-ups filling for IPO and ultimately\nlaunching it. To name a few, Zomato, Nykaa, Paytm among many all. Nykaa did\nbumper opening.&nbsp; But PAYTM the most\nawaited IPO of the year 2021 worth Rs18000 crores was a disaster, as it was listed\nat discount. On the listing day itself, it hit the low of Rs1271, and today it\nis trading at around 775.05. The Paytm shares have lost more than half of their\nvalue.<\/p>\n\n\n\n<p>Securities Exchange Board of India, the market watchdog\nhas tightened the valuation for the firms in line for IPO. The major key points\ntouched are the key internal\nbusiness metrics used to arrive at valuations. This has certainly shaken the bankers, and\ncompanies who are lining up for the IPO are worried about delays in launches.<\/p>\n\n\n\n<p>The major reason behind this tightening\nis that most of the new tech companies remain in losses for a longer time frame\nand traditional financial disclosure is not of great help to the investors.\nThus, before even deciding tightening policies for the IPO valuation, SEBI has\nasked all the firms due for their IPO to get non-financial metrics like Key\nperformance indicators audited and how are these being used to arrive at a\nvaluation for the firm. Non-financial metrics are difficult to audit\nor connect to a company\u2019s performance and thus valuation.<\/p>\n\n\n\n<p>This tightening by SEBI has certainly shaken the\ncompanies and bankers. Further, the companies will also have to justify the\nvaluation, as per the information floating in the market.<\/p>\n\n\n\n<p class=\"has-text-align-center\">\u00a0Upcoming IPOS that will be effected by this move are as follows:<\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"411\" height=\"353\" src=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/Untitled-1.png\" alt=\"\" class=\"wp-image-1470\" srcset=\"https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/Untitled-1.png 411w, https:\/\/www.invest19.com\/blog\/wp-content\/uploads\/2022\/03\/Untitled-1-300x258.png 300w\" sizes=\"auto, (max-width: 411px) 100vw, 411px\" \/><\/figure><\/div>\n<div class='epvc-post-count'><span class='epvc-eye'><\/span>  <span class=\"epvc-count\"> 2,072<\/span><\/div><div class=\"pld-like-dislike-wrap pld-template-1\">\n    <div class=\"pld-like-wrap  pld-common-wrap\">\n    <a href=\"javascript:void(0);\" class=\"pld-like-trigger pld-like-dislike-trigger \" title=\"\" data-post-id=\"1466\" data-trigger-type=\"like\" data-restriction=\"ip\" data-ip-check=\"0\" data-user-check=\"1\">\n                        <i class=\"fas fa-thumbs-up\"><\/i>\n                    <\/a>\n    <span class=\"pld-like-count-wrap pld-count-wrap\">3    <\/span>\n<\/div><\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>2021 has been the year of IPO, with the number of new-age start-ups filling for IPO and ultimately launching it. To name a few, Zomato, [&hellip;] <span class=\"read-more-link\"><a class=\"read-more\" href=\"https:\/\/www.invest19.com\/blog\/sebi-tightens-valuation-laws-for-ipo\/\">Read More<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":1467,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[180,70,2,10],"tags":[],"class_list":["post-1466","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-ipo","category-stock-market","category-featured"],"_links":{"self":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1466","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/comments?post=1466"}],"version-history":[{"count":2,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1466\/revisions"}],"predecessor-version":[{"id":1471,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/posts\/1466\/revisions\/1471"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media\/1467"}],"wp:attachment":[{"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/media?parent=1466"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/categories?post=1466"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.invest19.com\/blog\/wp-json\/wp\/v2\/tags?post=1466"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}