Firms are increasingly opting for confidential filings with SEBI, allowing them to submit draft documents without immediate public disclosure. , Markets, Times Now

How West Asia Crisis Could Change the IPO Plans of Companies in India

Companies are considering the confidential route to file the draft IPO. (Image Source: iStock)

The West Asia War impact on the Indian markets has not only restricted to fuel prices or falling rupee, but now it is escalating to the companies' Initial Public Offering (IPO) plans too. The companies are now reportedly considering the confidential route to file the draft IPO documents with the capital markets regulator, Securities and Exchange Board of India (SEBI).

Investment bankers and lawyers said they have advised more IPO-bound clients to opt for confidential filings with the Sebi than before, as reported by the Economic Times.

Under the confidential filing, companies can submit a draft red herring prospectus to Sebi without immediately disclosing business and financial details to the public. Companies get an 18-month window from Sebi's final observations to launch the IPO, against a 12-month window in the public filing route.

Recently, the fintech and enterprise technology firm Paramotor Digital Technology Ltd. has confidentially filed draft papers with markets regulator Sebi for an IPO, according to a public notice issued by the company.

Confiential IPO mechanism was introduced by Sebi in November 2022. It was widely practiced in markets like the US, the UK and Canada for a long time.

This route doesn't mean that the public will not know about the issue at all. Only the draft papers, containing sensitive information relating to the company, will be released later.

The Global IPO Giant: SpaceX

Another giant IPO that is to be watched closely on the global platform is the SpaceX which aims to raise up to $75 billion through its IPO, with a valuation expected to exceed $2 trillion.

This would far surpass the $29.4 billion raised by Saudi Aramco in its 2019 IPO.

As per reports, Goldman Sachs Group Inc. will lead the underwriting for SpaceX's anticipated initial public offering. Morgan Stanley is also a lead bank on the deal, reflecting its importance.

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