initial public offering, SEBI has stopped issuing new IPOs. Is the stock market crash the reason? – sebi and investment bankers turn cautious as ipo market faces uncertainty

The Sebi board has withdrawn the IPO documents of Oravel Stays, the parent company of popular travel and hospitality company OYO and Go Digit General Insurance. It has also withdrawn the offer documents of Pune-based integrated facilities management company PVG India, payment services provider Paymade India and Fincare Small Finance Bank.

An investment banking official said that several people who were planning to file IPO documents have decided to shelve their plans.

An initial public offering (IPO) faces uncertainty in the stock market. As a result, the market regulator SEBI has returned the IPO documents of several companies. Investment bankers and firms are said to have taken the decision as a precautionary measure as the stock market fell 8.79 percent since December 2022.

Notably, promoters and companies in high-profile IPOs such as Paytm, FSN E-commerce (Nykaa), Nazara Technologies, PB Fintech, CarTrade Tech, Easy Trip Planners, Aditya Birla Sun Life AMC and Fino Payments have also suffered steep declines in the past year.

Moreover, the issued share prices fell sharply below their IPO prices. LIC’s IPO share price, which had opened at Rs 949 per share, fell 39 per cent to Rs 579.90 on exchanges.

It is because of this that SEBI is holding back new IPO issues. Compared to the total IPOs issued in 2021 worth Rs 1.22 lakh crore, in 2022 it will be Rs. 55,472 crores.

Because companies and promoters are cautious after the volatility in the stock market. Hence, new IPO issuances are expected to decline further in 2023.