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Sebi proposes rules on pricing of IPOs

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2 years ago

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Sebi proposes rules on pricing of IPOs

Mumbai: India’s market regulator plans to require new-age tech firms to justify the pricing of shares for their IPOs to ensure transparency, after shares in some of these companies crashed and eroded billions of dollars in investor wealth.

A discussion paper by the Securities and Exchange Board of India (Sebi) on Friday set March 5 as the deadline for public comment. Shares of some new-age tech companies like Paytm and Zomato have plummeted since going public.

Regulators want new-age tech companies to detail how they price shares in initial public offerings (IPOs), compare them to pre-IPO stock sales, and publish any pre-IPO investor presentations to help investors make decisions. a wise decision.

Sebi observed that many of these companies are going public without a solid track record of profitable operations for at least three years. These companies typically have been losing money for a long time before breaking even because they chose to scale rather than make profits during the growth phase.

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Some have gone public in the past year, hoping to capitalize on the stock market’s record rally. However, most are currently trading at a discount. Currently, the company only discloses earnings per share (EPS), price-to-earnings (P/E), return on equity (RoNW) and net asset value (NAV) and how these accounting metrics compare with peers, i.e. similar – the largest in the industry big company.

Such traditional parameters cannot be applied to new-age tech companies, Sebi said. It states that disclosures in the “Basics of Issuance Price” section must be supplemented, especially for loss-making companies, using non-traditional parameters such as key performance indicators (KPIs) and disclosing certain additional parameters such as transactions/fundraisings based on past valuations Activity.

“New-age startups that go public differ from traditional companies and this move is imminent as most startups are losing money. Before filing any offering documents, such companies should disclose estimates based on new offerings and acquisitions over the past 18 months. Current metrics may not be sufficient to give investors a clear picture of a company’s financial metrics. These new proposed reporting parameters will help investors make informed investment decisions related to these new age companies,” said Sonam, Managing Partner, KS Legal Chandwani said.

In his six-page paper, Sebi said such companies should disclose any key KPIs shared with any pre-IPO investors in the three years preceding the IPO.

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Lifestyle

10 best activities hacks for the better lifestyle for Business Managers.

Published

9 months ago

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August 9, 2023

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10 best activities hacks for the better lifestyle for Business Managers.

Business managers, known for their dynamic and demanding roles, are now adopting innovative activity hacks to improve their lifestyle and well-being. Recognizing the importance of work-life balance and personal wellness, these leaders are implementing a range of activities to foster physical health, mental clarity, and overall satisfaction in their professional and personal lives.

Mindfulness at Work lifestyle

Business managers are incorporating mindfulness practices, such as meditation and deep breathing exercises, into their daily routines to reduce stress and increase focus in high-pressure situations.

Regular Exercise Breaks

Amid tight schedules, managers are embracing short exercise breaks, such as brisk walks or stretching exercises, to stay active throughout the day and boost their energy levels.

Nutrition and Healthy Eating

Prioritizing their well-being, managers are adopting healthier eating habits, including nutritious snacks and well-balanced meals, to sustain their energy during demanding workdays.

Time Management Workshops

Business managers are attending time management workshops to enhance their organizational skills, enabling them to efficiently juggle multiple responsibilities and achieve better work-life integration.

Skill Development Seminars

Recognizing the value of continual growth, managers are attending skill development seminars to stay updated on industry trends and enhance their leadership abilities.

Flexible Work Arrangements

Some forward-thinking companies are offering flexible work arrangements to business managers, providing the freedom to create a more harmonious work-life balance.

Social Engagement

Building a sense of camaraderie, managers are engaging in team-building activities and networking events to foster positive relationships within their professional circles.

Unplugging from Technology: In a digital era, managers are prioritizing personal time by unplugging from technology during non-working hours, allowing for genuine relaxation and recharging.

Pursuing Hobbies and Interests

Managers are rediscovering their passions outside of work, be it painting, gardening, or playing a musical instrument, to unwind and find fulfillment beyond their professional roles.

Encouraging Employee Wellness

Some managers are also promoting wellness initiatives within their teams, encouraging their employees to embrace similar activity hacks and lead healthier lives.

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