Feb 28, 2023
By: BI India BureauVolatile market conditions that have raised concerns over frothy valuations, along with strict regulatory requirements, have led to companies withdrawing or deferring their initial public offering (IPO) plans.
Credit: BCCL
Credit: BCCL
The Indian apparel wear retailer shelved its IPO plans on February 27 amid uncertain markets. It was looking to raise ₹4,000 crore from the primary markets. The IPO consisted of a fresh issue of equity shares worth ₹500 crore with an offer for sale (OFS) of 25 million equity shares.
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The Kerala-based jewellery retail chain withdrew its ₹2,300 crore IPO on February 17. The company had intended to raise around ₹2,300 crore through a fresh issue of shares. About 60 percent of the IPO proceeds were to be used to repay debt, and some of the rest was earmarked for opening new stores.
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The Mumbai-based direct-to-consumer electronics brand withdrew its listing plans last October citing choppy market conditions. The company was looking to raise ₹2,000 crore through the IPO but instead chose to raise ₹500 crore from private investors.
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The online pharmacy chain cited market conditions and strategic considerations as reasons for withdrawing its ₹6,250 crore IPO in August 2022. Instead, it floated a rights issue worth ₹750 crore.
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Gurugram-headquartered online used cars marketplace and unicorn Droom, in October 2022, withdrew its plans to raise as much as ₹3,000 crore via a public issue of shares.
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In December 2022, e-commerce player Snapdeal withdrew its plans to raise ₹1,250 crore via a public offer, citing "prevailing market conditions".
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The solar panel manufacturer raised ₹1,000 crore from a clutch of investors in October 2022 while backing out of its plans to raise ₹1,200 crore through an IPO.
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