In this article, we will dive into some companies that have gone through the confidential filing process of their IPO documents, such as Tata Capital, Groww, Shadowfax, etc, and look at the IPO highlights. And why even a company may choose the confidential path.
What is a confidential IPO filing?
When a company wants to list itself on the stock market, it has to share its financial details with SEBI. In a confidential IPO filing, the company sends these details privately to SEBI, instead of showing them to the public right away. This keeps everything hidden until the company is ready to go public.
Why Do Companies even choose to file this?
Companies use this route to stay low-key at first. If market conditions are bad or plans change, they can cancel or delay the IPO without making headlines. It also helps them protect their business secrets from competitors until the right time. This is helpful, especially for startups and fast-growing companies.
However, it comes with disadvantages as well; the process of filing a confidential IPO can be more time-consuming compared to the traditional process. It also comes with higher advisory and legal fees.
Which are some companies that filed through this route?
Shadowfax, a Flipkart-backed logistics startup, has filed its DRHP under a confidential route to protect sensitive information from its competitors like Delhivery, Ekart, etc. It plans to raise Rs 2,000-2,500 crore through IPO at a valuation of Rs 8,500 crore.
Backed by Peak XV, Tiger Global, etc, Groww too filed through a confidential route. According to sources, it is eyeing to raise Rs 6,000-8,500 crore through IPO at a valuation between Rs 59,500-68,000 crore.
Backed by Westbridge Capital, GSV Ventures, etc, PhysicsWallah, the leading edtech platform, plans to raise Rs 3,400-4,300 crore at a staggering valuation of Rs 42,500 crore, according to sources.
Shiprocket too filed a confidential IPO with SEBI, it looks to raise Rs 2,000-2,400 crore of which Rs 1,000-1,200 crore will be a fresh issue and the remaining would be raised via OFS (Offer for Sale).
Flagship Tata Capital too filed through this route, aiming to raise Rs 17,200 crore at a valuation of Rs 93,500 crore. This will be a combination of both fresh issue and offer for sale.
These are some of the trending IPOs that are expected to be listed on the exchange by the end of this year. However, an investor must analyse their business carefully before making any decision, as the valuations must be kept in mind before investing.
Written by Satyajeet Mukherjee
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