The Economic Times has published an article exploring the question, should SEBI monitor and oversee the IPO valuations?
The discussion comes amid the high-profile listings of Lenskart.com and Groww, together seeking valuations of nearly ₹1.3 lakh crore, which have sparked intense debate over whether India’s startup IPOs are being priced too optimistically.
In this context, Mr. Sumit Agrawal, Managing Partner of Regstreet Law Advisors and former SEBI Officer, has been quoted in the article titled “𝘛𝘩𝘦 𝘙𝘴 1 𝘓𝘢𝘬𝘩 𝘊𝘳𝘰𝘳𝘦 𝘋𝘦𝘣𝘢𝘵𝘦: 𝘊𝘢𝘯 𝘚𝘌𝘉𝘐 𝘗𝘰𝘭𝘪𝘤𝘦 𝘐𝘗𝘖 𝘝𝘢𝘭𝘶𝘢𝘵𝘪𝘰𝘯𝘴 𝘰𝘳 𝘵𝘩𝘦 𝘉𝘶𝘤𝘬 𝘚𝘵𝘰𝘱𝘴 𝘸𝘪𝘵𝘩 𝘐𝘯𝘷𝘦𝘴𝘵𝘰𝘳𝘴?”
Mr. Agrawal noted that valuation is inherently subjective. , shaped by several factors such as past and future earnings potential, market liquidity, and growth expectations.
He further observed that SEBI continues to play a crucial role within its regulatory framework:
“𝘐𝘧 𝘵𝘩𝘦𝘳𝘦 𝘪𝘴 𝘢 𝘮𝘪𝘴𝘴𝘵𝘢𝘵𝘦𝘮𝘦𝘯𝘵 𝘰𝘳 𝘰𝘮𝘪𝘴𝘴𝘪𝘰𝘯, 𝘚𝘦𝘣𝘪 𝘤𝘢𝘯 𝘵𝘢𝘬𝘦 𝘢𝘤𝘵𝘪𝘰𝘯 𝘢𝘨𝘢𝘪𝘯𝘴𝘵 𝘱𝘳𝘰𝘮𝘰𝘵𝘦𝘳𝘴 𝘢𝘯𝘥 𝘮𝘦𝘳𝘤𝘩𝘢𝘯𝘵 𝘣𝘢𝘯𝘬𝘦𝘳𝘴. 𝘉𝘶𝘵 𝘪𝘧 𝘦𝘷𝘦𝘳𝘺𝘵𝘩𝘪𝘯𝘨 𝘪𝘴 𝘱𝘳𝘰𝘱𝘦𝘳𝘭𝘺 𝘥𝘪𝘴𝘤𝘭𝘰𝘴𝘦𝘥, 𝘵𝘩𝘦 𝘮𝘢𝘳𝘬𝘦𝘵 𝘥𝘦𝘤𝘪𝘥𝘦𝘴 𝘵𝘩𝘦 𝘱𝘳𝘪𝘤𝘦.”
The full article by The Economic Times can be accessed here: https://lnkd.in/d8xvY_ZZ
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