Emkay Global Financial Services has indicated that several companies planning to go public may need to revise and re-submit their draft offer documents due to the sharp decline in the valuation of their listed peers. Yatin Singh, the CEO of Investment Banking at Emkay Global Financial Services, pointed out that new age technology firms could be particularly affected by this development, and the current volatile market conditions may lead these companies to consider confidential filings in the near future.
The recent market correction has had a negative impact on IPO activity, with only 10 IPOs hitting the market in the first two months of the year compared to 15 in the same period last year. Similarly, there were seven Qualified Institutional Placements (QIPs) this year as opposed to 18 in the previous year. However, the brokerage noted that divestments by state-owned firms could help bolster the IPO pipeline. Companies like Bharat Coking Coal and Central Mine Planning and Design Institute, subsidiaries of Coal India, are expected to launch their IPOs in the second half of FY26. Additionally, QIPs and offer for sale of companies like IREDA, GRSE, Veedol, Central Bank, UCO Bank, IOB, and Bank of Maharashtra are also expected. The Department of Investment and Public Asset Management has set a divestment target of ₹47,000 crore for FY26.
On a positive note, SIP inflows have remained robust, with over ₹20,000 crore of monthly inflows in the past 11 months. The brokerage highlighted the importance of SIP flows in supporting the market and noted that any slowdown in these inflows could impact the overall market sentiment.
Overall, the market conditions are challenging for companies looking to go public, and careful consideration and possibly revisions to offer documents may be necessary in light of the current market environment.
