Sebi has no business to suggest IPO pricing of new-age tech firms: Madhabi Puri Buch

Securities and Exchange Board of India's (Sebi's) Chairperson Madhabi Puri Buch on Tuesday said the capital markets regulator has no business to suggest pricing of the initial share sale of new-age technology companies. She, however, quickly added that there needs to be more disclosures by companies on how valuations have changed between a pre-initial public offering (IPO) placement and the price which is being asked for in the issue.

"A lot has been said about the pricing of IPOs of tech companies at what price you choose to do the IPO is your business, we have no business to suggest otherwise," Buch said addressing the annual Capital Markets summit organised by industry lobby Ficci.

She said a company is free to ask for a higher price, but needs to disclose what happened in the intervening period which justifies the massive change in the valuation. It can be noted that there have been concerns about investors, especially the unsuspecting retail ones, being taken for a ride due to high valuations sought by new-age tech companies. The share price of payment platform Paytm collapsed to a third of the IPO issue price within a few weeks of listing.