To list or not to list : 7 companies that deferred IPO plans amid volatile markets

Feb 28, 2023

By: bhakti.makwana@timesinternet.in

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Why are companies withdrawing IPOs?

Volatile 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.

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​Here are eight companies that shelved their IPO plans after having filed a DRHP with SEBI. ​

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Fabindia

​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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Joyalukkas India

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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BoAt parent Imagine Marketing

​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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​PharmEasy parent API Holdings ​

​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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Droom Technology

​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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​Snapdeal ​

​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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Waaree Energies

​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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