White-knuckle volatility forces companies to let IPO approvals lapse

Some firms may blue-pencil valuations because of capital requirement compulsions or for providing exits to their investors. Still others can afford to wait

While the initial public offering (IPO) market has gained some momentum, not everyone is able to ride the bus. Market volatility has forced several companies to let their approval granted by the markets regulator — the Securities and Exchange Board of India (Sebi) — lapse.

After vetting the IPO draft red herring prospectus (DRHP), Sebi offers its final observations. A company has to launch its IPO within one year from the date of the final observations.

About half a dozen such approvals have lapsed over the past two months. Another half a dozen are staring at expiry by the end