Lacklustre response to last few IPOs may force firms to revisit valuations

The muted response received by the recent public offers could force companies planning their initial share sales to revisit their valuations.

According to industry players, firms that have filed their draft prospectus are looking at lowering their valuations to ensure smooth sailing of the issuances. Five of the seven companies that went for public float last month struggled to sail through.

After filing for an IPO, companies are allowed to revise their valuations by up to 20 per cent from initial expectations. If the revision is steeper, the company has to re-file its offer document with the Securities and Exchange Board of