Companies trim IPO sizes to ride market roller coaster, say experts

Slowing corporate earnings, FPI outflows behind valuation reassessment, say experts

Companies are pushing ahead with their initial public offerings (IPOs) by compromising on valuations and reducing their issue sizes to attract investors, notwithstanding the prevailing volatile market conditions. 

Ajax Engineering, whose IPO opens on Monday, has cut the number of shares on offer to 20.18 million from 22.88 million when it filed its draft red herring prospectus (DRHP) in October. Market players revealed that the company initially aimed to raise Rs 2,000 crore but had to settle for a lower valuation. Similarly, Carlyle Group-owned Hexaware has reduced its IPO size to Rs 8,750 crore from Rs 9,950 crore when it