Sebi has since intensified the scrutiny of IPO filings, especially for newer companies.

While private filing is only optional, more companies are likely to choose it, experts believe. This would protect them from excessive criticism over pricing, ownership, and profitability, among other things. It would reduce the hampering of investor demand for IPOs, minimizing the effect on the post-listing business.

“The biggest motivation is that disclosures don’t become public until approved by Sebi. The public does not know about the competitive positioning, group company, and related party disclosures,” Pranjal Srivastava, partner-investment banking at Centrum Capital, told Business Standard.

“That’s the reason it is going to be popular. Many times when you file, you are not sure you will get the response or even the valuation,” Srivastava said.

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