India says IPO approvals valid for longer amid Middle East war
- India mandates that companies must go public within 12- to-18 months of regulatory approval.
MUMBAI: India has granted a one-off extension for public offers that are being deferred due to the Middle East war that is now in its sixth week, according to a statement by the markets regulator.
The Securities and Exchange Board of India said the extension is for companies whose regulatory approval will lapse between April 1 and September 30, with the extension valid until September 30.
India mandates that companies must go public within 12- to-18 months of regulatory approval.
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The regulator also said that exchanges will not penalize companies that can’t meet the regulatory requirement of having a minimum of 25% shares with the public. This leeway will also be until September 30.
The relaxations follow requests from market participants as the war and the resultant market volatility have led several firms to defer or withdraw share issuance plans.
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