The share prices will be determined by markets depending upon the opportunities and Sebi’s role is to ensure that the disclosures are robust, Pandey told media on the sidelines of the SBI Conclave 2025.
The issue of IPO valuations in new-age companies has been a hot potato for a long time now, and the recent issue of Lenskart Solutions has reignited the debate.
Lenskart Solutions’ $821 million (Rs 7,278 crore) initial public offering received strong investor response, getting subscribed over 28 times notwithstanding the eyewear retailer’s pricing that has sparked concern over whether Indian startups are being valued too richly as they go public.
The issue which closed on Tuesday was launched at a price band of Rs 382 to Rs 402 per equity share. At the upper end of the price band, the company is valued at nearly Rs 70,000 crore, translating to a price-to-earnings multiple of over 230X based on FY25 earnings — one of the highest among consumer-tech listings in India.
Meanwhile, speaking at the event organised by Excellence Enablers, Pandey asked for companies to be more “authentic” on their environment, social and governance (ESG) commitments.”ESG must be authentic, not a branding exercise,” he said, adding that it must be tied to measurable outcomes, subject to independent assurance, and anchored in genuine board oversight.Making it clear that ESG is no longer optional, Pandey said a business has to turn regulations into an advantage and not an obligation which needs to be complied with.
There is a need to “institutionalise ethics”, starting with boards adopting governance scorecards that track cultural health with the same seriousness as they track revenue and return ratios.
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