Amid market rout, companies do a rethink of their IPO plans

With the stock market in the midst of a correction, as many as over 20 companies are rethinking their plans on whether to go with public, says a report by the Business Standard.

Around two dozen companies were hoping to raise a cumulative Rs 16,500 crore through IPOs. But as per PRIME Database, most companies are looking at an offer lapse in the next few weeks.

Most of the companies that were supposed to launch its IPOs on this list, belong to small- and mid-cap categories.

One of the companies on the list is state-owned Mazgaon Dock, which plans to re-file its IPO application with SEBI after its approval lapses later this week, said sources to daily.

IPO approvals are provided by the market regulator Securities and Exchange Board of India (SEBI). All approvals remain valid for one year before they lapse and require re-filing a request to obtain fresh approval after that.

Indian markets have witnessed volatility driven partly by a Budget announcement in July that foreign portfolio investors would be taxed more.

In July, the Nifty fell 5.6 percent, while the S&P BSE Sensex plunged 4.8 percent.