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Slow IPO Market: DRHP Filings Fall to 14 in February

4 March 20251 min read
BANKING & FINANCESlow IPO Market:DRHP Filings Fallto 14 in February4 March 2025safalsetu.com

Why in the news

Issuers are holding back: DRHP filings were at their lowest since November 2024 as market swings kept companies on the sidelines.

Key facts

  • Filings: 14 in February vs 29 in January.
  • Amount sought via IPOs: ₹9,695 crore, lowest in nine months.
  • A DRHP (Draft Red Herring Prospectus) is the draft offer paper filed before an IPO.

Reasons

  • Volatility: firms cautious since October.
  • Politics: investors nervous about Donald Trump’s likely return to the White House.
  • Wait-and-watch: filings paused until conditions turn calmer.

Market effect

  • Some brokerage stocks fell up to 18% amid long selling and possible SEBI derivatives-rule changes.
  • Reliance Industries dropped on weak earnings.

Exam angle

  • DRHP = Draft Red Herring Prospectus; regulator: SEBI.

Test yourself

1. How many companies filed DRHPs in February, as per the IPO slowdown notes?

Only 14 firms filed DRHPs in February against 29 in January.

2. What does DRHP stand for in the context of IPOs?

DRHP is the Draft Red Herring Prospectus filed before an IPO.

3. IPO fundraising plans sought in the February slowdown fell to which nine-month low?

The amount sought dipped to ₹9,695 crore, a nine-month low.

This topic is part of Daily Current Affairs 4 March 2025 (19 topics).

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