Govt tightens IPO valuation scrutiny, jolts startups eyeing listings: Report

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NEW DELHI: The government has tightened scrutiny of IPO-bound firms by questioning how key internal business metrics are used to arrive at valuations, unsettling bankers and companies which fear delays in listing plans, sources with direct knowledge told Reuters.
The Centre’s push comes after the flop listing of SoftBank-backed payments firm Paytm’s $2.5 billion IPO in November which sparked criticism of lax oversight of how loss-making companies price issues at what some say are lofty valuations.
The Securities and Exchange Board of India (Sebi) last month flagged concerns in proposing stricter disclosures, saying more and more new-age tech firms which “generally remain loss making for a longer period” were filing for IPOs, and traditional financial disclosures “may not aid investors.”
But even before the proposal is finalised, Sebi has in recent weeks asked many companies to get…

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