SEBI Chairperson Tuhin Kanta Pandey has firmly reiterated that the valuation of Initial Public Offerings (IPOs) is the sole domain of the market and its investors, not the regulator. Addressing the media on the sidelines of an event, the Chairperson responded to recent public criticism, particularly regarding the valuation of Lenskart’s ₹7,200 crore IPO.
The Chairperson clarified SEBI’s mandate, stating, “IPO valuations are determined by the market, not by us. SEBI’s responsibility is to ensure transparent and comprehensive disclosures”. The primary role of the market regulator is to enforce transparency in disclosures and ensure investor protection, not to engage in price fixing of the IPO.
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This intervention follows instances where new-age technology companies, including Lenskart, have faced sharp price corrections shortly after making their market debuts. This trend often leads to investor dissatisfaction and calls for regulatory scrutiny over pricing. However, SEBI’s stance remains clear: the onus is on the company to provide comprehensive details, and on the investor to assess the fair value. The regulator’s focus is on ensuring the information provided allows for this informed decision-making process.
