Equitas SFB postpones IPO on the outbreak of COVID-19
In the first place, Equitas SFB stated on March 18th that it postpones the launch of the public issue. Because of the outbreak and rapid spread of COVID-19, the market conditions have worsened up.
Besides, the Equitas comes up as the third victim of the COVID-19 that damaged not only global equity markets but also commodities. Also, Indian equities have so far corrected nearly 32% from record highs seen in Jan 2020.
The fast-food restaurant Burger King and chemicals manufacturer Rossari Biotech remained the two others who rescheduled their IPOs. Also, Antony Waste Handling Cell decided to withdraw its IPO due to weak market conditions.
Besides, the massacre in the world has also affected the listing of SBI Cards and Payment Services. Sadly, the stock traded at Rs 689.25 share, down 8.7% from its issue price of Rs 755 per share.
Hence, the Equitas management stated the IPO would remain delayed as the market stood volatile. And it also presumes that it does not seem like the right moment to get listed on bourses.
Despite this, it has also received approval from the capital market regulator SEBI to float the IPO on March 3rd. Also, the draft red herring prospectus for the IPO stood filed by the company in Dec last year.
Moreover, the issue remained slated to consist of a fresh issue of Rs 550 crores. And an offer for sale of 8 crore shares by parent firm Equitas Holdings.