{"id":173106,"date":"2025-12-30T06:54:11","date_gmt":"2025-12-30T11:54:11","guid":{"rendered":"https:\/\/alphastreet.com\/india\/?p=173106"},"modified":"2025-12-30T06:54:11","modified_gmt":"2025-12-30T11:54:11","slug":"why-companies-are-going-quiet-before-ipos","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/why-companies-are-going-quiet-before-ipos\/","title":{"rendered":"Why Companies Are Going Quiet Before IPOs"},"content":{"rendered":"\n

Imagine you\u2019re turning 25 next month and you\u2019re also counting on a generous Diwali bonus. Riding high on that expectation, you excitedly tell friends you\u2019re planning a lavish birthday dinner. You start early, picking the venue, finalizing the menu, and drawing up a long guest list.<\/p>\n\n\n\n

But then Diwali passes, and the bonus never arrives. Suddenly, the grand plan feels wildly optimistic. You cut corners, cancel invites, and host a much smaller get-together. By the next day, word spreads. Some friends feel snubbed, others gossip about the \u201cbig party\u201d that never really happened. It\u2019s awkward, disappointing, and far from how you imagined celebrating.<\/p>\n\n\n\n

Now flip the script. This time, you don\u2019t announce anything upfront. You wait until the bonus actually lands in your bank account. Only then do you set a budget, send invites, and host a perfectly planned evening. The party goes off without a hitch, and months later, people still remember it fondly.<\/p>\n\n\n\n

There\u2019s no question which version feels better.<\/p>\n\n\n\n

And that\u2019s exactly how many companies are approaching IPOs today.<\/p>\n\n\n

\n
\"\"<\/figure>\n<\/div>\n\n\n
<\/div>\n\n\n\n

The Rise of the Quiet IPO<\/h3>\n\n\n\n

A few days ago, Infra.Market, a construction materials marketplace valued at around $2.8 billion, quietly filed its Draft Red Herring Prospectus with SEBI through the confidential, or \u201cpre-filing\u201d, route. Under normal circumstances, a unicorn making an IPO move would dominate headlines. Instead, Infra.Market\u2019s filing barely made a ripple, tucked away in small notices clearly stating that pre-filing does not guarantee an eventual listing.<\/p>\n\n\n\n

This isn\u2019t a one-off. Tata Capital\u2019s IPO, also began with a confidential filing. Since SEBI introduced this mechanism in November 2022, 22 companies have chosen this route with 18 filings happening in 2025 alone.<\/p>\n\n\n\n

Which raises a natural question: why are so many firms choosing to stay silent before going public?<\/p>\n\n\n\n

<\/div>\n\n\n\n

Avoiding the Noise Before Certainty<\/h3>\n\n\n\n

The answer lies in control and optionality. Companies want the freedom to explore a listing without committing publicly. Because once an IPO is announced the traditional way, backing out becomes costly.<\/p>\n\n\n\n

If a company files a public DRHP and later decides to delay or scrap its IPO, speculation takes over. The media dissects the decision, investors question the business, and doubts linger. That reputational damage doesn\u2019t fade easily and can hurt future fundraising efforts.<\/p>\n\n\n\n

Under the traditional route, the DRHP is publicly available for at least 21 days. During this time, investors can comment, analysts scrutinise numbers, and journalists mine it for stories. Once SEBI issues its observations, the company has up to 12 months to launch the IPO, during which the document complete with sensitive business details remains in the public domain.<\/p>\n\n\n\n

And that exposure is exactly what many firms want to avoid.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Protecting Competitive Secrets<\/h3>\n\n\n\n

Take Swiggy as an example. By opting for confidential filing, it prevented rivals from accessing granular data, especially from its quick-commerce arm, Instamart. Pricing strategies, unit economics, customer metrics, and growth assumptions are goldmines for competitors. Making them public before a company is certain about listing is like revealing your playbook mid-game.<\/p>\n\n\n\n

There\u2019s also the issue of revisions. SEBI often seeks clarifications or changes to DRHPs, which is a normal part of the process. But when every back and forth plays out publicly, even routine regulatory queries can snowball into damaging headlines.<\/p>\n\n\n\n

The recently concluded WeWork India IPO illustrates this risk. Despite being fully subscribed, it faced public scrutiny over alleged inconsistencies in its DRHP and questions around regulatory oversight. When such narratives surface during an active IPO, they can influence investor sentiment, valuations, and post-listing performance.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Why the Confidential Route Appeals<\/h3>\n\n\n\n

The confidential filing route flips this dynamic. Until SEBI issues its observation letter, the DRHP remains private, shared only with a small group of qualified institutional buyers, sophisticated investors like mutual funds, insurers, and banks.<\/p>\n\n\n\n

Once SEBI clears the document, the company gets up to 18 months to launch its IPO, provided it submits an updated DRHP within 16 months. That\u2019s a longer window than the traditional route and gives founders room to manoeuvre.<\/p>\n\n\n\n

If market conditions deteriorate due to global tensions, policy uncertainty, or sharp corrections, companies can pause or walk away quietly. No press conferences, no explanations, no reputational fallout. Timing becomes a strategic choice rather than a public commitment.<\/p>\n\n\n\n

<\/div>\n\n\n\n

The Transparency Trade-Off<\/h3>\n\n\n\n

That said, this approach isn\u2019t without concerns.<\/p>\n\n\n\n

The US introduced confidential IPO filings in 2012 to help smaller firms go public without excessive scrutiny. By 2017, the SEC extended it to all companies. Today, nearly 86% of US IPOs begin this way.<\/p>\n\n\n\n

But critics have long pointed out a risk: information asymmetry. While retail investors remain in the dark, insiders including company executives, bankers, lawyers, and regulators gain access to sensitive details. History shows that leaks and misuse of insider information aren\u2019t impossible. Even SEC employees have previously been charged with trading on non-public information linked to ongoing investigations.<\/p>\n\n\n\n

So while confidentiality reduces public noise, it doesn\u2019t entirely eliminate scrutiny or risk.<\/p>\n\n\n\n

<\/div>\n\n\n\n

Why This Still Matters for India<\/h3>\n\n\n\n

Despite these concerns, the bigger picture is clear. Confidential pre-filing gives Indian companies confidence. It allows founders to test the waters, fine-tune disclosures, and choose the right moment to go public without the pressure of public expectations.<\/p>\n\n\n\n

For India\u2019s capital markets, this could be a net positive. More companies may feel comfortable exploring listings. Better prepared IPOs could mean fewer surprises for investors. And over time, it could strengthen trust in the quality of companies entering the market.<\/p>\n\n\n\n

In short, companies are learning the value of waiting for the bonus before sending out the invites. And in a market as sentiment-driven as India\u2019s, that restraint might just make all the difference.<\/p>\n","protected":false},"excerpt":{"rendered":"

Imagine you\u2019re turning 25 next month and you\u2019re also counting on a generous Diwali bonus. Riding high on that expectation, you excitedly tell friends you\u2019re planning a lavish birthday dinner. You start early, picking the venue, finalizing the menu, and drawing up a long guest list. But then Diwali passes, and the bonus never arrives. […]<\/p>\n","protected":false},"author":1863,"featured_media":173107,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1941,12],"tags":[14512],"class_list":["post-173106","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-analysis","category-other-industries","tag-confidential-ipo"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2025\/12\/PhonePe-Files-Confidential-IPO-Papers-with-SEBI-Narrows-Losses-and-Lifts-Revenue-in-FY25_.webp","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":137360,"url":"https:\/\/alphastreet.com\/india\/indigo-paints-limited-indigopnts-q2-fy23-earnings-concall-transcript\/","url_meta":{"origin":173106,"position":0},"title":"Indigo Paints Limited (INDIGOPNTS) Q2 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"November 7, 2022","format":false,"excerpt":"Indigo Paints Limited (NSE:INDIGOPNTS) Q2 FY23 Earnings Concall dated Nov. 07, 2022 Corporate Participants: Srihari Santhakumar -- DGM Finance & Investor Relations Hemant Jalan -- Chairman Managing and Director Chetan Humane -- Chief Financial Officer Analysts: Percy Panthaki -- IIFL -- Analyst Prashant Kutty -- Sundaram Mutual Fund -- Analyst\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"Earnings Conference Call Transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/09\/Transcript-thumbnail-e1657213425955.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":175476,"url":"https:\/\/alphastreet.com\/india\/vedant-fashions-ltd-manyavar-q2-2025-earnings-call-transcript\/","url_meta":{"origin":173106,"position":1},"title":"Vedant Fashions Ltd (MANYAVAR) Q2 2025 Earnings Call Transcript","author":"News desk","date":"January 22, 2026","format":false,"excerpt":"Vedant Fashions Ltd (NSE: MANYAVAR) Q2 2025 Earnings Call dated Oct. 30, 2024 Corporate Participants: Vedant Modi \u2014 Chief Executive Officer Rahul Murarka \u2014 Chief Financial Officer Analysts: Anand Shah \u2014 Analyst Gaurav Jogani \u2014 Analyst Sameer Gupta \u2014 Analyst Ankit Kedia \u2014 Analyst Tejash Shah \u2014 Analyst Nihal Mahesh\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":173112,"url":"https:\/\/alphastreet.com\/india\/why-silver-exploded-in-2025\/","url_meta":{"origin":173106,"position":2},"title":"Why Silver Exploded in 2025","author":"Chirag Gupta","date":"January 5, 2026","format":false,"excerpt":"Imagine you\u2019ve been trading precious metals for nearly three decades. You\u2019ve seen cycles come and go. You\u2019ve lived through booms, crashes, and long boring stretches where nothing much happens. In 2025, gold is doing exactly what gold is supposed to do which is hitting record highs and rewarding patience. But\u2026","rel":"","context":"In "Analysis"","block_context":{"text":"Analysis","link":"https:\/\/alphastreet.com\/india\/category\/stock-analysis\/"},"img":{"alt_text":"Why is Silver price exploding","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/kg-will-gold-follow-suit.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/kg-will-gold-follow-suit.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/kg-will-gold-follow-suit.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/kg-will-gold-follow-suit.webp?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2026\/01\/kg-will-gold-follow-suit.webp?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":174491,"url":"https:\/\/alphastreet.com\/india\/adf-foods-limited-adffoods-q2-2025-earnings-call-transcript\/","url_meta":{"origin":173106,"position":3},"title":"ADF Foods Limited (ADFFOODS) Q2 2025 Earnings Call Transcript","author":"News desk","date":"January 22, 2026","format":false,"excerpt":"ADF Foods Limited (NSE: ADFFOODS) Q2 2025 Earnings Call dated Oct. 31, 2024 Corporate Participants: Sumer Thakkar \u2014 Promoter, The General Manager, Sales and Strategy Shardul Doshi \u2014 Chief Financial Officer Analysts: Ravi Udeshi \u2014 Analyst Kuber Chauhan \u2014 Analyst Shalini Gupta \u2014 Analyst Bhumin Shah \u2014 Analyst Neel Mehta\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":174269,"url":"https:\/\/alphastreet.com\/india\/electronics-mart-india-limited-emil-q2-2025-earnings-call-transcript\/","url_meta":{"origin":173106,"position":4},"title":"Electronics Mart India Limited (EMIL) Q2 2025 Earnings Call Transcript","author":"News desk","date":"January 22, 2026","format":false,"excerpt":"Electronics Mart India Limited (NSE: EMIL) Q2 2025 Earnings Call dated Nov. 11, 2024 Corporate Participants: Karan Bajaj \u2014 Chief Executive Officer Premchand Devarakonda \u2014 Chief Financial Officer Analysts: Devanshu Bansal \u2014 Analyst Prafull Rai \u2014 Analyst Omkar Chitnis \u2014 Analyst Drashti Shah \u2014 Analyst Viraj Shah \u2014 Analyst Amish\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/05\/Transcript-thumbnail.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":137152,"url":"https:\/\/alphastreet.com\/india\/kansai-nerolac-paints-limited-kansainer-q2-fy23-earnings-concall-transcript\/","url_meta":{"origin":173106,"position":5},"title":"KANSAI NEROLAC PAINTS LIMITED (KANSAINER) Q2 FY23 Earnings Concall Transcript","author":"IRS_INDIA","date":"November 3, 2022","format":false,"excerpt":"KANSAI NEROLAC PAINTS LIMITED (NSE:KANSAINER) Q2 FY23 Earnings Concall dated Nov. 03, 2022 Corporate Participants: Anuj Jain -- Managing Director Prashant Pai -- Director of Finance Analysts: Aniruddha Joshi -- Analyst Abneesh Roy -- Lulama Institute of Equities -- Analyst Adid -- Tihaptive -- Analyst Abeta -- Macquarie -- Analyst\u2026","rel":"","context":"In "Earnings Call Transcripts"","block_context":{"text":"Earnings Call Transcripts","link":"https:\/\/alphastreet.com\/india\/category\/transcripts\/"},"img":{"alt_text":"stock earnings conference call transcript","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2020\/02\/EarningsTranscript.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/173106","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1863"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=173106"}],"version-history":[{"count":1,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/173106\/revisions"}],"predecessor-version":[{"id":173108,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/173106\/revisions\/173108"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/173107"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=173106"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=173106"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=173106"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}