India's move to tighten scrutiny of IPO-bound firms jolts startup world

Photo: Reuters

India 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.

India‘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.

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