Finshots Daily Understanding confidential IPOs
Oct 8, 2025
Discover the growing trend of confidential IPOs among Indian companies. Learn why firms prefer secrecy, likening it to party planning, to avoid speculation and scrutiny. Hear examples of Infra.Market and Tata Capital using this route. Delve into the risks of public filings and how they expose sensitive metrics to competitors, like Swiggy. Plus, find out how confidential filings offer founders more control and flexibility amidst fluctuating market conditions.
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Private Plans Avoid Public Embarrassment
- The host compares two birthday-party plans to show the value of waiting until certainty before announcing big public plans.
- Keeping plans private until resources arrive prevents embarrassment and reputational damage.
Confidential DRHPs Are Growing Rapidly
- Many Indian firms now use confidential DRHP filings to avoid public scrutiny before committing to an IPO.
- Since SEBI allowed pre-filing in Nov 2022, 22 companies used it, 18 in 2025 alone.
Public DRHPs Can Hurt Reputation
- Public DRHPs expose companies to media scrutiny, investor speculation and reputational risk if IPOs are delayed or cancelled.
- Firms prefer secrecy to avoid headlines and long-term damage to fundraising prospects.