IPO Pitches Stretch: Banks Face Longer Wait

The process for investment banks to secure initial public offering (IPO) mandates has significantly lengthened, with preparation periods now extending up to a year from an initial pitch. This change reflects a more cautious approach by company promoters, who are undertaking deeper due diligence and taking more time to select advisers with relevant sector expertise. Volatile global markets and unpredictable listing-day performance have prompted issuers to expand preliminary compliance efforts and insulate valuations against a selective investor base.

Companies are utilizing this extended timeframe to genuinely prepare their businesses for operation as listed entities, focusing on fast financial closes, strengthened internal controls, and settling governance matters before filing draft red herring prospectuses. Equity capital market lawyers note that pitch deck reviews have evolved into exhaustive verification processes, covering promoter details, subsidiaries, financial indebtedness, and related-party transactions. While some large mandates like NSE and Jio Platforms finalized quickly, many others are experiencing prolonged pitching sessions due to promoters seeking specific bankers with proven track records in handling complex issues.