Companies Tata Play and Oravel Stays have opted for the confidential route when filing for IPOs, while others are yet to follow suit. This move comes as SEBI introduced the confidential filing mechanism, allowing companies to keep their IPO details private until closer to the launch date. By doing so, companies can reduce the risk of sensitive information being leaked, which in turn can prevent price manipulation and speculation. However, while the confidential filing mechanism has been available since 2018, it has not gained significant traction among companies. Experts suggest that several factors could be contributing to this slow adoption. One reason could be the fear of market manipulation, as companies may worry that this new mechanism could actually enable insiders to profit from the information, making it a riskier option. Additionally, there could be concerns about the lengthy approval process and the impact on market sentiments. Despite these concerns, it is expected that more companies will gradually opt for confidential filing in the coming years. As the advantages and success stories of this mechanism become more apparent, companies may become more willing to adopt it, ultimately benefiting both the companies and the investors.
