Several emerging unicorns and tech companies are increasingly choosing the confidential pre-filing route for their IPOs—a method that allows them to file Draft Red Herring Prospectuses (DRHPs) with SEBI without immediately making financial details public reddit.com+12financialexpress.com+12moneycontrol.com+12.
Why Confidential Filings are Trending
- Secrecy & Strategic Timing: Startups like Tata Play, Swiggy, Groww, Shiprocket, boAt, PhysicsWallah, and Aequs have leveraged this approach to manage market conditions and investor sentiment privately financialexpress.com+11financialexpress.com+11tejimandi.com+11.
- Regulatory Feedback Loop: Firms get early input from SEBI, enabling them to fine-tune disclosures before public release, reducing reputational and competitive risks financialexpress.com.
- Market Flexibility: The pre-filing route offers an extended timeframe to go public—18 months instead of 12 under the traditional route—granting preparation time and investor interest gauging reddit.com+11business-standard.com+11news.abplive.com+11.
Who’s Using It?
By May 2025, 12 companies had adopted confidential filings, up from just a handful in 2023. The list includes:
- Tata Play, Swiggy, Groww, Shiprocket, boAt, PhysicsWallah, Aequs, and others business-standard.com+2tejimandi.com+2livemint.com+2business-standard.com+12financialexpress.com+12moneycontrol.com+12.
Strategic Benefits for Startups
- Protection of Sensitive Metrics: Companies can preemptively address issues without exposing KPIs, trade secrets, or provisional financials.
- Exit Option: Firms can withdraw IPO plans discreetly if market conditions deteriorate.
- Competitive Edge: Avoid early media scrutiny and hostile copycat moves from industry rivals observervoice.combusiness-standard.com+2moneycontrol.com+2tejimandi.com+2.
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