Wake up, SEBI

Using valuation to buy companies that are in a much lower multiple and putting it all together to make an ‘Action Defining Logic’ entity with a monster value was a strategy that was working and logical for the edtech company in that heady world of acquisition-led and fund-infusion-based valuation fantasy, before taking the company public and placing the monkey of that overvalued monster squarely on the shoulders of believing, FOMO retail investors.

…My questions to Madhabi Puri Buch, the Chairperson of SEBI, are these:

Where is the potential for wealth creation for the retail investor if valuations are 10-times the industry median? Would SEBI have allowed the listing of the parent at $22 billion or the offline subsidiary at $4 billion if the can of worms hadn’t ope…

Read more at: https://www.deccanherald.com/opinion/comment/wake-up-sebi-1243321.htm