'Scam IPO' fears raise red flags on Dalal Street
Corporate governance experts say that IPOs with a higher offer for sale portion require greater transparency and stronger disclosures.
When promoters and insiders are the sole beneficiaries of IPO proceeds, it is the responsibility of regulators and investors to ensure that disclosures accurately explain the valuation, timing, and rationale. In the case of CMR Green Technologies, the combination of insider share purchases at low prices and a full OFS structure has sparked discussions about governance.
