A FAIR DISCLOSURE

TAKING COGNISANCE OF THIRD-PARTY REPORTS PAINTING A DECEPTIVELY ROSY PICTURE OF COMPANIES IN IPO DOCUMENTS, MARKET REGULATOR SEBI HAS STEPPED ON THE GAS TO BRING CONCRETE ACCOUNTABILITY INTO THE PROCESS. MORE ROBUST REGULATIONS ARE LIKELY TO FOLLOW

- ASHISH RUKHAIYAR

DO YOU KNOW the beauty of a 'disclaimer'? It simply allows you to present your views and opinions in any manner whatsoever, and then conveniently wash your hands of any possible effect, impact or action it might lead to. A word with great utility, one may say, especially when one wants to forecast a great future for a company and, at the same time, tell potential investors that the estimates may actually prove to be inaccurate.

STRONG PREDICTIONS…

“WE HAVE CONSISTENTLY GAINED MARKET SHARE OVER THE LAST FOUR YEARS TO BECOME THE CATEGORY LEADER... WITH OUR ORDERS INCREASING BY 13.2 TIMES (BETWEEN FY18 AND FY20)... AND OUR GOV (GROSS ORDER VALUE) GROWING 8.4 TIMES... WE HAVE A LARGE TOTAL ADDRESSABLE… MARKET OPPORTUNITY OF $65 BILLION (₹4.6 LAKH CRORE) GROWING AT 9% PER ANNUM TO $110 BILLION (₹7.7 LAKH CRORE) IN 2025…”

… BUT HOLD ON “

...DOES NOT GUARANTEE THE ACCURACY OR COMPLETENESS OF THE UNDERLYING DATA… FORECASTS, ESTIMATES AND OTHER FORWARD-LOOKING STATEMENTS CONTAINED IN THE… REPORT ARE INHERENTLY UNCERTAIN AND COULD FLUCTUATE DUE TO CHANGES IN FACTORS UNDERLYING THEIR ASSUMPTIONS…”

NOTE: A SAMPLE FROM A DRAFT RED HERRING PROSPECTUS (DRHP)