New Delhi, Dec. 15 -- Ace investor Madhusudan Kela is clear about one thing: he won't buy into a company if a promoter is paring stake at a time when the business itself requires capital.

His comments come in a year marked by intense debate over initial public offerings (IPOs) that have been used largely as exit routes for promoters and private equity backers.

"If a promoter is taking money out at a time when the company itself needs capital, I would never touch that company," Kela said at the Mint BFSI Conclave on 12 December.

However, he emphasized that exits are not a concern if the company does not require fresh capital, and the public issue is attractively priced. "If the promoters are ethical and the issue is done in a transparen...