The Indian public markets are projected to be worth $2.7 trillion. There is a sizable retail investor base, and the public awareness of listed companies is on the rise. Companies seeking to obtain funds are increasingly opting for an initial public offering (IPO).
The road to IPO, on the other hand, must be meticulously planned. There has been an influx of enterprises, particularly Micro, Small, and Medium Enterprises (MSMEs) and startups, seeking public listing in recent years. In fact, the Indian government is announcing policies that will aid these businesses in their endeavors.
IPO listings enable MSMEs and startups to gain access to finance, albeit they come with a lot of responsibilities. Former MSME Minister Nitin Gadkari stated in June 2020 that the government is considering establishing a specifically established "MSME Stock Exchange" on which such small enterprises will be listed. Businesses that list on the platform will receive a 15 percent equity injection from the government.
Unlike MSMEs, startups should only consider an IPO when they are completely prepared - ready for examination and with a new playbook that includes recruiting the correct board of directors and establishing communication lines with stakeholders.
Take a call
High governance and stable business (growth) performance or cycles are required in public markets. Going public for a business to consumer (B2C) brand would entail higher branding visibility, which could be used to boost income and (perhaps) increase consumer engagement. In comparison to a private raise, however, reaching public markets is difficult.
Going public would necessitate the rigour and discipline of quarterly meetings with major investors, large shareholders, and equity analysts. Depending on the days spent per quarter on this activity, this could entail time away from the primary business.
Companies considering an IPO should first decide whether to list on the NSE or the BSE.
Read More About Click Here : Online Startup Registration Services
Websites : https://www.setupservicesindia.com/
No comments:
Post a Comment