From Rajkot to Raipur, Surat to Siliguri, the enterprising promoters of ?100–300 Cr companies are catching the IPO fever. It is the new status symbol, the ultimate “I’ve arrived” moment. But is it a smart scale-up strategy or just a shiny vanity badge?
Let’s face it – there are many reasons why Tier-II promoters are rushing to Dalal Street. Some want to raise capital (“equity is cheap, no EMIs to keep!”), others want name, fame, and that blue tick of legitimacy. A few are, let’s admit, tempted by the stock game post-listing of either riding the wave or rigging the rave.
But here’s the thing: Listing is not a milestone. It’s a mindset shift. You’ve got public scrutiny, compliance calls, investor Q&As, and analysts dissecting every quarter.
So, why should you go public?
1) To raise growth capital, not just repay old debt.
2) To unlock value, not just valuation.
3) To institutionalize governance, not glamorize it.
4) To build long-term trust, not short-term buzz.
Unfortunately, many promoters go public without going within. They don’t ask: “Do I really need public money or am I just avoiding bank borrowing?”
a) “Will I reinvest for growth or just retire old loans?”
b) “Is my business IPO-ready or just promoter-hungry?”
c) “Do I understand the dilution math or just like how it sounds?”
And then comes the classic slip: undercooked valuations.
In the rush to ring the bell, they forget to polish the pitch.
Remember: IPO isn’t an exit, it’s an entry.
If you list too early, you might leave money on the table and regret the label.
Also, investor confidence isn’t built on cover stories.
It’s built on clarity:
– Clear fund utilization plan
– Realistic projections
– Sensible pricing
– Transparent governance
The IPO dream isn’t wrong, but doing it wrong is.
Before chasing the limelight, be sure you’ve fixed your fundamentals.
Because once you’re public, the public is your new partner and they ask tough questions. Numbers can dazzle, but only governance dazzles longer.
In Conclusion:
An IPO is not a shortcut to glory, it’s a chapter in your story. Don’t go solo on this road.
Get a wise counsel: a strategy sage, a finance friend, a legal eagle. Someone who’ll ask the tough questions before SEBI does.
IPO = It Pays (to) Organize.
Plan it. Price it. Pitch it right.