In 2023, India has witnessed the highest number of initial public offering (IPO) globally despite global challenges and slowed economy. Indian companies have been actively raising funds through IPOs, with nearly 170 IPOs so far this year. This definitely makes India the IPO hub. In the third quarter of 2023, there were 21 IPOs in India, and these IPOs raised $1.77 billion, a substantial 376% growth compared to the $372 million in Q3 of 2022.
This year, on an average I would have met atleast 40 stakeholders from different companies for brand strategy and brand communication discussions. And out of this number I can safely say that more than 20% of these stakeholders shared their desire to build their brand in such a way that it is IPO ready.
The decision to go public with an IPO is a significant milestone for any company. It represents not only a financial event but also a critical moment for building brand visibility and higher equity and a well-thought-out PR strategy can be instrumental in ensuring a successful IPO by building trust, generating interest, and managing perceptions. But IPO is no child’s play and requires robust planning and through execution of brand communication strategies before an IPO is deployed.
So how can PR really help in this case? And what must one do to birth a successful IPO.
Starting Early: This is one advice I often give all the clients who are gunning for IPO in future. PR efforts for an IPO should begin long before the actual offering. Building a strong reputation and brand presence takes time. With a country like India where the target audience base is diverse marked by geographical complexities and innumerable media channels and platforms available for communication; having a clear, consistent PR communication focused on reputation management and thought leadership contributes immensely toward an upcoming IPO. Companies should establish a positive narrative well in advance, showcasing their industry leadership, growth prospects, and commitment to corporate responsibility.
A Compelling Brand Story: Every successful IPO is built on a compelling story that resonates with investors, analysts, media or any other stakeholders. PR professionals work closely with company leadership to create such narrative that highlights the company’s unique value proposition, vision, purpose and creates an emotional connection with the audience. Utilising media channels to put across such narrative is what PR professionals do best.
Authenticity and Transparency in Communication: Trust with potential investors is of paramount value. Transparency and honesty in conveying the company’s financial health, corporate governance, risks and growth prospects help in attracting and retaining investor confidence. PR professionals job entails to keep all stakeholders well-informed and aligned with the company’s goals before and during an IPO.
Managing Media Relations: One of the crucial tasks that PR professionals are assigned with is managing media relations. A well-orchestrated media outreach plan can help in shaping a positive image, controlling the narrative, and generating buzz. This includes preparing for a press conference to announce the IPO, drafting press releases and disseminating it to relevant media channels, organising interviews for the stakeholders and hosting media events.
Managing Stakeholder Relations: On top of this list lies establishing strong investor relations which plays a crucial. Regular briefings, roadshows, and conferences with potential investors help build trust and confidence in the company’s management and financial prospects. PR professionals play a pivotal role in coordinating these efforts.
Employees are a valuable PR asset. Ensuring that employees are well-informed and feel a sense of pride in the company’s IPO can lead to positive word-of-mouth and bolster the corporate culture.
Further, building relationships with industry analysts can help gain credibility and coverage in research reports. Analysts’ endorsements can positively impact investor sentiment and PR professionals often work closely with analysts providing them with relevant and timely information related to the IPO.
Legal and Regulatory Compliance: IPOs come with strict legal and regulatory requirements. PR teams should collaborate closely with legal experts to ensure all communications and disclosures comply with applicable laws.
CSR and ECG Focus: In today’s world investors want to know if the company is actively contributing back to the society and is not just monetary focussed. Highlighting the company’s commitment to environmental, social, and governance (ESG) principles or any other CSR activity can resonate with investors who prioritize such issues. This can be a key element of the PR strategy and most PR professionals recommend the same to the companies.
Marrying PR and Digital Marketing: Although both PR and Digital marketing are two separate fields under marketing and require their our expertise, the current eco-system requires for the PR and Digital Marketing Communication to be aligned and executed in a manner where the brand communication resonates a common message.
PR professionals can work closely with digital teams to share updates, provide insights, and engage with stakeholders. PR teams can leverage digital marketing to target specific audiences effectively.
Lastly, many mistakenly focus their PR efforts solely on the IPO launch, but the truth is that maintaining a strong PR presence after going public is equally essential. Post-IPO, it’s vital for companies to consistently engage with the investment community and media to uphold a positive public image and support stock performance. A well-thought-out PR strategy is not just about generating initial excitement; it’s about fostering trust, managing perceptions, and sustaining positive momentum over time.
Written by Smita Khanna Kithania, Chief Operating Officer, Newton Consulting India