Monday, August 6, 2007

IPO Marketing


How many of us were really aware of Vishal Retail before it came out with an IPO? We do know that it was subscribed 81 times.The prime reason for such a success was the effective marketing that brought Vishal Retail into the spotlight.


Of the 16000 crores that is spent on advertising in India, 200 crores is soent on IPO advertising.As we know,IPO is an Initial Public Offering by a company foraying into the stock market.It is way for companies that need capital for growth to sell ownership stakes to investors who believe in a company’s future prospects.Post IPO the company's responsibility to its investors is high in terms of the disclosures made
1.to maintain investor relations
2. to disclose the management credibility
3. to update business strategy as per changing external environment

The marketing phase of an IPO includes :
1. Print and distribute “red
herrings”
2.Analyst presentation to
underwriters’ sales forces
3.Target key investors
4.Roadshow presentations
Today marketing IPOs in India has gone much further.Just like an FMCG brand the IPO brand also transforms from an unbranded entity to a reference brand.The steps in the progress of IPO marketing will include:

1.Brand Awareness
2.Brand Building
3.Roadshows and Hoardings

Currently companies spend about 0.5% of the money they expect to earn from IPO on marketing.With India being the 8th largest IPO market and with the handsome returns being received over the past few years in IPOs , IPO Advertsiing market will see a big boom.


1 comment:

Virinder Urf Funda-Mentor said...

yes man... this is gonna be big now. with the investors also being more market savvy, this will give them more clarity on the IPOs and the companies... I like it man... sahi hai

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