IPO Investment Factors

📈 When market cap and brand strategy lose connection: The mismatch between market capitalization, investor sentiment and brand is a topic we follow and study closely at Interbrand. Our research, in partnership with NewtonX, shows that there is often a disconnect between a company’s performance and the investment community’s analysis of their brands. Our analysis found that 76% of investors believe that brand has a meaningful impact on valuation, but that a majority of the same audience believes their understanding of brands is low. This is a pattern we have seen before with many companies. And we have seen the impact the right brand strategy can have to shift investment sentiment, as much as shifting perceptions of the brand among other audiences. Starting with a well-known example, for a long time, Airbus’s market cap was lower than fair value, in part because of investor sentiment towards its ownership structure. Brand building and narrative have been key parts of shifting sentiment so that investors see and value them as global aerospace technology leaders. By focusing on sustainability, simplifying their brand architecture and branding their digital transformation strategy, they have recast themselves in the minds of the investor audience. Holcim, the Swiss building materials company, had a market cap that was below its potential. By changing their identity from a cement company to a sustainable building solutions company, by shifting their narrative to tons of carbon saved, they have helped the market see their true value. Similarly, semiconductor company STMicroelectronics has deployed the tools of branding to help close the gap between its strong company performance and its market capitalization. Positioning themselves as a systems-level edge AI partner has helped to change perspectives in the investor community and ultimately changed their market cap. This is the lens through which we look at recent news on Novo Nordisk. A category pioneer in anti-obesity medication and diabetes medication long before that, Novo Nordisk has made a stellar start with their latest innovation. The pill form of Wegovy has reached 170,000 new people in the first few weeks alone. Yet their announcement anticipating declining sales in 2026 has spooked the markets and their share price is down substantially. But the examples above show that there is huge potential for a company with Novo Nordisk’s innovation track record, pipeline, expertise and focus to realise substantial value through their brand. At Interbrand, our research into the link between market cap, investor sentiment and brand shows that brand plays a meaningful role in how future earnings, resilience, and growth potential are perceived, particularly by investors. And that value is best realised when the brand is sharp and confident in carrying a clear, future-facing narrative.

India’s IPO Market: Hot, Yes. Euphoric? No. There has been a lot of social media noise lately — every high-valuation IPO gets instantly labelled “overpriced,” “bubble,” or “crazy PE exit.” And somewhere in that cacophony, the actual fundamentals of the companies and it's prospects get dismissed. But markets don’t work on social media narratives. They work on data, discipline, and buyer responsibility. 1. High Fundraising ≠ Market Euphoria India is heading towards a record fundraising year, with ~USD 17.5 bn raised YTD vs ~USD 17 bn last year. Historically, when fundraising shoots up to 3–4% of market cap, markets have entered overheated territory. Today, we are still below 2%, even if the entire IPO pipeline materialises. There's enough headroom. It’s enthusiasm — not excess. 2. Valuation Controversy Does Not = Poor Company Quality Social media often conflates two very different things: Valuation vs Business Quality Yes, some IPOs come at ambitious pricing. PE funds and promoters will push hard for lofty exits but that's not a reflection on business quality. Companies should be judged by their execution, governance, and runway — not by noise around their pricing. 3. Domestic MFs/AIF's Have Been the Valuation Gatekeepers Promoters/PEs have had to cut prices, alter sizes, or change structures. Listing have been mixed. Several deals saw flat listings despite heavy subscription while several others saw pop despite high valuations. This is not FOMO behaviour. This is constructive price discovery. 4. The Quality of IPOs has been very good Unlike earlier cycles, the current pipeline is rich with: Profitable businesses, Market leaders, High ROCE/ROE companies, Structural beneficiaries of mobility, formalisation, financialisation, energy transition, and digitisation. Certainly far better than 2007–08 and 2017–18. 5. If You Find an IPO Expensive, Simply Don’t Buy Buyer beware. Not buyer outrage. Every investor has the choice to walk away. If a valuation feels stretched — skip the IPO. There is no reward for shouting about it on social media. Don’t participate in every IPO. Be selective. Be choosy. But let’s not ignore the other side: many high-quality companies have come through the IPO route and gone on to create extraordinary wealth. Yes, survivorship bias exists — but that’s the game. Your job is to identify the wealth creator not play listing pop. IPO might not be great entry point, you may get a better entry point a few quarters later or not. But if you dismiss the entire IPO market, you risk missing out on excellent franchises. Conclusion: A Rational Market, Not a Reckless One Despite high deal flow, headline valuations, and global attention, India’s IPO market today is: Disciplined, Price-discerning Supported by strong and demanding domestic institutions, Filled with fundamentally solid companies. This is not euphoria. This is what a maturing, deepening capital market looks like. #IPO #IndianIPOmarket

𝑯𝒐𝒕 𝒕𝒂𝒌𝒆: 𝑴𝒂𝒏𝒚 𝑰𝒏𝒅𝒊𝒂𝒏 𝒄𝒐𝒎𝒑𝒂𝒏𝒊𝒆𝒔 𝒂𝒓𝒆 𝒘𝒂𝒔𝒕𝒊𝒏𝒈 𝒕𝒉𝒆𝒊𝒓 𝒆𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝒄𝒂𝒍𝒍𝒔. 𝑻𝒉𝒆𝒚 𝒂𝒓𝒆 𝒖𝒔𝒊𝒏𝒈 𝒕𝒉𝒆𝒎 𝒂𝒔 𝒄𝒐𝒎𝒑𝒍𝒊𝒂𝒏𝒄𝒆 𝒄𝒉𝒆𝒄𝒌𝒍𝒊𝒔𝒕𝒔 𝒓𝒂𝒕𝒉𝒆𝒓 𝒕𝒉𝒂𝒏 𝒔𝒕𝒓𝒂𝒕𝒆𝒈𝒊𝒄 𝒔𝒕𝒐𝒓𝒚𝒕𝒆𝒍𝒍𝒊𝒏𝒈 𝒕𝒐𝒐𝒍𝒔! Earnings calls are an underestimated communications opportunity. Watching from sidelines as someone that’s hesitated to invest in stocks, but interested as an ex-journalist and comms professional, what stands out to me is that despite India's IPO boom, post-listing storytelling is yet to mature. Following up on my Masterclass series with Amith Prabhu Geetika Gulati, here's a look at how quarterly calls must be more than just numbers updates; they should be narrative stages to define a company's trajectory. Many investors, such as Sandeep Naik emphasize long-term value creation over just immediate financial performance. Take three recent examples:  **Swiggy** keeps shadowboxing Zomato but needs to build a differentiated story around dark stores, profitability levers and innovations like Bolt. Framing the soaring costs as strategic growth investment is smart, but the real task is to shift from justifying losses to owning a credible profitability path. **Hyundai India** turned a weak IPO debut into stronger investor outlook. By aligning its pre-IPO strategy of EV infra and R&D investments with business performance and national priorities, it made sharp localization commitments with tangible plans. It showed how a lacklustre listing can be turned around with a clear story to build conviction. **Ather** had a muted debut despite strong brand equity due to profitability concerns. It's rebuilding credibility through quality-first positioning, but needs to move beyond "Apple of scooters" messaging to quantifiable investor signals: launch timelines, margin inflection points, production efficiencies. 💡 **𝐊𝐞𝐲 𝐈𝐧𝐬𝐢𝐠𝐡𝐭: Every earnings call is a narrative stage to set context, anchor expectations and connect today's numbers to tomorrow's vision. As Renuka Ramnath often reminds, investor confidence is built on conviction not cosmetics. Companies must lean into the storytelling but it must be business-led narrative than spiel or spin. Andy MUKHERJEE's June 6 story he cited in a post today said "More than excess liquidity, it’s the stories that are driving India’s lofty valuations. Some of them may be easier to follow. Others may have convoluted plots. But all of them have Bollywood-style happy endings". Hype can create spikes but strategic real storytelling creates resilience. I am sure Paul Holmes or Madan Bahal will agree. 𝑭𝒐𝒍𝒍𝒐𝒘 𝒖𝒑 𝒄𝒐𝒎𝒊𝒏𝒈 𝒔𝒐𝒐𝒏: 𝒉𝒐𝒘 𝒄𝒂𝒏 𝑰𝒏𝒅𝒊𝒂𝒏 𝒄𝒐𝒎𝒑𝒂𝒏𝒊𝒆𝒔 𝒍𝒆𝒂𝒓𝒏 𝒇𝒓𝒐𝒎 𝒕𝒉𝒆𝒊𝒓 𝑨𝒎𝒆𝒓𝒊𝒄𝒂𝒏 𝒄𝒐𝒖𝒏𝒕𝒆𝒓𝒑𝒂𝒓𝒕𝒔 𝒕𝒐 𝒔𝒕𝒐𝒓𝒚𝒕𝒆𝒍𝒍 𝒔𝒎𝒂𝒓𝒕𝒆𝒓 𝒊𝒏 𝒆𝒂𝒓𝒏𝒊𝒏𝒈𝒔 𝒄𝒂𝒍𝒍𝒔! #EarningsCalls #IPO #CorporateCommunications #IndianMarkets #Storytelling #InvestorRelations #Leadership

In the last two years, India saw one of the biggest startup IPO waves in its history. 31 #startups listed. Only 12 are above their IPO price today. That means most companies became more valuable privately… and less valuable once the public started evaluating them. That means 61% destroyed public market value after all the hype, headlines, and billion-dollar narratives. This is not a #funding problem. This is a #fundamentals problem. - Companies with real profits, strong customer retention, and capital discipline are compounding. - Companies built on TAM slides, discount-driven growth, and storytelling are struggling the moment public markets start asking real questions. Take Zomato. It wasn’t the obvious winner at IPO. Losses were high, sentiment was mixed. But the company did the hard things post-listing - improved contribution margins, exited weak verticals, and built real operating leverage. Or Groww. No excessive burn. No expansion for the sake of optics. Just a focused product, strong customer trust, and clean economics. PB FINTECH LIMITED (Policybazaar.com) did the same. Insurance is a tough business, but they built renewal-driven recurring revenue. The ones that cratered? They were selling narratives. EV revolution. India's D2C tech brand. AI-powered everything. Retail investors bought the story. The early backers booked their exits. The stock did the rest. 64% of all IPO money raised in FY25 came via OFS - existing shareholders cashing out, not companies raising growth capital. We need to be honest with ourselves about what that means. I'm not saying don't IPO. I'm saying don't IPO before you've earned it. #Founders should rather obsess over their NPS, repeat rates, cash burn per unit. That's what survives a market cycle. "We're disrupting a $100B market" does not. The customer has always been king. The market just took 18 months to remind everyone.

A few years ago, most IPO conversations revolved around TAM, revenue growth, and “path to profitability.” Today, I’m hearing a very different question from serious investors: “𝐇𝐨𝐰 𝐜𝐥𝐞𝐚𝐧 𝐢𝐬 𝐭𝐡𝐞 𝐠𝐨𝐯𝐞𝐫𝐧𝐚𝐧𝐜𝐞?” Because in India’s 2025 IPO cycle, governance is becoming 𝐚𝐥𝐩𝐡𝐚. If we look at recent listings, the ones with stronger disclosures, cleaner promoter histories, and tighter audit practices are seeing healthier subscription patterns and far more stable post-listing performance. Meanwhile, companies with glamorous narratives but weak governance signals (related-party transactions, aggressive accounting) are getting punished long before the bell rings. Because investors finally have alternatives and information. With 𝟐𝟎 𝐜𝐫𝐨𝐫𝐞+ 𝐝𝐞𝐦𝐚𝐭 𝐚𝐜𝐜𝐨𝐮𝐧𝐭𝐬 and SIP inflows hitting record levels, retail participation has matured. Domestic institutions are demanding discipline. Global investors are pricing governance premium into their models. And SEBI’s tighter scrutiny has shifted the market from “trust us” to “show us.” The new reality: 1. Good governance reduces valuation friction 2. Strong audit quality lowers long-term volatility 3. Clean promoter track is a must 4. Transparent disclosures build credibility In an era of abundant capital and abundant noise, governance has become the ultimate differentiator. The story may sell the IPO but governance sustains the valuation. #CorporateGovernance #IPOIndia #CapitalMarkets #InvestorConfidence #FinancialTransparency #IndianMarkets

What if the real IPO you’re buying isn’t the company but the story? Some listings rise because the business is strong. Some rise because the narrative is stronger. And most investors don’t realise which one they’re holding until it’s too late. Let me put it simply: -> There’s what the company says. -> There’s what the company sells. -> And then there’s what the numbers can actually support. This edition of 64ᵗʰ edition WBF goes into that uncomfortable gap, the one where: • burn looks like growth, • funding looks like strength, & • storytelling looks like scale. But the twist here is that: I’m not decoding the noise. I’m decoding the difference. (the quiet line between narratives that sprint & businesses that walk.) And somewhere inside that line is the only filter that protects real money. If you’ve ever wondered: -> Am I buying the business or -> Am I just buying the belief? Then this 64ᵗʰ edition of WBF edition will help you see it clearly. Open the full edition, where I break down the lens that separates a good story from a scalable company. #IPO #StoryVsScale #wealthbeyondfinance

🚨 𝐎𝐅𝐒-𝐡𝐞𝐚𝐯𝐲 𝐈𝐏𝐎𝐬: 𝐏𝐮𝐛𝐥𝐢𝐜 𝐦𝐚𝐫𝐤𝐞𝐭𝐬 𝐚𝐫𝐞 𝐛𝐞𝐢𝐧𝐠 𝐮𝐬𝐞𝐝 𝐚𝐬 𝐝𝐮𝐦𝐩𝐢𝐧𝐠 𝐠𝐫𝐨𝐮𝐧𝐝𝐬 𝐟𝐨𝐫 𝐩𝐫𝐨𝐦𝐨𝐭𝐞𝐫 𝐞𝐱𝐢𝐭𝐬? Kumar Shankar Roy ✍and I dive deeper into IPO data from the last five years to see how OFS-heavy listings have fared post-listing. It reveals a stark reality and poses a real question: if promoters and PE funds are rushing to sell, why is the public rushing to buy? Over the last five years, India saw around 300 IPOs with an Offer-for-Sale (OFS) component. Tellingly, 68 of these were fully OFS issues. This means not a single rupee of the ₹1.76 lakh crore raised went into expanding capacity, funding growth, reducing debt, or building the business. The sole objective was monetisation. Today, the numbers are not flattering. These 68 fully OFS IPOs debuted with a combined market capitalisation of about ₹16.88 lakh crore on listing day (closing). By April 2, that figure had fallen to roughly ₹15.93 lakh crore — a destruction of around ₹95,000 crore in investor wealth. Over 60% of these stocks now trade below their listing price, exposing the illusion of “growth stories” sold at peak valuations. What looked like opportunity was often just a well-timed exit for early investors. This is not a market anomaly; it’s a structural shift. High P/E listings, weak fundamentals, and narrative-driven hype are now being brutally repriced. Read here the full story: https://lnkd.in/g96qJ9Wu Hari Viswanath businessline

Why are companies going public... confidentially? It sounds like an oxymoron. But this is quietly becoming the new default. SEBI introduced the confidential IPO route in 2022. Only 4 companies used this route between 2022–2024. 18 used it in 2025 alone. That's a 4x jump in a single year. And India isn't alone. This is a global regulatory shift, not just a trend. The US did this in 2012. Airbnb, Uber, Lyft, Spotify, Palantir, all filed confidentially before listing. The UK followed in 2021. Singapore even earlier. The world's major markets are all converging on the same idea, from Wall Street to Dalal Street. In India, Zepto (₹11,000 Cr), Tata Capital, and now Zetwerk (₹4,200 Cr) have followed the same path. So why does it work? Because IPO pricing isn't just about financials. It's about timing and narrative. Confidential filing lets companies test investor demand, protect sensitive data from competitors, and walk away quietly if the market isn't ready. Now look at ZETWERK, which just filed this way: 📉 Revenue ↓11% YoY 📈 Losses ↓60% 💰 IPO size: ₹4,200 Cr That's a mixed signal story. Go public too early and the market anchors on the wrong number. Confidential filing buys time to shape the narrative before committing. The competitive angle matters too. Infra.Market (a direct competitor) already has SEBI's nod. OfBusiness (another rival) is planning a $1B IPO. In a crowded B2B manufacturing space, revealing your margins and pricing strategy prematurely is handing a roadmap to your rivals. The IPO is no longer a single disclosure event. It's a sequenced process: Test → Refine → Time → List. And regulators worldwide are quietly blessing it. #IPO #Globalmarkets #CapitalMarkets

🎬🎥 A Thought Provoking case about Storytelling and Marketing Storytelling is powerful. But in business, that power comes with responsibility — and timing is everything. In a surprising clash between Bollywood and the boardroom, a modest ₹65 lakh biopic recently brought a ₹3,500 crore IPO to a grinding halt. Indira IVF — one of India’s leading fertility chains — chose to spotlight its founder’s journey through film, hoping to inspire audiences and build brand goodwill just ahead of its public offering. But the script didn’t play out as planned. 🎬 The film flopped. That was unfortunate — but not the real problem. 📉 SEBI flagged the timing of the release — just days before the IPO — as a potential attempt to influence investors. The IPO was abruptly withdrawn. Years of meticulous preparation, valuation work, and investor engagement were put on pause — all because of a marketing decision wrapped in a cinematic tribute. This wasn’t just a #MarketingMisstep. It was a real-time lesson in how the medium can become the message — and when that message crosses into regulatory grey zones, even well-meaning strategies can unravel. 🧭 The takeaway? Cinema can elevate a brand — but when misjudged or mistimed, it can also derail billion-dollar ambitions. For companies looking to tell their stories, especially at critical moments like an IPO, it’s essential to collaborate with the best in their respective mediums. Align with experienced creators who understand not just storytelling — but the strategic weight of brand narratives. Done right, storytelling can build trust, widen reach, and create lasting impact. Done wrong, it can cost you everything. #CinemaMeetsCapital #IPO #SEBI #BrandStrategy #InvestorRelations #CorporateGovernance #StorytellingInBusiness #BollywoodAndBusiness