Benefits to Corporates
Higher visibility & credibility
- Visibility on getting listed will improve credibility with all stakeholders
- Will attract new profile of sophisticated investors in the company
- Promoters of growing companies can dilute smaller stakes to informed investors on need basis
- Conserve value during growth stage
Setting the stage
- Listing entails robust corporate governance and internal controls and systems
- Prepares a company for a wider fund raising in future
- Shares are more efficient & cost effective currency substitute to acquire target companies.
- Ability to complete M&A in a more timely manner
Employee Stock Options
- ESOPs become powerful tool to attract & retain talent.
- Compensating employees without affecting cash flows.