CHALLENGES FACED BY THE INITIAL PUBLIC OFFERING (IPO)
INITIAL PUBLIC OFFERING (IPO) is the major component of any corporate world. To start a company, you not only need good financial assistance, you also need proper resources like quality manpower, skilled managers, and the experienced management.
People in India have got the misconception that IPO implementation is like a walk in the park. Not quite, IPO is the challenging aspect of any corporate world, because it can decide about the rise and fall of an enterprise in India.
Moneymindz, is having certified financial advisers offering advice regarding the IPO and its importance.
One must be very careful as an owner/CEO/MD, in applying for IPO in India. Some of the terrible challenges faced by the companies in India for applying the IPO are given below as follows:
ØInterest of Minority Investors Must Be Taken: Investors are the heart of any organization small and big in India. Opinions and feedbacks given by the shareholders must be given top priority. Company can achieve its short term operational goals in a systematic manner, at the expense of its vision, when investor’s feedback is given importance.
ØWide Ranging Documentations And Reporting: To be honest, the amount of documentation required for setting up an IPO is too much. This requires a sweet combination of tactical and practical documentations. Any mistake in filing documents required, not matching the expectation laid by Securities and Exchange Board of India (SEBI), can affect company.
ØManagement Related Issues: Simply by appointing the directors, managers, CEO, Vice president to the top position, does not resolve issues. Various issues like takeovers, ousters, infighting will definitely come up. As the owner of the company, you will need to resolve these issues with iron hand.
ØSubstantial Investment In IPO: Companies in India need to plan in advance, before investing in an IPO. Executives, managers and Board of Directors need to invest their time and money in a logical fashion.
ØPressure: Various performance pressures are associated with companies in India. All details of the company are shared with people, and hence it is ordinary to experience pressure in sales, operations and financial fields. Tight deadlines are met relating to company operations by sending in the weekly and monthly, quarterly and yearly reports.
So, please make sure that you have a good fleet of experienced people around you before applying for IPO in India.
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