What are benefits of listing on the stock exchange for a company?

A company can raise the capital required for executing its expansion plans by becoming publicly listed. It gives business owners the opportunity to gain liquidity after initial rounds of investment. By listing its securities, a company invites the attention of media thus creating a positive image. This publicity is achieved by the issuer with little or no investment. This helps to grab the attention of investors, customers, brokers, and lenders hence giving more opportunities for growth. This marketing also improves the impression on consumers, therefore, increasing the purchase of products and services. A publicly trading company listed on the stock exchange is allowed subsequent offerings after the IPO to raise additional capital. A registration statement disclosing notable information about the issuer is filed with the SEBI. The information disclosed is investigated by SEBI before approving the listing. 

When a company decides to trade its securities publicly, it has to keep in mind the market risks and the guidelines set by the SEBI. For assistance through the listing process, the company can seek services of IPO consultant. There is a long regulatory procedure to comply with, preparing a prospectus is one of the primary steps of the listing process. For drafting of this prospectus, many rounds of discussions are held between the management of the company and firm providing investment banking service. Depending on the size of the IPO, one or more investment bankers are appointed. The prospectus is to attract investors and is subject to change, final prospectus is prepared after detailed valuation of the issuer and is presented on the actual day of listing. Planning of the IPO is crucial and many factors including the market conditions and competitors need considerations. Investment bank also help with this planning and thus work to boost the chances of a successful IPO. 

For the listing of securities, NSE and BSE are the two recognized stock exchanges that have a nationwide reach. A company has the option to list on both exchanges, provided it fulfills the set rules for listing. The initial listing fee and annual compliance fee varies on both these exchanges, in case a company fails to comply with the annual compliances, it has to undergo compulsory delisting. 

CCV India is a brand emerging in the field of IPO consultancy, it is also a SEBI registered merchant banker providing equity listing, direct listing on bse and nse and business valuations. CCV group has an experience of ten years and specializes in various disciplines. With a team of experts from different fields, highly accurate and time bound services are provided to clients.

Conclusion: Equity listing is a substantial step for companies looking for expansion and IPO consultants help comply with the regulations.