Anxiety, excitement, suspense, drama...No it's not just about the release of a Bollywood movie. The opening of an IPO in Indian retail financial market has all these ingredients and much more.
Its a mela of Initial Public Offerings in the booming Indian capital market with several IPOs lined up for the investor response.
Around 10 companies, including Idea Cellular, Power Finance Corporation, Indian Bank, Firstsource Solutions, Transwarranty Finance and Euro Ceramics are in the fray to corner more than Rs 6,000 crore of investor money this month to fund their future business plans.
IPO market has come a long way. And with the regulators keeping an eagle eye on the market, it has become all the more transparent with the corporates having to meet a host of compliances before even dreaming about the big buck.
In fact, marketing an IPO is akin to selling a movie, an FMCG product, a cola or a pizza. "It's all about tapping the retail market," says Vivek Suchanti, MD of Concept Communications.
Communications experts today have to master the art of advising clients on SEBI guidelines and compliances, PR activities, road shows and events, data base management and so on.
Seamless interaction with distribution channels is not limited to white goods or telecom companies. IPO industry also has its own channel partners -- the broking community and their sub-brokers and agents at almost door-to-door level.
Positioning an IPO is as complicated as positioning any product and it involves brand management expertise as well.
"It assumes criticality as its success or failure has a direct impact on the valuation of a company and its fund raising capability," points out Concept's Suchanti. "Its also like selling a story," says another analyst.
"Investing in an IPO does not offer immediate and tangible benefit to the customer. It's ridden by complete uncertainty and is obviously driven by the demand created by the marketing experts," he says.
However, the IPO market has only a couple of agencies that have mastered the art. But with the size of IPOs ranging from Rs 100 crore to as much as Rs 10,000 crore, the competition has hotted up.
It's just not the agencies alone that have a job at hand during an IPO. An IPO supports a whole lot of industries like printing, publications and electronic media, brokers, courier agencies, travel and hospitality industry and so on. Registrars, lawyers and audit firms besides investment bankers have their own roles to play in the IPO stage.
In fact, there is a dearth of registrars these days with Karvy and Intime Spectrum facing legal battles.
Money management has acquired many dimensions and an IPO is no different. Players involved in IPO management await with bated breath just as Bollywood stars, directors and producers.