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National Stock Exchange (NSE) Managing Director and Chief Executive Officer Ashish Chauhan has urged startups and MSMEs to embrace public markets as a tool for raising capital, improving governance and accelerating growth, while cautioning founders against becoming overly focused on daily stock price movements.
Speaking at the JITO Incubation and Innovation Foundation's Foundation Day event at the NSE, Chauhan said entrepreneurs should concentrate on building sustainable and profitable businesses rather than worrying about market fluctuations.
"Your business is in your operations, not in the share price. The stock market is only a reflection of your business, it is not the business itself," he said.
Chauhan argued that listing provides companies with access to growth capital without forcing promoters to surrender control. Under the public market route, founders can initially offer a portion of their equity to investors while retaining a majority stake and decision-making authority.
"When you list, you keep 75% with yourself and offer 25% to the market in the beginning. You can give more later. Control stays with you," he said.
Beyond fundraising, Chauhan said listed companies benefit from greater credibility, analyst coverage, easier access to bank financing and the ability to attract talent through employee stock ownership plans. Publicly traded shares can also be used as a currency for acquisitions and strategic partnerships, he added.
Highlighting the valuation premium that profitable businesses can command, Chauhan said a company generating annual profits of ₹2 crore could potentially achieve a market capitalisation of ₹40-50 crore after listing.
His remarks come just days after NSE filed its draft prospectus for its long-awaited initial public offering. Addressing concerns around hostile takeovers, Chauhan said promoters remain in control of ownership decisions and cannot be forced out against their wishes.
Also Read: NSE files DRHP for IPO: 10 things investors need to know
NSE's SME platform, launched in 2012, has collectively helped companies raise more than ₹21,700 crore and today commands a market capitalisation of over ₹2 lakh crore, he noted.
"If you are doing a business of ₹10 crore or ₹20 crore, you should be planning for ₹200 crore and beyond," Chauhan said.
Speaking at the JITO Incubation and Innovation Foundation's Foundation Day event at the NSE, Chauhan said entrepreneurs should concentrate on building sustainable and profitable businesses rather than worrying about market fluctuations.
"Your business is in your operations, not in the share price. The stock market is only a reflection of your business, it is not the business itself," he said.
Chauhan argued that listing provides companies with access to growth capital without forcing promoters to surrender control. Under the public market route, founders can initially offer a portion of their equity to investors while retaining a majority stake and decision-making authority.
"When you list, you keep 75% with yourself and offer 25% to the market in the beginning. You can give more later. Control stays with you," he said.
Beyond fundraising, Chauhan said listed companies benefit from greater credibility, analyst coverage, easier access to bank financing and the ability to attract talent through employee stock ownership plans. Publicly traded shares can also be used as a currency for acquisitions and strategic partnerships, he added.
Highlighting the valuation premium that profitable businesses can command, Chauhan said a company generating annual profits of ₹2 crore could potentially achieve a market capitalisation of ₹40-50 crore after listing.
His remarks come just days after NSE filed its draft prospectus for its long-awaited initial public offering. Addressing concerns around hostile takeovers, Chauhan said promoters remain in control of ownership decisions and cannot be forced out against their wishes.
Also Read: NSE files DRHP for IPO: 10 things investors need to know
NSE's SME platform, launched in 2012, has collectively helped companies raise more than ₹21,700 crore and today commands a market capitalisation of over ₹2 lakh crore, he noted.
"If you are doing a business of ₹10 crore or ₹20 crore, you should be planning for ₹200 crore and beyond," Chauhan said.
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