Consider Emaar MGF (slated to kick off its public
offer on February 1, 2008) and proposes to raise Rs.7000 crores from the market. To create a buzz around its corporate image, the realty major has been promoting itself aggressively by sponsoring cricket tournaments (starting with the T-20 World Cup), billboards and sundry TV spots. Even companies peddling average sized IPOs – like that of infrastructure firm IRB, which proposes to raise Rs.11 billion from its IPO opening on 31st January 2008 – are investing big money in their marketing communications. Result: more retail investors are being drawn irrevocably toward the primary market and enquiries for opening new accounts have increased significantly. A middle level sales manager at ShareKhan on the condition of anonymity reveals: “On an average, we are opening 10-15% more accounts than our usual number of openings per month and more than 80% of these new accounts apply in IPOs.”
However, such IPO marketing activities are not a new phenomenon, but a culmination of the increased activity in the secondary markets over the last few years. Market watchers suggest that for the last three years, year after year such ad-spend has been increasing in doubles digits. Remember the increased activity around brand DLF last year, just ahead of its multi-billion dollar IPO. “We generated high visibility for the brand through the year in India and worldwide, which helped us in the successful marketing efforts of the IPO,” a DLF company spokesperson told this magazine. Even state-owned companies are in the race. In 2007, Power Grid’s IPO attracted lot of retail investors, and analysts aver that apart from its excellent credentials, it was great corporate advertising around the time of the IPO that did the magic.
Market pundits unanimously aver that going forward, companies are going to become more chic in unleashing their brand campaigns to leverage the IPO opportunity to its fullest. BSNL, Wockhardt, Sterlite Energy, Essar Power and MCX are only a few among the many shining stars on the IPO milky way that hope to mop up great investor confidence (and of course wealth ) in 2008. The hype has only just begun. Wait and watch, this is only the beginning of a whole new way of life for India Inc.
offer on February 1, 2008) and proposes to raise Rs.7000 crores from the market. To create a buzz around its corporate image, the realty major has been promoting itself aggressively by sponsoring cricket tournaments (starting with the T-20 World Cup), billboards and sundry TV spots. Even companies peddling average sized IPOs – like that of infrastructure firm IRB, which proposes to raise Rs.11 billion from its IPO opening on 31st January 2008 – are investing big money in their marketing communications. Result: more retail investors are being drawn irrevocably toward the primary market and enquiries for opening new accounts have increased significantly. A middle level sales manager at ShareKhan on the condition of anonymity reveals: “On an average, we are opening 10-15% more accounts than our usual number of openings per month and more than 80% of these new accounts apply in IPOs.”However, such IPO marketing activities are not a new phenomenon, but a culmination of the increased activity in the secondary markets over the last few years. Market watchers suggest that for the last three years, year after year such ad-spend has been increasing in doubles digits. Remember the increased activity around brand DLF last year, just ahead of its multi-billion dollar IPO. “We generated high visibility for the brand through the year in India and worldwide, which helped us in the successful marketing efforts of the IPO,” a DLF company spokesperson told this magazine. Even state-owned companies are in the race. In 2007, Power Grid’s IPO attracted lot of retail investors, and analysts aver that apart from its excellent credentials, it was great corporate advertising around the time of the IPO that did the magic.
Market pundits unanimously aver that going forward, companies are going to become more chic in unleashing their brand campaigns to leverage the IPO opportunity to its fullest. BSNL, Wockhardt, Sterlite Energy, Essar Power and MCX are only a few among the many shining stars on the IPO milky way that hope to mop up great investor confidence (and of course wealth ) in 2008. The hype has only just begun. Wait and watch, this is only the beginning of a whole new way of life for India Inc.
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