- Listing provides an opportunity to the corporates / entrepreneurs to raise capital to fund new projects/undertake expansions/diversifications and for acquisitions.
- Listing also provides an exit route to private equity investors as well as liquidity to the ESOP-holding employees.
Listing also helps generate an independent valuation of the company by the market.
- Listing raises a company's public profile with customers, suppliers, investors, financial institutions and the media. A listed company is typically covered in analyst reports and may also be included in one or more of indices of the stock exchanges.
- An initial listing increases a company's ability to raise further capital through various routes like preferential issue, rights issue, Qualified Institutional Placements and ADRs/GDRs/FCCBs, and in the process attract a wide and varied body of institutional and professional investors.
- Listing leads to better and timely disclosures and thus also protects the interest of the investors.
- Listing on BSE provides a continuing liquidity to the shareholders of the listed entity. This in turn helps broaden the shareholder base.
- Companies listed on BSE generally find that the market perception of their financial and business strength is enhanced.
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