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Key Concerns
Taking a company public takes enormous time. Many companies take 12-24 months to prepare for an IPO. According to an investor survey by Ernst & Young, the key concerns for IPO candidates are overpricing of stock for listing, incomplete infrastructure preparations pre-IPO, not enough preparations done for investor communications, the complexity of process underestimates, limited flexibility with regards to timing, and so on. The main problem in most situations is when the stock is overpriced for an IPO. And this drives away many investors resulting in an unsuccessful listing.
Outlook
Although COVID-19 crippled the world’s entire operation system, one sector that continued to move was e-commerce. They are expanding their avenues in tier-II and tier-III cities. Besides, they are also targeting global expansion. Suitable government policies, regulatory reforms, and robust demand for digital services will make India a favourable destination for the influx of funds from global investors.
In 2020, despite COVID-19, India recorded a 13% growth in foreign direct investment (FDI). This growth was attributed to investments in the digital sector. Thus, it could be said that India is indeed at an inflection point where digital transformation will witness mass adoption.
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