Marketing of IPO is very important to ensure 100% subscription of an IPO in all the segments.
Marketing Strategy of IPO should be prepared by Marketing and PR team of the issuer with the Consultant having experience of Business-to-investor marketing.
A wide spectrum of marketing tool should be used to achieve significant over-subscription from institutional as well as retail investors segment.
The Road show
In the road show a company and its underwriters transverse through the country as well as abroad.
They conduct several meetings with potential investors; security analysis, brokers and potential underwriting syndicate members.
Some of these meetings are one-to-one, but most are group meetings.
The road show is most effective marketing tool for Institutional investors.
The road show is conducted in the weeks immediately preceding the effectiveness and pricing of IPO, many indications of interest are placed immediately after a road show stop.
The company’s story which may have been first told at the organizational meetings, which has been converted into an onscreen summary to be conveyed in 30 minutes or less to an astute and inquisitive audience can make or break an IPO.
A successful road show typically, has a meaningful impact on the IPO price and on initial aftermarket trading
Marketing strategy for retail investors
Top 15 cities in India contribute more than 90% to the amount raised in IPOs. Therefore it is important to take press conferences in key cities.
Advertisements in Newspapers, Business channels, and public relations campaign.
Management interviews in print and electronic media.
Broker conferences, press conferences etc.
Site visit for key brokers across India.
Sustained awareness program before SEBI observations, through corporate advertisement campaign.
A good website and youtube channel having corporate videos, testimonials of customers etc. are important marketing tools.
Marketing strategies for HNIs
25% of the Marketing budget of IPO goes in targeting High Net Worth Individuals (HNIs) of India and abroad.
Initial contacts with High Net Worth Individuals (HNI) by Private Client Services (PCS) sales person
Key HNI meet with the management
Marketing strategies for qualified institutional investors.
Develop equity story through research report
Communicate equity story during pre-marketing where sector analysts interface with fund managers to discuss financials and answer preliminary questions
Collate pre-marketing feedback and decide floor price
Follow-up by senior salespersons to address investor queries
Prepare senior personnel for management roadshows based on the interaction of the sector analyst and salespersons with fund managers.
Finalize the management road show schedule to maximize investor coverage across investor geographies.
One-on-one meetings and group functions with company management – video/telephone conferences in secondary cities as needed
Regular interface by salespersons with fund managers to follow-up for bids.
