National Stock Exchange (NSE) Managing Director and CEO Ashish Chauhan emphasized public listing as a strategic tool for founders, enabling capital raising without losing control. Speaking at the 9th JITO Incubation & Innovation Foundation (JIIF) Day event on Friday, Chauhan urged companies to view public listing as a strategic tool for scaling up operations rather than a threat to their ownership. According to reports from ET Now and The Economic Times, Chauhan stated that public markets provide growth capital, improve governance standards, enhance credibility, and help companies attract top talent while allowing promoters to retain control. The NSE chief noted that public markets reward profitable businesses with a valuation that private balance sheets cannot match, with a company earning ₹2 crore annual profit potentially commanding a market capitalisation of ₹40 to 50 crore once listed. Chauhan emphasized that "If the company's profits grow, its share price will eventually follow. It is not possible to keep increasing market value without genuine business growth." He advised entrepreneurs to concentrate on expanding their businesses and delivering greater value to shareholders through strong fundamentals rather than trying to influence stock prices.
Chauhan explained that promoters can offer 25 per cent of equity to the market at the outset, retain 75 per cent, and dilute further only as the business requires. As reported by ET Now and The Economic Times, he said, "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." The NSE chief noted that public markets reward profitable businesses with a valuation that private balance sheets cannot match, with a company earning ₹2 crore annual profit potentially commanding a market capitalisation of ₹40 to 50 crore once listed. This structure provides promoters with room to raise capital, bring in partners, and expand operations while maintaining operational control. Chauhan advised entrepreneurs to concentrate on expanding their businesses and delivering greater value to shareholders through strong fundamentals rather than trying to influence stock prices.
According to Chauhan's remarks reported by ET Now and The Economic Times, listing provides companies with their own currency, allowing listed promoters to use stock to acquire other businesses, draw in partners, and reward staff through stock options. Beyond fundraising, 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. Chauhan cited Infosys founders N.R. Narayana Murthy and Nandan Nilekani, who introduced employee stock ownership plans (ESOPs) in the company's early years to attract talented professionals despite limited financial resources. Addressing concerns about hostile takeovers, Chauhan stated that control stays with the promoter and no change of ownership can occur against a founder's wishes. He cautioned founders against chasing artificial trading volumes, emphasizing that "Your business is in your operations, not in the share price" and advising them to focus on building profitable, sustainable businesses rather than being distracted by temporary market shifts. Chauhan also highlighted the importance of innovation in entrepreneurship, noting that innovation is not limited to major technological breakthroughs but can happen through small improvements in everyday processes.
As reported by ET Now and The Economic Times, Chauhan advised founders to plan for significant growth, stating "If you are doing a business of ₹10 crore or ₹20 crore, you should be planning for ₹200 crore and beyond." The keynote comes just days after the NSE filed its draft prospectus for its long-awaited initial public offering. Meanwhile, companies on the NSE's SME platform, launched in 2012, have collectively raised more than ₹21,700 crore and hold a combined market capitalisation of more than ₹2 lakh crore. JIIF Chairman Jeenendra Bhandari stated that over the past two years, the foundation successfully completed four incubation cohorts and facilitated over ₹60 crore in startup investments. Bhandari added that the foundation secured a ₹5 crore MSInS grant and a ₹2 crore SISFS grant to further strengthen the innovation ecosystem. Chauhan emphasized that capital markets provide businesses with significant opportunities to raise funds and accelerate growth, but long-term success depends on maintaining financial discipline and consistently creating value for shareholders. He noted that getting listed on the stock exchange is not as difficult as often perceived, but companies need to focus on compliance, governance and transparency after entering the public markets.
