Ashish Chauhan, MD and CEO of NSE, said profitable businesses should use public markets to raise growth capital, while Jeenendra Bhandari highlighted JIIF’s support for startups with over ₹60 crore in investments.
Founders should view public listing as a strategic tool for long term business growth rather than focusing on short term share price movements, National Stock Exchange Managing Director and CEO Ashish Chauhan said while addressing entrepreneurs at the JITO Incubation and Innovation Foundation Foundation Day event in Mumbai.
Speaking at the event themed Compounding Bharat: Innovation Multiplied by Entrepreneurship, Chauhan said public markets provide growth capital, improve governance standards, enhance credibility and help companies attract talent while allowing promoters to retain control of their businesses.
His address comes shortly after the National Stock Exchange filed its draft prospectus for what is expected to be one of India’s largest public offerings.
Chauhan said founders can initially offer 25 percent equity to public investors while retaining 75 percent ownership, enabling them to raise capital without giving up control.
He said, “When you list, you keep 75 per cent with yourself and offer 25 per cent to the market in the beginning. You can give more later. Control stays with you.”
According to Chauhan, public markets reward profitable businesses with stronger valuations than private balance sheets. He said a company earning an annual profit of ₹2 crore could potentially achieve a market capitalisation of ₹40 crore to ₹50 crore after listing, creating opportunities to raise capital, bring in strategic partners and expand operations.
He also described listed equity as a valuable business asset that can be used for acquisitions, partnerships and employee stock ownership plans. Referring to Infosys, he noted that founders N. R. Narayana Murthy and Nandan Nilekani used employee stock options to attract talent during the company’s early years.
Chauhan said listed companies also benefit from stronger governance, analyst coverage, easier access to bank financing and smoother succession planning. He added that compliance requirements are often less burdensome than entrepreneurs expect and are generally managed by company secretaries.
Responding to concerns about hostile takeovers, Chauhan said promoters continue to retain control and ownership cannot change without their consent.
He also advised founders not to become distracted by stock price movements.
“Your business is in your operations, not in the share price. The stock market is only a reflection of your business, it is not the business itself,” he said.
Discussing the SME segment, Chauhan said companies listed on NSE’s SME platform have collectively raised more than ₹21,700 crore since its launch in 2012 and currently account for a combined market capitalisation exceeding ₹2 lakh crore.
While acknowledging that SME businesses carry higher risks than larger listed companies, he said investors understand those risks and well managed businesses can scale rapidly.
“If you are doing a business of ₹10 crore or ₹20 crore, you should be planning for ₹200 crore and beyond,” he said.
Speaking at the event, Jeenendra Bhandari, Chairman of JITO Incubation and Innovation Foundation, said the organisation has evolved into one of the community’s leading entrepreneurship platforms over the past nine years.
He said JIIF has completed four incubation cohorts over the last two years, facilitated startup investments exceeding ₹60 crore, established partnerships with more than 20 ecosystem partners and collaborated with over 30 national and regional organisations.
Bhandari added that JIIF secured a ₹5 crore MSInS grant and a ₹2 crore SISFS grant, while startups supported by the foundation achieved three full and three partial investment successes. He also highlighted the launch of a 5,000 sq. ft. incubation centre in Mumbai and continued investor engagement initiatives.
JITO, the Jain International Trade Organisation, is one of the world’s largest networks of Jain entrepreneurs, industrialists and professionals. Through JIIF, the organisation supports startups and innovation, with previous Foundation Day events featuring founders and business leaders from companies including Paytm, Zepto, Info Edge and Haldiram’s.
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