The National Stock Exchange (NSE) said that it would facilitate startups in India to mobilise funds through a public issue even in growth stages.
Notably, there is a sideways way that some startups use to go public called a reverse merger into a public shell.
“We are committed to provide new age firms (start-ups) an ecosystem for raising equity capital in growth stages through a public issue,” said NSE Chief Executive Vikram Limaye at a tech conclave in Bangalore it organised to address funding issues of new age technology entrepreneurs.
Experts participating in the conclave preferred IPOs (Initial Public Offering) to raise funds for startups.
With an IPO, It may be a young company trying to generate some needed revenue or an established company that just waited to go public. Whether a company is trying to expand or just paying its debts, the bottom line is that companies seek an IPO to raise money.
Notably, when a company goes public its not just company that gets money but the employees too gets the benefits. Five years ago when Facebook went public, debuted at $38 per share, its the employees that struck rich by literally becoming millionaires on-paper.
Tech IPOs have minted millionaires, with stories of even janitors who worked at Google striking it rich after the company went public in 2004.
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