Building an investor brand: How communication shapes IPO success

In an era where India's IPO market is witnessing unprecedented activity, the role of strategic communications in shaping investor perception has never been more critical.

At the recent afaqs! CommuniCon, Gaurav Phadke, Senior Group Head at Adfactors PR, offered valuable insights during a fireside chat on "Building an Investor Brand for Companies Planning to Go Public," moderated by Venkata Susmita Biswas, the then Excecutive Editor of afaqs!.

The conversation began with a revelation that set the context for the entire discussion: approximately 90 companies are expected to file or have already filed draft prospectuses, aiming to raise about Rs one trillion ($11 billion) in 2025 alone. More than 20 of these are startups, including prominent names like Ather, Zepto, Urban Company, Porter, and Pharmeasy.

While the journey to an IPO is traditionally spearheaded by the CFO and occasionally involves marketing efforts led by the CMO, Phadke highlighted a significant oversight in this process—the late inclusion of communications professionals.

"The communications team or the communications professional is typically the last one into that discussion," Phadke observed. "This is again typically hidden under the reasons of NDA, disclosure information, need to know, et cetera. But I think the industry does a great disservice to communications as a fraternity when it chooses not to double down on communications in the lead-up to IPO."

Phadke emphasised that the IPO process, which is inherently number-heavy and legally complex, requires a degree of demystification for the general public, particularly for new business models such as electric vehicles, consumer tech, or gig economy platforms. This demystification, he argued, falls squarely within the province of communications.

"Especially when trying to articulate that story in a manner that is understandable by the 18 crore demat account holders who are essentially your end investors, I think comms plays an invaluable role," he said, adding that companies are increasingly recognising this value, with hundreds currently engaging in discussions about communications strategy 18 to 24 months ahead of their planned IPOs.

When pressed about the misconceptions brands have regarding communications, Phadke pointed to a fundamental misunderstanding of its role.

"The overall impression that I get from talking to promoters, founders, CFOs, et cetera, is that comms is a cost centre. It's good to have maybe when you're doing great product launches and such, but here, when your product that you're selling is your equity, comms cease to be what they're perceived to be and actually become business-critical."

He elaborated that once a company is listed, it must communicate effectively with various stakeholders, including institutional investors and retail shareholders, across multiple channels. This requires a strategic approach that transcends tactical product messaging.

Drawing from his experience of working with companies from 18 months before their IPO through to their journey as listed entities, Phadke outlined three recurring themes that form the cornerstone of effective pre-IPO communications:

"The most important thing to talk about is your TAM, or your market—the target addressable market, attractiveness of that market, size, growth, and what you have. If you're not in a great market, why are you there? So that's the first thing you have to be talking about," he explained.

"The second is your MOAT—what gives you that deep competitive advantage that sets you apart from your peers, your competitors, and so on, and what gives you that right to win?"

"And the third is your leadership bench—who are those people, what have they built, and what gives them the right to build and the right to win in that chosen market and in that chosen business."

Phadke recommended starting communications efforts 18 months before an IPO, noting that once bankers and lawyers are appointed (typically four-five months before filing), regulatory constraints significantly limit brand-building activities. 

This early start allows companies to establish a digital footprint and create enough legal precedent to continue communications during the IPO process.

"It's not scrabbling for stuff to put out there," he said. "It's a very calibrated, simple program—high-impact stories. Need not go all out; it's a simple buildup that builds out TAM, MOAT, and credibility of the management... There are two very critical objectives there that take a year to set up, but they are totally worth the effort."

As India's IPO landscape continues to expand rapidly, Phadke's insights serve as a timely reminder that effective investor communications isn't just about numbers and legalities—it's about crafting a compelling narrative that resonates with potential shareholders and establishes a foundation for long-term market trust.

Watch the full session below: