After a long time, many companies based in Tamil Nadu have been taking their companies public through initial public offering (IPO). According to Prime Database, a data company focussing on capital markets, eight companies from the State raised money through IPOs last year. They are Aptus Value Housing Finance India Ltd; Craftsman Automation Ltd; Data Patterns (India) Ltd; Go Fashion (India) Ltd; Latent View Analytics Ltd; Shriram Properties Ltd; Star Health and Allied Insurance Co Ltd; and Chemplast Sanmar Ltd (which got relisted).
This year too, several companies have sought approval from the Securities and Exchange Board of India for IPO. Radiant Cash Management Services Ltd and Veranda Learning Solutions Ltd have got the approval, while Tamilnad Mercantile Bank Ltd and Five-Star Business Finance Ltd are in the pipeline.
Chennai-based analytics company LatentView Analytics raised ₹600 crore and it saw the highest-ever subscription in India. “Going public has given us the capital needed to chase the large opportunities we see today, both organic and inorganic. Being listed lends additional credibility during engagement with clients and also helps us attract the best talent,” says Rajan Venkatesan, chief financial officer, LatentView Analytics Ltd.
“Good governance and strong academic infrastructure that feed intellectual capital needed to drive our business are two large advantages of running our business in Tamil Nadu. Also, the Tamil Nadu government is pushing to be a $1-trillion economy by 2030. Data and analytics and artificial intelligence will play a key role in this. This will be a big positive for companies like us headquartered in Tamil Nadu,” he adds.
Go Fashion, the company behind the brand Go Colors, listed on the bourses last year and raised over ₹1,000 crore. “After 11 years into the business, we took the company public. It has been an absolute pleasure doing business in Tamil Nadu for so many years. We have found good talent across all aspects of our business in Chennai and other parts of Tamil Nadu,” says Gautam Saraogi, CEO, Go Fashion.
Data Patterns, the Chennai-based an aerospace and defence electronics systems company, went public last year. “To address the large opportunity and scale up the business as a defence equipment company comparable to international companies, we took a decision to take the company public,” says Srinivasagopalan Rangarajan, managing director, Data Patterns (India) Limited.
The ideal location for aerospace and defence electronics would have been either Bengaluru or Hyderabad, given the number of DRDO labs, defence public sector enterprises and ISRO centre operating from there. “However, we chose Chennai because, it was felt, being a conservative place, we would be able to retain talent better than in Bangalore or Hyderabad,” he says.
“It was in 2005 that I founded Radiant Cash Management Services in Chennai after taking voluntary retirement from the Army at the age of 45...” says Col. David Devasahayam (retired), chairman, Radiant Group of Companies. “Our company is in retail cash management and is a market leader with a presence in over 4,700 locations pan India with a footprint in over 12,000 PIN codes. Chennai has the best operational climate in terms of a very disciplined and knowledgeable work force, which helped set up all practices as per the best global standards.”
While the stock price performance of these companies will depend on market sentiments and their future performance, more companies tapping into the capital markets is a healthy sign.
