Listing will provide liquidity, brand value for start-ups: T V Mohandas Pai

Pai said if such start-ups go for listing, pricing should be attractive as an attractively-priced IPO will get good returns

Pitching for start-ups to go public, T V Mohandas Pai, chairman of Manipal Global Education, said listing will provide liquidity and create brand value for such entities. 

He said listing is something that needs to be looked at.

"I believe if start-ups are not prepared to go to main bourse then they must go for small companies markets to list as listing provides liquidity, creates brand and gives discipline," Pai, who is also an angel investor, told PTI here.

"The major challenge for India has been exits... there have been exits but we need large exits. I think in the next one year, may be four-five start-ups will get listed," he said.

Pai further said if such start-ups go for listing, pricing should be attractive as attractively-priced initial public offering (IPO) will get good returns.

Further, to encourage start-ups for listing, leading bourse National Stock Exchange (NSE) is also going to hold a meet in Bengaluru on Tuesday to talk to such entities about whether they could access the markets for small companies.

The institutional trading platform (ITP) is yet to see any start-up listing ever since an easier set of compliance and disclosure requirements was notified by markets regulator Sebi in August 2015.

These norms have been put in place to encourage Indian start-ups and entrepreneurs to remain within the country rather than go abroad for funds.

Pai, who has invested in many start-ups, said he is personally fond of listing.

"We have at least 250 start-ups across 10 funds, we are preparing them so that they come to a listing stage as I'm very fond of listing as listing creates great value to everybody," he said.

Currently, there are 32,000 start-ups and every year 7,000 companies are coming around.

Further, the number of start-ups will reach 100,000 by 2025 creating $500 billion of value and they will employ 3.25 million people, Pai said.

He said India has possibly got the third largest ecosystem for start-ups after the US and China.

"Youngsters through the use of technology are solving hard core challenges and I believe that innovation by young people will transform India," he said.

The impact has already been seen in many sectors, including education, healthcare, education, and e-commerce.